Seram production set to grow with further development drilling underway
Thursday, April 30 2015 - 09:17 AM WIB
ASX-listed Lion Energy Limited announced on Thursday the gross crude oil production from the Seram Project for the first quarter of the year was 2856 bopd (71 bopd net to Lion?s 2.5% interest). Revenue of US$408,118 was received from a lifting of 305,521 barrels of crude oil made in December 2014.
A new phase of development drilling commenced with the spud of Oseil-27. At quarter end the well was drilling ahead at 933m MD (654m ssTVD).
Lion has revised its projections for the 2015 calendar year to 2900 bopd average, above the forecast of 2500 bopd average used in the 2014 calendar year.
The steady uptrend in production has been maintained into 2015 and a positive result from the current development well drilling at Oseil-27 should ensure this trend continues.
Crude oil available for lifting at March 31, 2015 was 244,688 barrels. A lifting of approximately 350,000 barrels is scheduled for mid-May 2015, with receipt of funds net to Lion approximately 35 days thereafter.
Meanwhile, the Lofin-2 appraisal well in the Seram PSC (Lion 2.5% interest) showed positive indications of a significant gas/liquids accumulation. Post quarter end, the well reached a depth of 5471m MD (5348m ssTVD) and wireline logs, pressures and samples obtained have resulted in a decision to drill deeper to fulty penetrate the potential hydrocarbon column. It is planned for the well to be flow tested after the revised TD has been reached.
Lion, via its wholly owned subsidiary, Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) Block Renewal Production Sharing Contract, located onshore at Seram Island in eastern Indonesia. The major equity holder and operator of the joint venture is CITIC Seram Energy Ltd (51 percent). Other partners are KUFPEC (Indonesia) Ltd (30 percent) and Gulf Petroleum Investment (16.5 percent).
Lion made a major step forward with its conventional/unconventional linked strategy during the quarter, with the award of two unconventional joint studies. The studies are located in the world-class hydrocarbon provinces of the North Sumatra and Central Sumatra Basins and cover a total area of 7165km2. The studies are expected to take around eight months and will confer upon Lion and its partners a priority right to production sharing contracts.
Lion?s CEO, Kim Morrison noted ?Lion achieved a number of key milestones during the quarter and is well positioned to build on this success throughout the remainder of 2015. The award of the unconventional joint studies is an important step in building an impressive unconventional acreage position in Sumatra. We are also particularly encouraged by the results of the Lofin-2 well, which support a potentially significant hydrocarbon column and we look forward to the planned testing program.?
Editing by Johannes Simbolon