Lion updates driling in Seram PSC

By Ruli Setiawan

ASX-listed Lion Energy Ltd (LIO) announced on Wednesday that the Lofin-2 appraisal well has reached a depth of 5471m MD/ 5128m TVDSS, slightly below its initial planned total depth of 5425m MD, as the well continues to encounter hydrocarbon shows. Wireline logging is currently underway to evaluate the 861m open-hole section of the Manusela primary objective.

Since Lion?s last update on the well on March 25, 2015, further coring was undertaken prior to a resumption of drilling 6 inch hole in the Manusela limestone objective from 4870m to the current total depth of 5871m MD.

On completion of wireline logging, the well will be flow tested and, subject to a successful flow period and shut-in pressure build up, production logging tools will be run to determine potential productive zones within the extensive Manusela Formation limestone section.

Should the evaluation confirm that the well is still in hydrocarbons at the current depth, it is likely the well would be deepened beyond the initial planned total depth to fully appraise the extent of the potential hydrocarbon column.

Lion?s CEO Kim Morrison noted ?We continue to be encouraged by results from Lofin-2 with positive geological indications with respect to hydrocarbon shows and reservoir within the Manusela limestone objective, although we caution that performance of limestone reservoirs can be uncertain. We compliment the Operator, CITIC, on the successful engineering outcome thus far on the well and now look forward to results of the wireline logging and testing program.?

Lofin-2, which spudded on Oct. 31, 2014, is located in the Seram (Non Bula) PSC in eastern Indonesia and is being drilled to appraise the Lofin-1 discovery made in 2012. Lofin-1 flowed 15.7 mmscfgd and 171 bpd oil/condensate from the fractured Manusela Formation encountered from 4267m MD/4164m SSTVD through to total depth 4427m MD/4324m SSTVD. The objective of the well is to investigate the extent of the hydrocarbon column below the 160m delineated in Lofin-1 which could not be drilled deeper due to engineering issues.

Lion has a 2.5% interest in the Seram (Non Bula) PSC which is operated by CITIC Seram Energy Ltd (51%) with other co-venturers being KUFPEC (Indonesia) Ltd (30%) and Gulf Petroleum Investment Company (16.5%).

Editing by Johannes Simbolon