Lion Energy today provides the following update on the testing of the Lofin-2 gas well as part of the ongoing evaluation of the 1.5 TCF1 (2C) Lofin gas discovery in the Seram (Non-Bula) Production Sharing Contract (“PSC”) and the subsequent completion of the well, in readiness for future commerciality. Lion has a 2.5% participating interest in the PSC.

Highlights

• Testing program at Lofin-2 well in the 1.5 TCF1 Lofin gas field completed on 4 March 2023 with flows up to 14.8mmscfd recorded.
• A final well completion (installing casing string and tubing) was carried out, followed by an acid cleanout of the producing formation, then a cleanup flow to flowback the spent acid was completed on 15 June 2023 and the rig officially released.

The Operator is now preparing to conduct an extensive 4 rate flow test of the completed well.

Tom Soulsby, Lion’s Executive Chairman commented, 
"The final completion of the Lofin-2 well is a major step towards commercialisation of the 1.5 TCF (2C) Lofin structure and enables the Operator to move forward with negotiations with identified potential buyers. The successful well test also complements Lion’s 60% exposure to look-alike structures in our adjacent East Seram PSC. We now move to the testing phase of the completed well, commencement is expected to start soon."

Testing and Completion Overview

The objective of the Lofin-2 testing operations was to isolate the deep-water leg in the well and determine the reservoir hydrocarbon fluid characteristics and the deliverability of the target Manusela limestone. All objectives were met with successful outcomes.

The test string was run in the Lofin-2 wellbore on 4 February and the testing tool opened for an initial clean up period on 8 February. Gas to surface was achieved following controlled flow back of the water cushion/completion fluid. Rates of up to 14.8 mmscfgd were recorded on the 80/64 inch choke with 800 psi well head pressure (WHP). The final test before first shut-in period was at a 16/64 inch choke with a rate recorded of 11.53 mmscfd/58.6 bcpd (37 API), less than 1 bwpd (representing completion fluid) with 4150 psi WHP. Only 3% CO2 was recorded in the gas. Tested interval was at 15155 feet measured depth (MD) –16656 feet MD (4619-5077m MD).

The completion involved running a 5 inch & 7-inch chrome casing liner assembly, set at 15,217 feet and 3- 1/2 inch chrome production tubing. Chrome casing and tubing are manufactured from an alloy containing a high proportion of chrome, to safely withstand corrosive fluids. The completion was successfully run.

Lion is an Indonesian focused oil and gas exploration & production company. It has two conventional PSC’s, the producing Seram PSC and exciting South Block A PSC containing the Amanah Timur discovery, rights to an large highly prospective conventional area in Eastern Indonesia and is an early mover in the unconventional oil and gas industry.

KeyFacts Energy: Lion Energy Indonesia country profile