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TSX VENTURE SYMBOL: POE - | View Quote |  View Chart |  View Financials | 

Pan Orient Energy Corp.: Thailand Operations Update

Apr 28, 2009 - 08:30 ET

CALGARY, ALBERTA--(Marketwire - April 28, 2009) - Pan Orient Energy Corp. (TSX VENTURE:POE) - 


NSE-E2ST1 appraisal well (60-per-cent working interest and operator)

The NSE-E2ST1 appraisal well is currently producing 32 degree API oil at a stabilized rate of 1,350 barrels per day through casing and tubing choke settings of 26/48" and 14/48" respectively, with no water. The well is on free flow with flowing casing and tubing head pressures of 210 and 170 psig respectively.

This well is a sidetrack of the earlier drilled NSE-E2 where the main reservoir target was faulted-out but 15 barrels of oil was recovered from a different volcanic zone located in a separate fault compartment from the NSE-E1 structure that is yet to be appraised.

At least one additional well is planned for the NSE-E1 structure in 2009.

L44-W exploration well (60-per-cent working interest and operator)

The L44-W exploration well is currently shut-in while a cement plug is being run to isolate an upper 36 meter thick volcanic from a deeper 16 meter thick volcanic, the two being separated by 63 meters of intervening shale and thin volcanic stringers. Drilling fluid losses indicating good permeability had been encountered in both volcanic zones while drilling.

During test period #1 the well initially flowed at a maximum of 1,200 barrels of fluid per day (bfpd) with a 30% water cut that climbed to approximately 80% after approximately three hours. At the termination of the test, flowing casing head and tubing head pressures had decreased to 20-30 psig. A subsequent shut-in period saw well head pressures increase to 322 psig.

During test period #2 the flow rate was restricted to 540 bfpd initially and then further restricted to 250 bfpd with no water (all oil, approximately 32 degree API), the tubing was shut-in and a flowing casing head pressure of 120 psig was observed. After eight hours, the water cut increased immediately to 90% and the test was terminated 9 hours later.

Initial interpretation of the test data combined with observations from well tests on prior wells suggests that the water is being sourced from the deeper 16 meter thick volcanic zone. This deeper zone is being isolated with a cement plug and testing of the 36 meter thick upper zone is expected to start within the next five days.

Production testing is being conducted under a 90 day production test allowance from the Thailand Department of Mineral Fuels ("DMF"), as the well is outside any existing production license.

NSE-H2 appraisal well (60-per-cent working interest and operator)

The NSE-H2 appraisal well, drilled into the northern down structure portion of the NSE central fault compartment, is currently on production at approximately 420 barrels of oil per day with a 26% water cut as the well continues to clean up, much the same as the nearby NSE-H1 well (currently less than 1% water cut).

NSE-I1 appraisal/exploration well (60-per-cent working interest and operator)

The NSE-I1 appraisal/exploration well, located in the NSE north fault compartment is currently drilling ahead at a depth of 64 meters. This is the first well to be drilled in the NSE north fault compartment since the modest L44G-D1 discovery made in 2007 (0.075MM barrels of proved and probable reserves net to Pan Orient assigned in the reserve report as at December 31, 2008 evaluated by Gaffney Cline & Associates Ltd.). The well is located 1.1 kilometers northwest of L44G-D1 and in a separate down thrown fault compartment related to, up dip and larger than that of the NSE-E1 discovery made in 2008.

The targets include three different volcanic zones between 731 and 1,100 meters (TVD) within a 1.64 square kilometer structural closure entirely outside of the L44G-D1 3P reserve envelope. Success in any one of the 3 targeted volcanic zones has the potential to substantially increase the reserves currently assigned to the NSE north fault compartment.

Drilling is anticipated to be completed in the next 14 days at which time testing of multiple zones, if justified by drilling results, will be initiated.

NSE-H3 appraisal well (60-per-cent working interest and operator)

The NSE-H3 appraisal well is currently drilling ahead at a depth of 570 meters true vertical depth (TVD) towards the top of the main volcanic objective at approximately 850 meters TVD. Drilling is anticipated to be completed in the next 8 days with testing to commence shortly thereafter.

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.
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.

Pan Orient Energy Corp. Jeff Chisholm President and CEO (403) 294-1770 or Pan Orient Energy Corp. Bill Ostlund Vice President Finance and CFO (403) 294-1770