Lion Energy reported on 30 January 2020 that it is offering a further 10% participating interest in the East Seram PSC located in onshore/offshore North Seram Basin. The company is looking at retaining a final operating interest of 50% in the block, after having previously agreed to farm out 40% stakes to Taiwan's CPC Corp. According to Lion, discussions for the additional 10% divestment are underway.  The farmout deal with CPC has likewise progressed, with the parties having signed a Joint Operating Agreement (JOA) for the PSC in November 2019. Upon JOA signing, Lion received a cash amount of approximately USD 1.3 million as previously agreed. The transaction is pending final government approval, which is expected in Q1 2020. The initial farmout agreement between Lion and CPC was signed on 25 September 2019.  Lion is operating the East Seram PSC via its wholly-owned subsidiary Balam Energy, with a current 60% interest. CPC is set to acquire 40% interest via wholly-owned subsidiary OPIC East Seram Corporation.  The East Seram block was awarded to Lion Energy under the Conventional Oil and Gas Bidding First Round 2018. The block is subjected to gross split fiscal terms and carries a signature bonus of USD 500,000 plus a total commitment for the first three years of USD 900,000. Exploration commitments include G&G technical studies and 500 km of 2D seismic survey. The operator is planning to carry out seismic acquisition in 2H 2020.  Two main proven plays in the block are the Jurassic carbonates of Manusela Formation (proven by the Oseil and Lofin fields) and the shallow Pliocene-Pleistocene sandstones of Fufa Formation (proven by the Bula oil field). Lion has identified 18 prospects and leads in the block, including the MA-7 prospect (P50 prospective resources of 217 MMboe) and the Lofin field extension (P50 prospective resources of 154 Bcfg).    Background Information  The East Seram block was offered under the Conventional Oil and Gas Bidding First Round 2018, via the Direct Offer mechanism. Access to bid documents was scheduled from 19 February 2018 to 27 March 2018, with the clarification forum between 22 February 2018 and 29 March 2018. Bid submission for Direct Offer blocks is due by 4 April 2018. The block is subjected to the Gross Split PSC term which has a government/contractor base split of 57%/43% for oil and 52%/48% for gas. The base split can be further modified by variable components and progressive components depending on the specific status of the block.   The East Seram block covers an area of 6,504 sq km, the majority of which onshore in the eastern Seram Island, with a small portion located offshore. The block is surrounding the Seram (Non-Bula) PSC operated by Citic Resources. Wells located within the block boundary are Wahai 1 (new field wildcat, shelf), Wahai 2 (new field wildcat, onshore), Ceram B 1X (new field wildcat, water depth of 115 m) and Belis 1(new field wildcat, onshore). Other onshore wells located near the eastern side of the shore area (within the Seram (Non-Bula) PSC) are, Metafoten 1, Salas 2, and Salas Barat 1. These three wells are situated in the Seram (Non-Bula) PSC.   The primary exploration targets in the area are Triassic sandstones of the Kanikeh Formation, Jurassic carbonates of the Manusela Formation, Early Cretaceous to Miocene carbonates of the Nief Beds, and Pleistocene sandstones of the Fufa Formation. Recent success in the area has been achieved with appraisal well Lofin 2 (Citic Resources, 2015) which intersected up to 1,300 m of net gas pay in the Manusela Formation, with estimated resources of 2 Bcfg.
Lion Energy reported on 30 January 2020 that it is offering a further 10% participating interest in the East Seram PSC located in onshore/offshore North Seram Basin. The company is looking at retaining a final operating interest of 50% in the block, after having previously agreed to farm out 40% stakes to Taiwan's CPC Corp