Lion: Spudding of Lofin-2 well scheduled for this month
Wednesday, October 1 2014 - 02:40 AM WIB
ASX-listed Lion Energy Limited announced Wednesday that the Lofin-2 appraisal well in the Seram (Non-Bula) PSC will be drilled this month to appraise the 2012 Lofin discovery.
Lion, through its wholly owned subsidiary Lion International Investment Limited (LII), holds a 2.5 percent shareholding in the Seram (Non Bula) PSC joint venture. The PSC is located onshore on the island of Seram, in Eastern Indonesia.
The company said in the report that a successful development drilling program was completed during the year ended June 30 2014.
With the impact of new wells, production from the Oseil oilfield and surrounding structures was ahead of budget at 944,968 bbls of crude oil (23,624 bbls net to Lion) at an average daily rate of 2,589 BOPD (64.7 BOPD net to Lion).
Net revenue to Lion from three lifting during the year was US$2,209,747. Current daily production, as of September 29 is 2994BOPD (74.9 BOPD net to Lion).
?The joint venture now looks forward to spudding of the Lofin-2 appraisal well in October 2014 to appraise the exciting 2012 Lofin discovery,? Lion said.
In 2012, the Lofin 1 exploration well was drilled in the west of the PSC on a prominent structural feature. The well was a discovery flowing gas and condensate/oil on test with data indicating potential for a significant hydrocarbon column extending below the Lofin 1 total depth. This will be tested by an appraisal well.
Elsewhere, Lion said in the report that it a well drilling program in the South Block A PSC is scheduled for the first quarter of 2015 to test a low risk, shallow oil and gas prospect.
Lion has a 35 percent interest in the South Block A PSC through wholly owned subsidiary KRX Energy (SBA) Pte Ltd. The PSC is located in North Sumatra basin and contains large gas and overlooked oil volume potential.
The firm said in the report that a 183 km seismic survey over key prospects and leads in South Block A PSC was completed safely, on budget. The data has been processed and interpretation that is currently underway is confirming the highly attractive prospect portfolio.
Editing by Reiner Simanjuntak