Lion Energy Rig Heads to Seram as Bula Karang-1 Targets 12 mmbbl Oil Prospect
Key Takeaways
- Lion Energy's Bula Karang-1 well is scheduled to spud on 10 November 2026, with drilling and evaluation expected to finish by early December.
- Rig 20 left Patimban Port on 13 October, and all three LCT barges are due near the wellsite by 8 November, leaving just two days before spud.
- The primary target carries a 12 mmbbl P50 unrisked prospective resource with a 38% geological chance of success, while the wider Bula Bay play exceeds 30 mmbbl.
- The well pad, river crossings and access routes are complete, and the drilling programme has been technically reviewed with geomechanics and pore-pressure studies built in.
- Positive drilling indications would trigger rig testing, then an extended well test planned for early 2027, with a March 2027 operational planning case.
Drilling rig departs for Seram as Bula Karang-1 spud date set
Mobilisation of Silver City Drilling Rig 20 and supporting equipment for the Bula Karang-1 (BK-1) exploration well in the East Seram PSC, Indonesia, is progressing, Lion Energy Limited (ASX: LIO) said in its 19 October 2026 update. The first landing craft tank barge (LCT) departed Patimban Port, West Java, on 13 October 2026.
The well is scheduled to spud (begin drilling) on 10 November 2026, with drilling and evaluation activities expected to be completed by early December. For investors, that moves the company from preparation to a near-term catalyst, with the rig now on its way.
Tom Soulsby, Executive Chairman
“The departure of Rig 20 marks an important milestone as we move towards drilling Bula Karang-1…”
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What is the mobilisation timeline for Bula Karang-1?
Three LCT barges will deliver the rig, equipment and materials to Bula, on Seram Island. All items are expected to arrive near the wellsite by 8 November 2026.
Three barges, three arrival dates
The table below sets out each vessel’s schedule. Only the first vessel is described as carrying the rig, while the other two carry drilling equipment and supplies.
| LCT vessel | Departure | Arrival at Bula | Cargo |
|---|---|---|---|
| LCT 1 | 13 October 2026 | 27 October (expected) | Silver City Drilling Rig 20 |
| LCT 2 | 18 October | 1 November (scheduled) | Drilling equipment and supplies |
| LCT 3 | 25 October | 8 November (scheduled) | Drilling equipment and supplies |
The gap between the final arrival on 8 November and the 10 November spud date is narrow. That makes vessel timing the schedule item to watch.
Wellsite ready to receive the rig
The drilling location is ready to receive the rig. The company reported the following preparations as complete or finalised:
- Well pad construction, river crossings and access routes completed
- Final drilling programme technically reviewed, with geomechanics and pore-pressure studies incorporated into the well design
- Geological monitoring plans finalised
Geomechanics and pore-pressure studies assess rock strength and fluid pressure underground, which helps plan a safe well design.
After the rig arrives, moving, assembly and rig-up are expected to take approximately 10-14 days. The company’s current target remains a 10 November 2026 spud, with drilling and initial evaluations planned for completion by early December, subject to vessel arrivals and operational conditions.
What is Bula Karang-1 targeting?
The well will evaluate the primary carbonate reservoir, secondary sandstone objectives and potential hydrocarbons in the historic Bula Field interval along the well path. Evaluation will be based on logging-while-drilling (LWD) tools and detailed drill cutting sample evaluation, including analysis of oil and gas indications.
The primary objective has a Mid Case (P50) unrisked prospective resource of 12 mmbbl of oil, with an estimated 38% geological chance of success (GCOS). The broader Bula Bay carbonate play, including nearby follow-up prospects, has a combined P50 unrisked prospective resource of over 30 mmbbl recoverable.
Both resource figures are unchanged from the previous announcement dated 22 April 2026. If the well succeeds, that could inform how the wider play is viewed, though the announcement does not draw that link itself.
Prospective resources explained
Prospective resources are quantities of petroleum estimated to be potentially recoverable from undiscovered accumulations. Because nothing has been found yet, the numbers are estimates rather than confirmed volumes.
Each estimate carries two layers of risk. One is the chance of discovery (the GCOS, here 38%), and the other is the chance of development, which covers economic, regulatory, market and facility, corporate commitment, or political risks.
“P50” is the mid case, and “unrisked” means the 12 mmbbl figure has not been adjusted for the chance of failure. The source states there is no certainty that any portion of the prospective resources will be discovered, or, if discovered, developed or commercially viable.
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What comes next after spud?
Evaluation and testing pathway
The company outlined a staged sequence after drilling begins:
- Drilling and initial evaluations, using LWD tools and drill cutting sample analysis, including oil and gas indications.
- Subject to positive indications during drilling, initial testing using the drilling rig.
- Depending on results, completion and an extended well test using a smaller workover rig already located in the Bula area, planned for early 2027.
- A current operational planning case of March 2027, subject to results, equipment availability and scheduling.
That sequence points to a run of potential newsflow: drilling progress through November, evaluation results in early December and a possible extended well test in early 2027. Each step depends on the one before it.
Soulsby said the company looks forward to “testing this significant oil prospect and updating shareholders as drilling progresses through November.”
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