Key Highlights
- Rig secured for 12 million barrel (P50)(1) Bula Karang-1 exploration well in the East Seram PSC within budget
- Bula-Karang-1 well has an estimated 38% probability of success(1)
- Modern Schramm TDX-200 hydraulic rig selected, ideal for planned deviated well design
- Land use permit obtained and land sharing agreement secured
- Lion retains a 45% interest whilst being carried for 88% of estimated well cost
- Other key service tenders in progress (directional drilling, cementing, drilling fluids, wireline services)
- Targeted spud date: July 2026
Lion Energy has provided an update on progress at its Bula Karang-1 drilling project.
Contracting
Lion has awarded and signed a drilling contract with Silver City Drilling, a leading Australian oil and gas drilling contractor. The contracted rig, SCD-20, is a hydraulic 900HP Schramm Rotadrill TXD200 unit, complete with ancillary equipment is secured within planned budget. The rig is particularly suited for directional drilling, and its small footprint reduces any environmental impact. The other benefits of this modern-designed rig include:
- Fuel efficiency compared to conventional rigs
- Reduced manpower requirement
- Improved safety features
- Integrated top drive
The rig is currently working in East Java, Indonesia, and has an impressive track record of reliability and safety in recent operations.
The rig is ideal for the drilling of Bula Karang -1 which is planned as a deviated, relatively shallow well spudding from an onshore location and deviating approximately 1000m laterally offshore. This allows Lion to test the crest of a seismically defined carbonate reef target at approximately 550m below sea level. The chosen rig has a hydraulic top drive and key safety features including hands free hydraulic pipe handling equipment, hydraulic weight on bit control and a rotation brake for directional drilling. Other mechanical specifications that are well suited for our planned deviated well design include the hook load (90 ton) and rotary torque (90RPM -17,500 ft/lbs).
Tendering processes are ongoing for other services including directional drilling, cementing and drilling fluids as well as wireline services.
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Source: Lion Energy
