Press Release Navigation

<<< Previous

Headlines

Next >>>


NEWS RELEASE TRANSMITTED BY Marketwire

FOR: PAN ORIENT ENERGY CORP.

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

Pan Orient Energy Corp.: L53-DST3 (L53-D East Field) on Production at 1,200 Bopd

Feb 27, 2012 - 08:00 ET

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2012) -

THAILAND OPERATIONS

Concession L53 (Pan Orient 100% working interest and operator)

L53-DST3 (L53-D EAST) Exploration well

Pan Orient (TSX VENTURE:POE) is pleased to announce that the L53-DST3 appraisal well is currently on a 90 day production test flowing 38 API degree oil at a rate of 1,200 barrels per day through 8.8 meters of perforations between 1,142.7 meters to 1,163.2 meters true vertical depth ("TVD"), within an interpreted gross hydrocarbon bearing interval extending from 1,119 meters to 1,187 meters TVD with approximately 20 meters TVT of net oil pay. It is important to note that the entire hydrocarbon interval from 1,142.7 meters to 1,163.2 meters in L53-DST3 was not encountered in the original L53-D2 discovery well as it was not drilled deep enough. The interval currently on test is the best reservoir quality sand that has been observed in Concession L53 at these depths with porosities over the perforated intervals estimated at between 27% - 30%, suggesting that deeper potential remains and will be evaluated during the upcoming development program.

An estimated additional 50 meters of net oil pay was encountered between 605 meters and 935 meters TVD, in line with the offsetting L53-D2 discovery well over the same stratigraphic interval. The main upper oil pay sandstones came in 40 meters structurally higher at L53-DST3 compared to L53-D2.

The fluid level is near surface at 27 meters and the water cut is negligible at approximately two percent with the high salinity suggesting initial load fluid is still cleaning up. This test result marks the second consecutive highest oil flow rate ever achieved by POE from a conventional sandstone reservoir in Thailand.

Upon the completion of the L53-DST3 well the E-02 drilling rig was released and activities are now focused on the completion and submission of the L53-D EAST production license application and additional environmental applications for drilling sites as soon as possible.

Drilling results from the first two wells within the L53-D East structural closure have resulted in oil flow rates, reservoir quality and net oil pay thickness in excess of internal pre drill estimates. Current drilling has evaluated one of three fault compartments that make up the five to six square kilometer (in maximum areal extent) L53-D East structural closure. Future development and appraisal drilling is estimated to start in late May 2012, immediately upon the granting of a production license and all the required environmental drilling approvals. Additional drilling will be required in order to fully define the size and extent of this potentially significant oil accumulation.

L53-G Exploration well

The L53-G exploration well, located approximately 2.7 kilometers southeast and on trend with the L53-A oil field, but within a distinctly separate structural closure, was drilled to a depth of 1,411 meters TVD. A nine meter zone of interest that was identified at approximately 876 meters TVD was tested at a sub commercial rate of approximately 10 barrels of highly viscous oil per day. Two other zones were tested resulting in only formation water.

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.

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

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