Lion Energy Ltd. is ramping up preparations for its planned drilling at its Bula Karang-1 project in Indonesia, commencing well pad and access road construction ahead of scheduled drilling in August.
The update marks a transition into the field execution phase for the Bula-Karang-1 exploration well, located within the East Seram Production Sharing Contract (PSC) on Seram Island.
Lion has locked in all major drilling and support services contracts, tapping both international and local Indonesian contractors for directional drilling, wireline, cementing, and fluid services.
The Indonesian authorities have officially approved the project’s environmental plan, securing the final major regulatory green light required for the build.
To streamline logistics, Lion has also finalised infrastructure and facility-sharing agreements with neighbouring operators.
The Bula-Karang-1 well targets a 12-million-barrel (P50) unrisked prospective oil resource in its primary objective, carrying an estimated 38 per cent geological probability of success. Secondary sandstone reservoirs offer additional upside.
The technical campaign relies on a deviated well design, which allows the rig to spud from a cheaper onshore location and drill laterally out to tap the crest of the offshore carbonate reef structure.
Lion Energy Chairman Tom Soulsby said: “With contracts awarded, approvals secured and field activities underway, the project is progressing broadly in line with schedule.
“Bula Karang-1 remains one of the most attractive near-term exploration opportunities in Lion’s portfolio, with the potential to unlock a new offshore oil development adjacent to existing infrastructure.”
If the August drill hits commercial hydrocarbons, initial well testing will follow in September, leading to an extended well test in November.
Because the target sits immediately adjacent to operational storage, transport, and export facilities in the Bula area, Lion is eyeing a rapid, low-cost commercialisation pathway, targeting initial production as early as the first half of 2027.
