Seram production ahead of expectations
WEST PERTH, Australia -- Lion Energy reported June 3 that the operator of the Seram (Non-Bula) PSC, in which Lion has a 2.5% interest, has completed a crude oil lifting of 357,786 bbl (8,944 bbl net working interest to Lion).
Based on the sales price of $94.09/bbl, this will generate revenue to Lion of approximately AUD 850,000 net of all Indonesian government taxes and entitlements. With three liftings expected for the year, this places the company in a good position to exceed its revenue forecast of AUD 2.2 million.
“We continue to be delighted by the solid production performance from the Seram Project, which is exceeding our production forecasts. We now look forward to the drilling of the Lofin-2 appraisal well, which has material upside potential for Lion,” said Lion’s CEO, Kim Morrison.
The Oseil fields are currently producing over 3,100 bopd (78 bopd net working interest to Lion), versus a full year estimate of 2,500 bopd. This is supported by the recently completed OS26 and OS21 development wells, which are producing 600 bopd and 560 bopd, respectively.
The block contains the Oseil oilfield and surrounding structures that have produced cumulative crude oil production of 12,439,718 barrels since the initial field start-up in January 2003 through to May 26, 2014.
Lion, via its wholly-owned subsidiary, Lion International, holds a 2.5% participating interest in the Seram PSC, located onshore Seram Island in eastern Indonesia. The major equity holder and operator of the JV is CITIC Seram Energy 51%. Other partners are KUFPEC 30% and Gulf Petroleum 16.5%.