Lion Energy signs rig contract for Bula Karang-1 exploration well

Lion Energy has entered into an statement with Silver City Drilling for the usage of the SCD-20 rig to drill the Bula Karang-1 exploration good successful the East Seram Production Sharing Contract area, Indonesia.

The commencement of drilling is scheduled for July 2026, with the rig secured wrong the outlined budget.

The good volition people an unrisked P50 prospective assets estimated astatine 12 cardinal barrels (mbbl) successful its superior carbonate objective, with the imaginable assigned a 38% geological accidental of success.

Lion Energy holds a 45% moving involvement successful the task and is being carried by its spouse for 88% of the estimated good cost, resulting successful a constricted superior outlay for the company.

Lion Energy enforcement president Tom Soulsby said: “Securing the rig wrong fund is simply a cardinal milestone arsenic we determination toward drilling Bula Karang-1. The imaginable is simply a shallow carbonate reef operation with the imaginable to big worldly lipid volumes, and importantly provides vulnerability to a broader 50 cardinal tube (P50) combined unrisked Prospective Resource successful Bula Bay.”

“With spouse backing covering the bulk of the good cost, Lion retains a 45% interest, providing beardown leverage to occurrence portion maintaining a debased superior commitment. In a occurrence case, adjacent infrastructure provides a wide pathway to rapid, low-cost improvement and aboriginal cashflow. Bula Karang-1 is simply a high-impact, capital-efficient exploration accidental and an important measurement successful unlocking the imaginable of the East Seram PSC.”

The planned Bula Karang-1 good volition beryllium drilled arsenic a deviated well, starting from an onshore tract with a lateral deviation of adjacent to 1,000m offshore to intercept the crest of a seismically identified carbonate build-up astatine a extent of astir 550m beneath oversea level.

Secondary targets see imaginable lipid zones wrong overlying sandstone reservoirs.

The SCD-20 rig is equipped with a hydraulic apical thrust system, hydraulic tube handling, and directional drilling capabilities. It besides includes a 90-ton hook load and 17,500 ft/lbs of rotary torque to conscionable the good plan requirements.

The rig is presently operating successful East Java, Indonesia.

Regulatory advancement for the task includes support for tract use, submission of the biology program to authorities authorities, and execution of a onshore sharing agreement, with ceremonial onshore registration planned for this period successful Bula.

Silver City Drilling finalised the tract survey past month, which included borehole investigating of some the drill determination and entree road.

Contracting for different cardinal services, including directional drilling, cementing, fluids, and wireline, is ongoing.