Lion advances growth plans
- Secured 100% rights to exciting conventional area in Eastern Indonesia
- Progress on appraisal drilling of Amanah Timur discovery
- Gross production from the Seram PSC for the quarter was 285,585 barrels (average 3,138 bopd)
- US$464,440 received during quarter from May 2017 lifting
Lion Energy Limited (“Lion” or “Company”) is pleased to report significant advances in our new business activities including securing 100% rights to an Eastern Indonesia area with significant oil and gas potential. Good progress was made in South Block A PSC with a planned September spud of the Amanah Timur-2 appraisal well. Production continued from the Oseil oilfield in the Seram PSC, with revenue received in the quarter from the crude oil lifting in early May of US$464,400 prior to First Tranche Petroleum payment.
In the South Block A PSC (Lion 40.7%), the Joint venture advanced appraisal drilling plans building on results and lessons from the Amanah Timur-1 discovery well. The well spud is planned for September 2017.
Production from the Seram PSC continued to perform solidly during the quarter. Average daily oil production was 3,138 bopd for the quarter (74 bopd net to Lion after deducting government take), down 8.8% from 3,480 bopd the previous quarter. Production at quarter end was 2,830 bopd as a result of natural decline and optimization adjustments. Gross crude oil production for the quarter was 285,585 bbl (6,738 bbl net to Lion), with operating costs for the quarter of US$14.62/bbl. Proceeds of US$464,440 from the early May 2017 crude oil lifting were received in June 2017. A lifting of around 400,000 bbl is expected late in the current quarter.
At the end of the quarter, the Company had cash of US$1.2mil.
Lion’s CEO, Kim Morrison, noted “Lion made good progress on building our Indonesian position in Indonesia, benefiting from our on-ground presence and access to the attractive deal flow. We are pleased with the South Block A PSC appraisal plans and continue to advance some exciting production opportunities.
Finally, I would like to welcome existing and potential investors to visit our updated webite (www.lionenergy.com.au), which went live on 26 July 2017, to learn more about our projects.”
