Renco, Lion plan more drilling at South Block A PSC

By Alexander Ginting

ASX-listed oil, gas firm Lion Energy Limited and partner plan to drill Jerneh exploration well in South Block A PSC in Aceh province in the second quarter of 2018.

According to Lion, the Jerneh prospect is the largest undrilled structure in onshore northern Sumatra with prospective resources of 64-760 BCF.

The planned well will be drilled to the depth of 1,900 meter with estimated cost of US$6.5 million, Lion said in a presentation released on Tuesday.

Prior to Jerneh drilling, the partnership will carry out drilling in the third quarter of 2017 to appraise Amanah Timur discovery to allow fast track development.

Amanah Timur was spudded in January 2017 and has reached total depth of 347 meters and was later plugged and abandoned after pipe was stuck while dealing with high gas. Key objectives had strong gas, good oil shows and gas flared at surface, the company said.

Lion has 40.7% interest in the block with operator Renco Elang Energy holding the balance.