Lion Energy, an Australia-listed company, plans to drill the Bula Karang-1 exploration well offshore Indonesia within the next six months, with a target completion date no later than July. Preparatory work, including procurement, tendering, and approvals, is currently underway.

Strategic and Economic Advantages

The well is considered a potential game-changer for the company, with numerous follow-up prospects identified should it be successful. A key strategic and cost-saving measure involves drilling the offshore prospect as a deviated well from an onshore location. This approach is expected to nearly halve overall project costs to approximately $6 million, compared to an estimated $15 million for a traditional offshore well, by eliminating the need for an offshore rig. This method is also intended to enable rapid commercialisation if hydrocarbons are discovered.

Resource Potential and Development Timeline

The Bula Karang prospect, located near Lion's producing Bula and Oseil oilfields, holds an unrisked prospective probable resource of 12 million barrels of oil, with an upside potential of 30 million barrels. If the well confirms commercial resources, a Plan of Development (POD) is expected to be submitted in the second half of 2026. Early production could then commence in the first half of 2027, with the field having the potential to produce around 6,500 barrels of oil per day, which the company states would deliver highly attractive economics.

Broader Development Plans

Looking beyond Bula Karang-1, Lion Energy has outlined a broader development pathway for the Bula Bay area. This includes plans to drill the PP10, PP8, PP3, and Bula Utara prospects. Collectively, these prospects hold total unrisked prospective probable resources of 50 million barrels of oil.