CALGARY,
ALBERTA--(Marketwire - Dec. 2, 2009) - Pan
Orient Energy Corporation (TSX VENTURE:POE)
L53 Concession
L53-A Exploration Well (100% WI and
operator)
Pan Orient
Energy Corporation is
pleased to report that it has encountered greater than 40 meters of interpreted
measured thickness net oil pay (approximately 26 meters true vertical
thickness) within three separate sandstone reservoir intervals in the L53-A
exploration well located in the 100% Pan Orient owned and operated L53
concession onshore Thailand. This analysis has been confirmed by third party
independent petrophysical analysis and numerous RFT pressure data points
indicating oil pressure gradients through the zones of interpreted hydrocarbon
pay.
The L53-A exploration well was drilled
approximately 1.5 kilometers south of the KS-1 well completed by British
Petroleum in 1987 and put on production by the Thailand national oil company
(PTTEP) in about 1997. The well has since produced approximately 330,000
barrels of oil from two sandstone reservoirs, the K30-B and K30-D with combined
net pay of approximately six meters true vertical thickness, at 1,124 and 1,310
meters respectively. Each zone initially tested 250 bopd (500 bopd combined)
and the well is still on production at approximately 24 bopd after 12 years.
The K30-B zone in KS-1 is interpreted as being water bearing in L53-A. The
approximately 4 meter thick net oil pay K30-D zone tested in KS-1 is
significantly thicker at L53-A (approximately 22 meters of interpreted true
vertical thickness net oil pay) and approximately 56 meters structurally
higher, the top at 1,253 meters. Both wells appear to be in communication in
the K30-D zone as RFT pressure points through the K30-D zone at L53-A indicated
pressure depletion of approximately 150 to 200 psig from initial reservoir
pressure. Two additional shallower sandstone reservoirs encountered at L53-A,
the K30-A and K30-C, at 1,045 and 1,140 meters depth respectively, were at
virgin reservoir pressure on RFT pressure plots.
The L53-A well has been cased to a
depth of 1,327 meters with present operations comprised of drilling ahead in a
secondary objective volcanic reservoir target. This secondary volcanic zone
will be tested open hole prior to the testing through perforated casing of the
shallower interpreted oil bearing sandstone reservoirs. Testing of the lower
volcanic secondary target is anticipated to commence in the next seven to 10
days and the testing of the sandstone reservoirs immediately thereafter.
Testing will be required to confirm the ultimate hydrocarbon potential of this
well.
A second exploration well, L53-D will
commence drilling immediately after L53-A, targeting conventional sandstone
reservoirs in an independent structural closure defined on 3D seismic and
located within this proven hydrocarbon basin located approximately 60
kilometers due west of Bangkok.
Pan Orient is a Calgary, Alberta based oil and gas
exploration and production company with operations currently located onshore
Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information.
Forward-looking information is generally identifiable by the terminology used,
such as "expect", "believe", "estimate",
"should", "anticipate" and "potential" or other
similar wording. Forward-looking information in this news release includes, but
is not limited to, references to: well drilling programs and drilling plans,
estimates of reserves and potentially recoverable resources, and information on
future production and project start-ups. 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: imprecision of reserve estimates and
estimates of recoverable quantities of oil, changes in project schedules,
operating and reservoir performance, the effects of weather and climate change,
the results of exploration and development drilling and related activities,
demand for oil and gas, commercial negotiations, 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.