Release: Lion Energy: Oseil operations update
Wednesday, May 18 2005 - 03:10 AM WIB
April 18, 2005 ? Lion Energy Limited, through its wholly owned subsidiary Kalrez Petroleum (Seram) Limited, holds a 2.5 percent shareholding in the Seram (Non Bula) Block Production Sharing Contract. The major shareholder and Operator of the Joint Venture is KUFPEC (Indonesia) Limited with 97.5 percent.
The block contains the Oseil oilfield which has produced approximately 2.5 million barrels of crude oil since field startup in January 2003. Initial production was from 3 wells, Oseil 1,2 and 4, but now includes production from Oseil 3 ? the first of the Phase II development wells being drilled based on 3D seismic data.
Phase II development drilling continued with Oseil 5 and 6, as reported on 6 April 2005. Both wells were drilled and temporarily suspended at the top of the main oil reservoir, the Manusela formation, due to an initial lack of capacity in the Temporary Production Facility (TPS) which is in use while the Main Production Facility is shutdown for repairs and maintenance. The TPS has now been modified to enable it to handle increased flows during underbalanced drilling operations.
Since the last report Oseil 7 was successfully drilled and temporarily suspended at the top reservoir level on 19 April. Oseil 8 spudded on 20 April and drilled to 6,641 feet MD before the drillstring became stuck and was only partially recovered during fishing operations. The Oseil 8 well was suspended and will be sidetracked at a later date.
Oseil 6 was re-entered on 8 May and is currently drilling horizontally through the main reservoir. The Joint Venture plans to re-enter, drill and complete the suspended wells Oseil 5 and 7 in addition to Oseil 6, plus sidetrack and complete Oseil 8, and bring all four wells on production before resuming the remainder of the Phase II development drilling program. This will significantly increase the field?s potential production capacity, but actual production will be restricted by the processing capacity of the TPS until the Main Production Facility is brought back on line later this year. (end of release)