Lion: Seram PSC production up 4.5%
Thursday, July 30 2015 - 05:15 AM WIB
ASX-listed Lion Energy said that the Seram PSC production increased to 2984 bopd (75 bopd net toLion) in the second quarter of this year, up 4.5 percent from 2856 bopd in the previous quarter, with successful drilling and completion of Oseil-27 well with steady production at 740 bopd.gross crude oil production was 271,544 barrels (6789 bbl net to Lion).
"Revenue of US$464,500 was received from a lifting in May2015 of 340,015 barrels of crude oil. The exit rate for the quarter of 3440bopd bodes well for the current quarter production," Lion said.
The firm said a material gas discovery for Lion was confirmed with a successful testing program of the Lofin-2 appraisal well, which flowed gas at approx. 17.8 mmscfd with some water and minor condensate through a 52/64?choke.
As previously reported, wireline pressure testing combined with sampling and drill stem test data, indicates a gas column in the large Lofin structure of at least 1106m and potentially up to 1300m.
"Good progress has been made on the unconventional joint studies and formal approval was received from the Indonesian regulator to extend the South Block A PSC to end 2016,"Lion said in its latest quarterly report.
Lion?s CEO, Kim Morrison noted: ?The testing of the large gas column in Lofin-2 was a highlight in the quarter. We are also pleased with the results of Oseil-27 which has lifted our production to 3440 bopd as at quarter end and we look forward to further growth with ongoing development drilling.While the low oil price environment puts challenges on our business, we are keeping a tight rein on costs while proactively looking at attractive counter-cyclical opportunities.?
Lion, via its wholly owned subsidiary, Lion International Investment Ltd, holds a 2.5percent participating interest in the Seram (Non-Bula) Block Renewal Production Sharing Contract, located onshore at Seram Island in eastern Indonesia. The major equity holder and operator of the joint venture is CITIC Seram Energy Ltd(51 percent). Other partners are KUFPEC (Indonesia) Ltd (30 percent) and Gulf Petroleum Investment (16.5 percent).
Editing by Reiner Simanjuntak