Reserves and Prospective Resources
Lion Energy has an exciting portfolio of opportunities with an attractive mix of producing, appraisal, exploration and study phase projects.
- The Seram (Non Bula) PSC provides existing production with the highly material upside of the Lofin gas condensate discovery;
- The South Block A PSC interest provides material conventional exploration in a world class province including the Jerneh Prospect;
- The Unconventional Joint Study Applications provide TCF/multi hundred’s mmbbl scale prospective resource potential.
Lion also has an active new business program in the dynamic Indonesian oil and gas environment.
A summary of Reserves and Prospective Resources (as at 31st December 2016) for Lion Energy are shown in the following table:
For a detailed table including breakdown by field and prospects please click the table above.
- Reserve estimates have been calculated using the deterministic method. Analysis of performance trends were used to estimate proved developed reserves. The performance trends associated with new well were used to assess how wells scheduled for future drilling would perform for the purpose of estimating proved undeveloped reserves as well as the probable and possible reserves associated with the future wells. Reserves were estimated only to the expiration date of the PSC.
- Includes Undeveloped Reserves which are quantities expected to be recovered through future investments: (a) from new wells on undrilled acreage in known accumulations, (b) from deepening existing wells to a different (but known) reservoir, (c) from infill wells that will increase recovery, or where a relatively large expenditure is required to either recomplete an existing well or install production or transportation facilities for primary or improved recovery projects.
- Undeveloped Probable and Possible reserves are included in this table however it should be noted there is uncertainty on whether these can be recovered prior to PSC expiry in 2019 as they recovery will require significant investment.
- Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent resources have an associated chance of development (economic, regulatory, market and facility, corporate commitment or political risks). These estimates have not been risked for the chance of development. There is no certainty that any portion of the contingent resources will be developed and, if developed, there is no certainty as to either the timing of such development or whether it will be commercially viable to produce any portion of the resources.
- 3C contingent resources have not been calculated for the Lofin Field. The 3C number provided refers to Oseil area only.
- Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery (geological chance of success or GCOS) and a chance of development (economic, regulatory, market and facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. There is no certainty that any portion of the prospective resources will be discovered and, if discovered, there is no certainty that it will be developed or, if it is developed, there is no certainty as to either the timing of such development or whether it will be commercially viable to produce any portion of the resources. For the prospective resources, an oil case has been estimated below the total depth of the existing Lofin-1 ST well.
- Aggregation method. Prospective Resources in this Table have been estimated probabilistically at lead level but combined arithmetically to provide the portfolio number. The aggregate P90 may be a very conservative estimate and the aggregate P10 may be a very optimistic estimate due to the portfolio effects of arithmetic summation.
- Discovered volumes for Amanah Timur discovery are still under evaluation and will require additional appraisal drilling, planned in second half 2017. Pre-drill estimates are shown in table.
- No prospective resources provided for the Unconventional Joint Studies or Joint Study Applications as these have not yet been converted to PSC’s as at October 1 2015.