Lion told the market on Friday that the Neif Utara A-1 well, being drilled in the Seram (Non Bula) production sharing contract, was targeting a potential 34 million barrels of oil in place, of which 10.2 million barrels were estimated to be recoverable.
Drilling is expected to take 42 days to reach a total depth of 7309 feet.
Lion said the Neif Utara A prospect was an elongated thrust and reverse fault controlled four-way dip closed anticline, at the southeast end of the Oseil high trend, along the Oseil East Neif anticlinorium.
The primary target is the Manusela Carbonate, interpreted to be similar in reservoir characteristics to the nearby Oseil oilfield, which is producing around 4000 barrels of oil per day.
The Seram (Non Bula) block is Lion's sole petroleum asset after it sold out of five leases in the Gulf of Mexico in November.
The company is the smallest stakeholder in the block with a 2.5% interest, while operator CITIC has 51%, Kufpec has 30% and Gulf Petroleum Investment has 16.5%.
