SYDNEY (Yosefardi) – Lion Energy reported the recently completed Oseil-26 development well in eastern Indonesia is performing at above pre-drill expectations.
The well was completed on 30 January 2014 and has been producing crude oil at an average rate of 490 bopd. This compares with pre-drill predicted initial production of 300 bopd.
Oil production from Oseil and surrounding oilfields has average 2831 bopd (71 bopd net to Lion), an increase of 20% from approximate 2350 bopd prior to Oseil-26 coming on line. Production currently exceeds guidance production of 2500 bopd in Lion’s prospectus issued on 6 November 2013.
The Oseil-21 development well, due to spud this week, is designed to exploit undrained oil reserves on the western flank of the Oseil-2 fault block. Drilling is expected to take about 90 days and, if successful, the well should commence production in May 2014.
Following the Oseil-21, the joint venture plans to drill the Lofin-2 well to appraise the exciting Lofin-1 discovery made in 2012. Current scheduling has the well spudding in July 2014 following the completion of Oseil-21.
Lio, via its wholly owned subsidiary Lion International Investment Ltd, holds a 2.5% participating interest in the Seram (Non-Bula) block renewal production sharing contract (PSC), located onshore Seram island in eastern Indonesia.