Release: Lion Energy: Oseil operations update
Monday, June 6 2005 - 01:11 AM WIB
SERAM (NON BULA) BLOCK JOINT VENTURE
June 6, 2005 ? LION ENERGY LIMITED, through its wholly owned subsidiary Kalrez Petroleum (Seram) Limited, holds a 2.5% 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%.
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.
As previously reported, Phase II development drilling continued with Oseil 5, 6, 7 and 8. Oseil 5, 6 and 7 were drilled and temporarily suspended at the top of the main oil reservoir, the Manusela formation, due to operational problems with Underbalanced Drilling Equipment tank storage capacity.
Oseil 6 was re-entered on 8 May and has now completed drilling horizontally through the main reservoir. Oseil 6 reached a total measured depth of 8,683 feet below the drilling rig floor (or 5,438 ft True Vertical Depth below sea level). An unstabilised initial flow rate of 5,520 barrels of oil per day plus 4.6 million cubic feet of gas per day at a flowing well head pressure of 2,403 psi was recorded. The oil rate was increasing and the gas rate decreasing during the flow test and stabilised production rates will be reported at a later date.
The Joint Venture plans to re-enter, drill and complete the suspended well Oseil 7 in addition to Oseil 6, plus sidetrack and complete Oseil 5 and 8, and bring all four wells on production before resuming the remainder of the Phase II development drilling program. (end o release)