10 November set as tentative spud date for Bula Karang-1 exploration well
Australia-listed Lion Energy is set next month to spud its Bula Karang-1 (BK-1) exploration well on the East Seram production sharing contract offshore Indonesia.
The wildcat, planned to be drilled as a deviated well from an onshore location, is targeting an estimated unrisked prospective resource of 12 million barrels of oil.
The BK-1 well is expected to be spudded on 10 November by the SCD-20 rig, with the drilling unit estimated to arrive at the well site on 8 November, Lion said on Monday.
The BK wildcat was originally intended to be spudded in July this year. The operator attributed the four-month delay to the time required to secure necessary approvals and finalise logistical arrangements.
Rig mobilisation of compatriot Silver City Drilling’s unit commenced on 13 October, with the rig expected to arrive at Bula, Seram Island, on 27 October, followed by a 10 to 14-day period of moving, assembly and rig up.
Drilling and evaluation of the BK-1 well is expected to be completed by early December, Lion added.
The operator in previous disclosures said the programme will include a two-phase testing strategy, where initial testing aims to establish fluid type and reservoir deliverability.
A smaller workover rig to complete the well and undertake an extended well test to assess commercial development options in the event of a discovery may be mobilised in early 2027 based on the drilling results, Lion added.
“With site preparations complete and mobilisation underway, we look forward to testing this significant oil prospect and updating shareholders as drilling progresses through November,” Lion Energy chairman Tom Soulsby commented on Monday.
The well’s estimated cost is approximately US$6.7 million. Taiwan’s CPC Corporation subsidiary OPIC is set to fund 88% of the drilling costs, up to a cap of US$5.6 million, based on a farm-out arrangement which cleared government approvals in June.
OPIC holds the majority 55% interest in the PSC with Lion’s share standing at 45% following the farm-out.
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