Lion Energy’s Amanah Timur-1 well continues to deliver significant gas and oil shows

On Jan 13, 2017

Current depth of 347m KB, circulating to condition gas-cut mud and increase mud weight
11m of well-developed sands penetrated in the ‘700’ objective, with very high gas recorded (1605 units /32%) and some oil fluorescence
The joint venture has elected to run wireline logs to evaluate the encouraging shows in the section drilled to-date and then to run 7” casing prior to drilling ahead to deeper objective intervals

Lion Energy is pleased to announce that the Amanah Timur-1 (AMT-1) exploration well, located in the South Block A PSC in the prolific North Sumatra Basin, is at a depth of 347m and circulating to raise mud weight prior to running open hole wireline logs. The ‘700’ sandstone objective encountered from 336m to current depth had strong gas shows and some oil fluorescence. Drilling was halted due to the need to weight-up the mud due to the increased gas levels.

Since the last announcement by Lion on 11 January 2017, the well has drilled from 323m to the current depth of 347m KB. A shale dominated section was encountered from 323m KB to 336m KB with some thin interbedded sandstone intervals showed high gas and some oil shows. The mud weight was raised from 1.16 SG to 1.32 SG and subsequently 1.56 SG to control sloughing pressured shales and high gas while drilling the section. The “700” sandstone objective is provisionally interpreted at 336m approximately 58m high to prognosis. Gas increased rapidly from a background of 150-200 units on entering the objective with a peak of 1271 units/25.4% at 338m KB with a composition breakdown of C1: 216,825ppm, C2: 10,833ppm, C3: 2215ppm, iC4: 950ppm, nC4: 771ppm, iC5: 659ppm, nC5: 160ppm. Gas increased through the unit with peak of 1606 units/32% (C1-C5) from 344m and this resulted in the mud being gas-cut. Some oil shows described with up to 10% spotty pale yellowish gold direct fluorescence, very slow streaming pale yellowish gold cut, yellowish brown crush cut flour, trace residual cut, nil to weak oil odour.

The estimated well cost of US$1.3mil (Lion net $0.53mil) is being reviewed in light of the decision to run the provisional intermediate casing.

Lion’s CEO, Kim Morrison, noted:

‘The well continues to deliver significant gas and oil shows that exceed our expectations. The decision to condition the hole and run wireline logs at this time, followed by setting 7” casing prior to drilling ahead to the remaining objectives, is a prudent one and secures the zones of interest already encountered for further evaluation with planned testing later in the well program’.