ASX Announcement 8thJuly 2004 ACTIVITY UPDATE SERAM (NON BULA BLOCK) JOINT VENTURE Lion Energy Limited is a 2.5% shareholder in the Seram (Non Bula) Block Production Sharing Contract. The major shareholder, and Operator of the Joint Venture, is KUFPEC (Indonesia) Limited with 97.5%. The block contains the Oseil Oilfield. Production Production for June 2004 and the cumulative results are tabulated below. June 2004 (barrels) Cumulative (barrels) Crude Oil Production 91,641 1,841,026 HSFO Production 100,470 854,590 Naptha Production 7,232 58,227 During the month of June 2004, well uptime averaged 99% for the three wells, Oseil 1, 2 & 4. Lifting The next scheduled lifting of 340,000 to 380,000 barrels of HSFO from the operation is scheduled for mid to late August 2004. Future Work The Phase II drilling program, which is forecast to lift production to 18,000 BOPD by 2ndquarter 2005, is now scheduled to spud the first development well in early September 2004. A Century Drilling rig is being mobilized from Western Australia for this work. BULA BLOCK OILFIELDS Lion Energy Limited is the 100% contractor shareholder and Operator of the Bula Block. The block contains the Bula oilfields. Production for June 2004 was 15,354 barrels for a daily average of 512 BOPD. Oil in stock at 30thJune 2004 was 44,897 barrels. Lion Energy Limited (ACN 000 753 640) Suite 33, 168 Melbourne Street, North Adelaide SA 5006 Tel: (08) 8239 2666 Fax: (08) 8239 1744 Email: [email protected] Energy Limited (ACN 000 753 640) Suite 33, 168 Melbourne Street, North Adelaide SA 5006 Tel: (08) 8239 2666 Fax: (08) 8239 1744 Email: [email protected] lifting of approximately 40,000 barrels is scheduled for the week commencing 6thJuly 2004. OTHER Lion Energy Ltd's wholly owned subsidiary PT Prima Jasa Energi's Rig 482 has successfully completed the setting of 13-3/8" surface casings to a depth of approximately 150 feet on seven wells. The work was completed ahead of schedule and on budget. This work is part of a Variation Order to the Rig 482 Workover Services Contract due to expire on December 1st2004. A larger rig will now move to location to commence the infield development drilling of the Oseil development wells in the Seram (Non Bula Block) Joint Venture. Yours faithfully Giuseppe Mercorella CHAIRMAN LION ENERGY LTD
