Australia's Lion Energy Ltd announced Friday that the recently completed Oseil-26 development well in the Seram (Non-Bula) Production Sharing Contract (PSC) in Seram Island, eastern Indonesia is performing at above pre-drill expectations.
The well was completed Jan. 30 and has been producing crude oil at an average rate of 490 barrels of oil per day, or bopd, (12.5 bopd net to Lion’s interest). This compares with pre-drill predicted initial production of 300 bopd.
Oil production from Oseil and surrounding oilfields has averaged 2,831 bopd (71 bopd net to Lion), an increase of 20 percent from the approximate 2,350 bopd prior to Osiel-26 coming on line. Production currently exceeds guidance production of 2,500 bopd in Lion’s prospectus issued Nov. 6, 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 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 Osiel-21.
Lion’s CEO, Kim Morrison, said: “We are delighted with the performance of the Seram Project, which continues to surprise on the upside.”
“While a 2.5 percent interest may seem modest, it still makes a meaningful contribution to our company,” he said. “We are optimistic that the Osiel-21 development well will further enhance production and look forward to the high-potential Lofin-2 appraisal well later in the year.”
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