Spud date of Amanah Timur-1 delayed

By Romel S. Gurky

Lion Energy Limited stated that it had been informed by the Operator of South Block A PSC in Aceh Province that the anticipated spud date for Amanah Timur-1 has been delayed as a precautionary measure due to the combined impact of weather conditions and the recent earthquake in the region.

The company announced in a press release on Monday that the rig contractor, Pertamina Drilling Services Indonesia (PDSI) was in the process of rigging up when the recent earthquake struck. The impact at the drill location, which is approximately 200 km from the epicenter to the northwest, was no more than a tremble. However, over the weekend PDSI, supported by the joint venture, have decided to rig down and add additional fill material and further compaction, as a precautionary measure to ensure the rig is on a stable base in the event of further geological activity.

The decision was taken in conjunction with assessment of the heavy rain that has impacted road and location conditions leading up to the earthquake. It is anticipated the spud date will be deferred 7 ? 10 days. There will be a minimal cost impact anticipated to the joint venture in the costs associated with the further site works.

Lion has a 40.7 percent interest in the well.

Kim Morrison, Lion?s CEO commented: ?Whilst a further delay is disappointing, this is a common sense approach by all involved in the drilling program. At minimal cost, it is a precautionary step in light of compounding issues of weather and an earthquake, to ensure the site is adequate for the safe drilling of this exciting well.?

Editing by Benget Besalicto ST