Lion Energy announces spud of Amanah Timur-1 exploration well in North Sumatra Basin

Lion Energy has announced the spud of Amanah Timur-1 (AMT-1) exploration well located in the North Sumatra Basin.

The well is currently preparing to set 9 5in / 8in casing at nearly 78m prior to drilling ahead in an 8.5in hole.

The company expects that AMT-1 drilling and its analysis will take around ten days. The drilling will be carried to a total depth of nearly 570 million kilobytes, while the test programme will take another ten days.

Lion Energy CEO Kim Morrison said: “The drilling of Amanah Timur represents a key milestone for Lion. We have led the technical effort on this prospect, which represents a highly attractive opportunity with near-term cash flow potential.”

The Amanah Timur prospect is situated within a productive hydrocarbon zone. The tested well targets the Keutapang sandstone reservoirs.

In near proximity, these reservoirs have delivered more than 600 million barrels of oil (mmbbl), 2.2tcf gas and 50mmbbl condensate.

Gross recoverable prospective resources are estimated to be 2.0mmboe-4.8mmboe-10.7mmboe (P90-P50-P10).

The Amanah Timur-1 exploration well is estimated to cost $1.3m, including provision for up to three production tests.

Several sandstone reservoirs are being targeted, including a shallow objective which had oil production in pre-1930 wells that are in close proximity.

Lion Energy has a 40.7% interest in South Block A PSC, in which the Amanah Timur is located. The remaining 59.3% interest along with operatorship lies with Renco Elang Energy.

Located centrally in the North Sumatra Basin, South Block A PSC is segregated into two different blocks. The Area 1 includes an area of 1,165km², while Area 2 comprises a small offshore portion with an area of 414km².

Around 80 known oil and gas fields are located in the North Sumatra Basin, thereby making it one of the prolific hydrocarbon locations worldwide.

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Image: Location of South Block A PSC. Photo courtesy of Lion Energy.