Lion Energy Ltd. (ASX: LIO.AX) said April 15 that the Lofin-2 appraisal well in Indonesia reached 5,471 m, just below original estimates of 5,425 m, the initial planned total depth. The well hit hydrocarbons in the Seram (Non Bula) production sharing contract (PSC) area in eastern Indonesia.

Wireline logging is underway to evaluate the openhole section of the Manusela Formation limestone primary objective.

Manusela’s current total depth is 5,871 m. When wireline logging is finished, the well will be flow-tested and potential productive zones will be determined through production logging tools.

The well will be deepened beyond planned total depth to fully appraise the potential hydrocarbon column, if the well is still in hydrocarbons at 5,871 m.

Lofin-2 was spudded on Oct. 31, 2014. It is being drilled to appraise the 2012 Lofin-1 discovery.

Lion is trying to determine how far the hydrocarbon column, delineated in Lofin-1, extends past 160 m. Lofin-1 could not be drilled deeper due to engineering issues, the company added.

Lion has 2.5% interest in the Seram (Non Bula) PSC. CITIC Seram Energy Ltd. operates it with 51% interest. KUFPEC (Indonesia) Ltd. works with 30% interest and Gulf Petroleum Investment Co. works with 16.5% interest.

Offshore