Lion updates Seram (Non Bula) activities
Monday, September 15 2008 - 02:17 AM WIB
The block contains the Oseil oilfield which has since initial field start-up in January 2003, produced cumulative crude oil production of 7,243,303 barrels as at June 30 2008.
OPERATIONAL DETAIL
Nief Utara A-1
Exploration well Nief Utara A-1 was spudded on February 28th 2008, with rig release on May 9th 2008 after the well flowed oil at the rate of approximately 640 BOPD.
The approval of the Indonesian government was received on July 31st 2008 and the well was placed on production on August 17th 2008.
An initial conservative production rate of between 100 and 150 barrels per day has been incrementally increased to between 400 - 450 BOPD. Water cut has been closely monitored during the process of raising the production rate. The water cut remains less than 1%.
Further rate adjustments are envisaged until a stabilized rate is reached. Water ingress is the controlling factor and needs to be closely monitored whilst moderate rate increments are made.
Nief Utara A-2
Delineation well Neif Utara A-2 spudded on May 19th 2008, following the completion of discovery well Nief Utara A-1.
Nief Utara A-2 is located some 1,000 metres SE of Nief Utara A-1 well bottom hole location.
Nief Utara A-1 well failed to encounter a water contact. Nief Utara A-2 well trajectory was intended to penetrate the water contact, to assist in reserves evaluation of the Nief Utara A structure and this was accomplished.
The primary target of Nief Utara A-2 was the Manusela Carbonate, with the secondary target the lower part of the Lower Nief carbonate in which an indication of oil show was observed from drill-cuttings in the Nief Utara A-1 well.
The rig was released on August 9th 2008 after the well reached total depth of 2,126.9 meters MD (6,975 feet MD) or 1,825.7 meters TVD SS (5,990 ft TVD SS).
The well was subsequently tested with the final rate 372 BOPO with a 12% water cut. The unstable rate during testing suggests the well may not have cleaned up. Application has been made to the Indonesian government to place the well on production and at the time of this release that approval had not yet been received.
Nief Utara A-3
Delineation well Nief Utara A-3 spudded on August 20th 2008 and is a deviated well targeting a bottom hole location some 1,301.4 meters (4,270 feet) from the drilling location in an approximate WSW direction.
The planned depth of the well is 2,475.8 meters MD (8,123 feet MD) or 1,737.3 meters SS (5,700 feet SS).
The primary target is the Manusela Carbonate and the secondary objective is the Lower Nief formation, which whilst shows have been recorded in Nief Utara A-1 and Nief Utara A-2 remains untested. The joint venture is considering methods of completion to enable testing of Lower Nief formation in the future.
Nief Utara A-3 well is currently drilling.
Overview Nief Utara A
The Neif Utara A prospect is an elongate thrust and reverse-fault controlled four way dip dosed anticline, situated at the southeast end of the Oseil high trend, along the Oseil - East Neif anticlinorium.
The primary target is the Manusela Carbonate, interpreted to be similar in reservoir characteristics to the nearby Oseil oilfield, which is currently producing at approximately 3,900 BOPD, with cumulative production to 30th June 2008 of 7,243,303 barrels of crude oil.
For the Nief Utara A prospect, deterministic IOIP was initially estimated at 34 MMSTBO, and reserves at 10.2 MMSTBO using a 30% recovery factor.
Based on the results from Nief Utara A-1 and Nief Utara A-2, IOIP has been upgraded to 41 MMSTBO for the Neif Utara A prospect, with 2P reserves at 12.3 MMSTBO using a 30% recovery factor.
Dawang-1
On July 14th 2008, the Company announced the spudding of exploration well Dawang-1
The Dawang-1 well is located approximately 25 kilometres southeast of the Bula Oilfields.
The rig was released from Dawang-1 on August 8th 2008 after the well reached TD of 655.3 meters MD (2,150 feet MD) or 644.9 meters SS (2,116 feet SS).
Electric logs indicated a gas zone across the interval 433.7 - 439.5 meters MD (1,423 - 1,442 feet MD)in the Matafoten A10 sand.
Preliminary reserve estimates (base case) of the gas reserve indicate potential gas in place of 3.62 BCF, with a recoverable reserve of 1.81 BCF based upon a 50% recovery factor.
The well was temporarily suspended pending testing when a suitable rig becomes available.
The deeper seismic anomaly at the Base Fufa level could not be tested in this well. The joint venture is considering a follow-up well, Dawang-2, to test the Matafoten in the downthrown fault block to the west of Dawang-1 and this well Will also test the Base Fufa objective.
The potential gas reserve discovered in this well is relatively small and in an area where no commercial market for the gas currently exists. Flow testing is required to fully evaluate this discovery.
East Nief-1
The 750 HP rig ABS #2 began moving from Dawang-1 to East Nief-l on August 6th 2009.
East Nief-1 was drilled in 1988 to a TD of 6,600 ft RKB and temporarily suspended after six (6) DST?s were conducted, several of which recovered oil.
In 1988 the Manusela carbonate was not well understood. Subsequent wells at Oseil and Nief Utara A have provided the joint venture the opportunity to observe the formation during drilling (to continually modify drilling techniques) and during production (with over 7 million barrels produced from Oseil since the field was placed on production).
The acquisition of the 3D seismic over the Oseil field has also enabled the joint venture to re-interprete the East Nief closure.
Preliminary estimates of oil in place are 413 MMbbls and applying a 23% recovery factor recoverable reserves are estimated at 95 MMBBLS.
The purpose of the re-entry at East Nief-1 is to produce oil under test, using an downhole Electric Submersible Pump (ESP) from the Manusela Carbonate formation.
The drilling rig is currently being demobilized from the East Nief-1 well, having completed the work program and installed the ESP. When the rig has been fully demobilized, testing will commence.
PRODUCTION
Production during July 2008 steady at 3,910 BOPD.
YEAR 2008 |
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| MONTH | CRUDE OIL (BOPM) | CRUDE OIL (BOPD) | HSFO (BOPM) | NAPTHA (BOPM) |
| JUNE 08 | 117,630 | 3,921 | 87,557 | 5,911 |
| JULY 08 | 121,210 | 3,910 | 98,273 | 6,540 |