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Oseil proven oil reserves upgraded

By  AOG Staff Tuesday, 01 March 2016 00:17
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Proven oil reserves in the Seram (Non-Bula) PSC increased by 28%, after taking into account 2015 production and the success of the 2014-15 development drilling program, said Lion Energy.

The 31 Dec 2015 reserves report by US-based engineering firm DeGolyer & MacNaughton estimates proven (1P) oil reserves at 4.88 MMbbl. After taking into account 2015 production of 1.22 MMbbl, the proven reserves estimate for the Oseil fields have effectively increased by 1.36 MMbbl.

Production from the Seram PSC remains strong at approximately 4200 bo/d and the joint venture is implementing aggressive cost-saving measures, including suspending future development drilling. This is anticipated to allow increased free cash flow from the Seram PSC.

Lion CEO Kim Morrison said, “The increase in Oseil area reserves by firm DeGolyer & MacNaughton is a pleasing outcome and reflects the positive development drilling outcome on the Oseil field in recent times.

“At the same time, the operator is responding to the current oil price environment and prudently reducing costs while continuing to work on development options for the exciting Lofin gas discovery, including ongoing engagement with relevant authorities on extension of the PSC beyond 2019.”

Lion has a 2.5% interest in the Seram (Non Bula) PSC, which is operated by CITIC Resources.

Image: Map of Oseil oil fields / Lion Energy

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