Lion: Testing of Lofin-2 well continues despite challenges
Friday, May 15 2015 - 04:26 AM WIB
ASX-listed Lion Energy Ltd said Friday that the Lofin-2 appraisal well has reached a depth of 5861m MD with encouraging gas and oil shows continuing to be encountered.
?Gas chromatography and oil shows in the primary objective were encountered through to total depth. Ongoing operational issues involving stuck drill string have resulted in the decision to test a 437m open hole section of the Manusela limestone,? the company said in a statement.
Since Lion?s last update on the Lofin-2 well on 30 April 2015, wireline logging to 5471m MD and deepening of the 6 inch hole to the current total depth of 5861m MD was completed, with gas and oil shows continuing to be encountered in the primary objective.
Analysis of pressure data support an interpreted significant gas column in the large Lofin structure.
Lion?s CEO Kim Morrison noted ?While it is clearly disappointing to have encountered the operational problems on Lofin-2, the results to date are highly encouraging and we look forward to the testing results.?
Lofin-2 is located in the Seram (Non Bula) PSC in eastern Indonesia. Lion has a 2.5 percent interest in the Seram (Non Bula) PSC which is operated by CITICSeram Energy Ltd (51%) with other co‐venturers being KUFPEC (Indonesia) Ltd (30%) and Gulf Petroleum Investment Company (16.5%).
Editing by Reiner Simanjuntak