CALGARY, AB, Sept.
14, 2020 /CNW/ - Pan Orient Energy Corp. ("Pan Orient" or the
"Company") (TSXV: POE) reports an update on Thailand drilling.
THAILAND
Concession L53 Onshore (Pan Orient Energy (Siam) Ltd., in which
Pan Orient has 50.01% ownership)
Total Concession L53 oil sales have averaged 3,532 barrels of
oil per day ("BOPD"), on a gross 100% basis, over the past four
days since bringing onto production the L53-AA2, L53-DD7 and
L53-DD8 wells. This is a substantial increase from the August
oil sales daily average of 1,761 BOPD on a gross 100% basis (881
BOPD net to Pan Orient's 50.01% equity interest).
The L53-DD7 development well has produced at an average of 805
BOPD, on a gross 100% basis, of 23.6 degree API oil from the BB
sand since clean-up ten days ago, with a water cut of 1.4%.
The well is currently producing at 813 BOPD with a water cut of
0.2% and will continue on long-term production.
The L53-DD8 development well has produced at an average of 820
BOPD, on a gross 100% basis, of 23.2 degree API oil from the BB
sand since clean-up five days ago, with a water cut of 1.00%.
The well is currently producing at 873 BOPD with a water cut
of 0.2% and will continue on long-term production.
The L53-AA2 exploration well has produced at an average of 100
BOPD, on a gross 100% basis, of 25.5 degree API oil from the AA
sand since clean-up twelve days ago, with a water cut of
82.00%. The well is currently producing at 84 BOPD with a
water cut of 85.00% and will continue on the 90 day production
test.
The L53-BB1ST1 exploration well had only very minor indications
of oil and will be abandoned.
Overall, production performance from the L53-DD field has been
excellent to date with the reasonable expectation for this to
continue. Production performance of the L53-AA2 well will be
monitored over the remaining period of the 90 day production test.
A final decision will be made at the end of the 90 day period
whether to proceed, or not, with a Production Area application for
the L53-AA2 structure. Test results are not necessarily
indicative of long-term performance or of ultimate recovery.
The capital program for the remainder of 2020 will include one
firm water disposal well at the L53-DD oilfield and possibly two
exploration wells that will be contingent on oil prices in the
third and fourth quarters.
COVID-19 Coronavirus
The operations in Thailand of
Pan Orient Energy (Siam) Ltd. ("POS") continue to be somewhat
affected by the worldwide COVID-19 coronavirus pandemic. The
Thailand government imposed a
state of emergency in late March, giving it wide-ranging powers to
address the crisis. Domestic travel restrictions have now
been eased but a travel ban on most foreigners entering
Thailand remains in effect.
Overall, the infection and death rate has been much lower in
Thailand than in most western
nations.
Prudent measures have been taken by POS to help protect the
health and safety of staff, which are of paramount
importance. Fortunately, POS has been able to complete the
first and second phases of the 2020 Thailand drilling program.
POS and Pan Orient are well-positioned to withstand these
unprecedented events. The Company is optimistic about a slow
return to normal operations and less volatile market conditions but
the outlook for world oil prices remains somewhat uncertain.
Pan Orient is a Calgary,
Alberta based oil and gas exploration and production company
with operations located onshore Thailand and in Western Canada.
This news release contains forward-looking information.
Forward-looking information is generally identifiable by the
terminology used, such as "forecast", "expect", "believe",
"estimate", "should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release
includes references, express or implied, to production
expectations, production tests, regulatory approvals and drilling
plans in Thailand. By their very nature, the forward-looking
statements contained in this news release require Pan Orient and
its management to make assumptions that may not materialize or that
may not be accurate. The forward-looking information
contained in this news release is subject to known and unknown
risks and uncertainties and other factors, which could cause actual
results, expectations, achievements or performance to differ
materially, including without limitation: changes in project
schedules, regulatory changes and delays, operating and reservoir
performance, the results of exploration and development drilling
and related activities, supply, demand and resulting prices for oil
and gas, the impact of the COVID-19 coronavirus, other technical
and economic factors or revisions and other factors, many of which
are beyond the control of Pan Orient. Although Pan Orient
believes that the expectations reflected in its forward-looking
statements are reasonable, it can give no assurances that the
expectations of any forward-looking statements will prove to be
correct.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Pan Orient Energy Corp.