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Lion Energy to drill Amanah Timur-1 well in South Block A PSC in Q1 2015

JAKARTA (Rambu Energy) – Lion Energy, an Australian listed oil and gas company, said it is currently preparing to drill the Amanah Timur-1 well to test he Paya Bili prospect in South Block A in North Sumatera. The drilling of the well is scheduled to be carried out in the first quarter 2015.

The company planned to drill a shallow well, with a target to reach 700 meters measured depth.

The purpose of the drilling program is to assess the reservoirs productive in a pre-1940 oil field, as well as evaluate untested deeper sandstone reservoirs which are known to be well developed in the area.

The prospect is lcoated on a productive trend and has near term commercialization potential. The company is currently selecting a site location as well as rig tenders, the company said.

Lion Energy has a 35 percent participating interest in the South Block A PSC through its wholly owned subsidiary KRX Energy Pte Ltd.

The block is centrally located in the North Sumatera Basin and contains large gas and overlooked oil volume potential.

The South Block A is divided ino two separated blocks, the western block known as Area 1 and covers an area of 1,256.5 square kilometers and the smaller Area 2. The Area 2 extends over the coastal boundary with an offshore portion and covers an area of 637 square kilometers.

The other parties that hold interests in the block are Renco Elang Energy Pte Ltd (51 percent) and PT Prosys Oil & Gas International (14 percent). The block is operated by Renco, a subsidiary of ASX listed Peak Oil & Gas.

Lion also said the drilling of Lofin 2 well in Seram (Non Bula) PSC, in which the company holds 2.5 percent working interest, is making good progress. The drilling has now reached 764 meters measured depth with 20” casing set and cemented, with an objective to reach Manusela Limstone target in late January 2015.

The company has expressed its optimism about the prospect of the underexplored block, citing a discovery by Premier Oil recently at the Matang 1 area (100-400 billion cubic feet of gas), which is adjacent to the South Block A PSC.

The company expects to flow its gas to the newly-developed Arun-Medan gas pipeline which passes through the block. (*)

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