Lion to farm out Sumatran unconventional joint studies
Monday, June 8 2015 - 01:19 AM WIB
ASX-listed Lion Energy is planning to farm out its interest in joint studies on two highly prospective unconventional areas situated in North Sumatra Basin and Bengkalis Graben area of central Sumatra respectively, according to an industry source.
The source did not give details about the percentage of interest the firm planned to farm out.
According to the source, the two areas have substantial shale gas, shale oil, tight gas and tight oil potentials. The total areas where the joint studies have been carried out to date are over 17,000 sq km, each potentially to contain multi-tcf gas and multi-hundred million barrels oil.
In North Sumatra, Lion leads a joint study covering an area of 4684 sqkm in the southeast of the basin. Under an agreement announced by Lion on Nov. 19, 2014 Lion will operate the study with a 55 percent interest; and the partners in the conventional Bohorok PSC, which partly overlaps the area of the unconventional joint study, jointly have 45 percent interest.
In Central Sumatra, Lion will conduct a joint study over an area of 2478 sqkm covering part of the Bengkalis Graben, a major oil province in the east of the basin. Lion is the operator of the study with 75 percent, and the conventional rights holder in the partly overlapping area, has a 25 percent interest.
?Completion of a joint study gives Lion priority rights (right to match) over unconventional PSC?s granted over the relevant areas,? the source added.
Editing by Johannes Simbolon