Release: Oseil Phase II Development update
Tuesday, October 19 2004 - 06:30 AM WIB
October 19, 2004 -- LION ENERGY LIMITED, through its wholly owned subsidiary Kalrez Energy 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 1,997,459 barrels of crude oil to 31st August 2004, after initial field startup in January 2003, from the three existing welts, Oseil #?s 1, 2 & 4.
The Seram Joint Venture parties have agreed an aggressive Work Programme and Budget (WP&B) for 2005 with the objectives of:
- Lifting oil production to ~ 17,000 barrels of crude oil per day by mid 2005.
- Increasing Block reserves by drilling up at least two satellite structures to the Oseil oilfield.
- High-grading existing exploration prospects in the Block to drillable category, with a seismic programme.
The 2005 WP&B requires approval by the Indonesian government.
DETAILS OF THE 2005 WP&B
1. Development Drilling
Up to 16 development wells have been included in the programme, comprising 12 wells to be drilled in the Oseil structure from locations of existing wells Oseil 2 & 4. The directional wells are engineered to maximize horizontal section within the productive Manusela reservoir to maximize production rate and reserves recovery per well.
In addition, 4 wells are intended to access oil reserves in two satellites structures delineated by the Oseil 3D seismic acquired over the oilfield in 2001 - 2002.
The first 3 of these 16 development wells have been approved by BPMIGAS as part of the 2004 Work Programme and the first well, Oseil 3, is due to start drilling later this month.
2. Seismic Acquisition
300 kms of 20 seismic are planned, to high-grade existing prospects with possible oil in place (OIP) of 2,176.7 MMBO and recoverable reserves of 1,349.1 MMBO, and upgrade four leads to prospects.
In addition, a 46 line kms 3D swath seismic programme is planned to high-grade another Oseil satellite structure with possible OIP of 39 MMBO. (end of release)