Lion Energy Limited (ASX:LIO) has achieved strong gas flow from clean-up on its Lofin gas discovery test.

Lofin, in Indonesia, is part of the Seram (Non-Bula) production sharing contract, in which Lion has a 2.5 per cent participating interest.

Well re-entry was successfully achieved, with gas rates up to 14.8 million standard cubic feed per day (mmscfd) on an 80/64″ choke, the maximum choke size during this well clean-up phase of the testing program.

The water leg was successfully isolated during the re-entry process by setting a cement plug.

The original Lofin 2 well in 2015 indicated a large reservoir section of 1,300 metres.

Lion’s Chairman Tom Soulsby said the company was pleased with initial flow rates during the clean-up phase, which confirmed good deliverability from the Lofin-2 well.

Soulsby continued: “This is a key step towards commercialisation and unlocking the value of the 1.5 trillion cubic feet (2C) contingent gas resource.

“A successful well test will complement Lion’s 60% exposure to look-a-like structures in our adjacent East Seram PSC.”

Following the initial 2-3 day shut-in period to monitor pressure build-up, which commenced on 13 February 2023, the well will be re-opened for the multi rate flow test period.

This will be followed by a more extended shut-in period to monitor pressure build up and help confirm reservoir volumes.