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NEWS RELEASE TRANSMITTED BY Marketwire

FOR: PAN ORIENT ENERGY CORP.

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

Pan Orient Energy Corp.: WBEXT-1B Well-Sandstone "F" Reservoir on Production at 550 BOPD

Sep 22, 2010 - 08:30 ET

CALGARY, ALBERTA--(Marketwire - Sept. 22, 2010) - Pan Orient Energy Corp. (TSX VENTURE:POE) -

THAILAND OPERATIONS UPDATE

Concession L44 (POE 60% Working Interest and Operator)

WBEXT-1B Exploration / Appraisal Well (Wichian Buri Extension Field)

The WBEXT-1B exploration / appraisal well is currently producing oil utilizing an electrical submersible pump at an average rate of approximately 550 barrels of oil per day gross (330 BOPD net POE) of 35 degree API oil and seven barrels of drilling and completion fluid per day as the well continues to clean up.

This is the highest production rate from a sandstone reservoir of any well drilled in Concession L44 and is a surprising result given the shallow 570 meter depth of the "F" sand reservoir. 

The WBEXT-1B well was drilled from a surface pad adjacent to the WBEXT-1 and WBEXT-1A wells with the original objectives of: a) logging the shallow sandstone zones, and b) establishing a minimum oil column in the WBV1 volcanic reservoir.

The top of the WBV1 volcanic reservoir was encountered at a depth of 890 meters true vertical depth and severe drilling fluid losses, indicating excellent permeability, were encountered at 908 meters true vertical depth. A total of 40 meters true vertical thickness of the volcanic reservoir had been drilled when the decision was made to sidetrack the well 120 meters to the northeast of the original volcanic reservoir penetration due to the lack of oil shows observed while drilling the volcanic.

The sidetrack well encountered the top of the WBV1 volcanic reservoir at a depth of 857 meters true vertical dept, 33 meters higher than the original WBEXT-1B well bore and 73 meters structurally lower than the top of the WBV1 volcanic reservoir in the WBEXT-1 discovery well. Severe drilling fluid losses were observed in the upper four meters of the target volcanic reservoir and the decision was made to terminate drilling. Testing of the WBV1 volcanic reservoir resulted in the initial recovery of fluids at a rate of 1,200 barrels per day initially comprised of 40% oil and 60% water and turning to 97% water early in the first day of a two day testing period. The well is interpreted to have been drilled at, or very near, the oil / water contact resulting in an interpreted oil column of 73 meters defined between the WBEXT-1 and WBEXT-1B wells. With the WBV1 volcanic reservoir at the WBEXT-1B location highly unlikely to be a commercial well, it provided the opportunity to test shallower sandstone zones that appeared highly prospective on logs and which exhibited strong indications of hydrocarbons while being drilled by the WBEXT-1, WBEXT-1A and WBEXT-1B wells.

In summary, the WBEXT-1B well has achieved a number of important goals in the early development of the WBEXT field including:

  1. Establishing conventional sandstone production of 550 barrels of oil per day gross (330 BOPD net POE) in an area significantly further north and east of where it was believed good reservoir quality sandstone zones were likely to be present based on prior well data.

  2. Defining a significant oil column of approximately 73 meters within the WBV1 volcanic reservoir between the discovery well at WBEXT-1 and the inferred oil / water contact encountered at WBEXT-1B.

  3. Proving the WBV1 volcanic reservoir to be at least 40 meters thick in this fault compartment.

  4. Upgrading the potential for additional interpreted net oil pay of approximately 12 meters in thickness that remains to be tested in the shallower overlying sandstone section.

As with the underlying volcanic reservoirs, the sandstone reservoirs in this region are involved in a structurally complex area of independent fault compartments that may or may not share the same oil / water contacts if proven hydrocarbon bearing. Additional wells will be required to define the sandstone distribution, potential oil / water contacts of each fault compartment and the overall reserve potential of this discovery.

WBEXT-2 Exploration / Appraisal Well (Wichian Buri Extension Field)

The WBEXT-2 is currently drilling ahead at a true vertical depth of approximately 850 meters towards the top of the primary WBV2 volcanic reservoir objective from a surface pad located 1.4 kilometers northwest of the WBEXT-1 well pad. Drilling is anticipated to be completed within the next five days at which time testing will be conducted if technically justified.

Production

Concession L44 production is currently 12,585 barrels of oil per day gross (7,550 BOPD net POE) and Concession L53 is currently producing approximately 150 barrels of oil per day (and POE has a 100% working interest in this concession). There is an additional 3,470 barrels of oil per day gross (2,072 BOPD net POE) shut-in at Concession L33 pending the award of a production license which is expected to be received in late December 2010. Total net Pan Orient production is currently 7,700 BOPD and total net Pan Orient production capacity is approximately 9,772 BOPD.

An updated corporate presentation that will include all the recent drilling and production information is anticipated to be posted on Pan Orient's website (www.panorient.ca) within the next 36 hours.

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
www.panorient.ca