Lion Energy to Explore Acreage in Indonesia’s North Sumatra Basin
Lion Energy along with Bukit Energy Ltd and New Zealand Oil & Gas Ltd will jointly explore an area within Indonesia’s North Sumatra Basin.
The conventional Bohorok PSC is in the southern part of the North Sumatra Basin which has discovered reserves of 25 tcf gas and 1.6 billion barrels of oil and condensate.
As part of the transaction Lion has an option to acquire a 15% interest in the conventional Bohorok PSC; and the partners have the opportunity to acquire a 45% interest in Lion’s unconventional joint study application over a partially overlapping area, Lion said Thursday.
The block is operated by Indonesia Bukit Energy Bohorok Pte. Ltd. with New Zealand Oil & Gas Ltd as co-venturer. The existing PSC holders have recently completed a 206 km 2D seismic survey over the block and interpretation of the data is ongoing. The current plan is to drill a well in fourth quarter of 2015.
Kim Morrison Lion’s CEO noted, ”The synergies from the transaction will result in more efficient exploration and is a key to Lion’s strategy in building a linked conventional and unconventional position in Sumatra. It expands our acreage footprint in the prolific North Sumatran Basin, with Lion already holding a 35% interest in South Block A to the north of the Bohorok area, and the presence of excellent gas markets and existing infrastructure would allow for near-term commercialisation in the event of exploration success.”
Lion holds rights to an unconventional joint study application in the area of the Bohorok PSC. The application followed new regulations covering unconventional hydrocarbons which came into effect in January, 2012. The area is located just to the south of the first unconventional PSC in Indonesia awarded to Pertamina in 2013 and contains key elements essential for prospective unconventional (shale gas/oil and tight gas/oil) acreage.
Preliminary evaluations by Lion indicate highly prospective gas and liquids potential in a number of unconventional plays.