Pan Orient Energy Corp.

Pan Orient Energy Corp.

May 27, 2009 08:00 ET

Pan Orient Energy Corp./NSE-H3 New Pool Oil Discovery: 840 bopd

CALGARY, ALBERTA--(Marketwire - May 27, 2009) - Pan Orient Energy Corp. (TSX VENTURE:POE) -


NSE-H3 New Pool Oil Discovery (60-per-cent working interest and operator)

Pan Orient Energy as operator of the L44/43 concession located onshore Thailand is pleased to announce that testing of the NSE-H3 well has confirmed the discovery of commercial hydrocarbons in a previously untested volcanic reservoir approximately 45 meters in thickness at 610 meters true vertical depth (TVD). The well is currently pumping through the annulus and free flowing through the casing, 32 degree API oil at a stabilized rate of 840 bopd and a water cut of less than 0.5%.

At year end 2008, there were no reserves of any category attributed to this shallow volcanic zone. Pressure data and the slightly lower gravity of the crude oil (32 API vs 36 API), confirms this is a distinctly separate pool from the underlying main volcanic reservoir at NSE.

NSE-H3 was designed to target the main volcanic reservoir of the NSE Central fault compartment. The proven main volcanic target zone was encountered at a depth of approximately 802 meters TVD and exhibited severe drilling fluid losses with free oil observed at surface. While conditioning the wellbore prior to logging and casing, it become evident the hole was collapsing. After repeated failures to reenter the well bore the decision was made to plug the well back with cement and test a much shallower volcanic at approximately 600 meters. Rock samples from the zone of interest exhibited open vesicular (vuggy) porosity and oil shows were observed over a 70 meter interval. No drilling fluid losses had been encountered while drilling through this interval, suggesting a conventional type of oil reservoir with primary porosity and possibly non fracture dominated permeability. The deeper main volcanic objective at NSE-H3 will be re-drilled at a later date.

A post NSE-H3 test review of NSE Central wells drilled previously is currently underway to estimate the reserve potential of this new zone discovery. Preliminary analysis indicates this same shallow volcanic zone has been encountered in eight other wells with thicknesses averaging approximately 50 meters. These wells were never tested in the shallow volcanic zone because they were completed as deeper, main volcanic zone producers. Additional wells targeting this new volcanic zone will be slotted into the 2009 drilling schedule on a priority basis.

Wells NSE-I1, an exploration/appraisal well in the NSE northern fault compartment and NSE-J1, a development well in the southern portion of the NSE central fault compartment, are currently drilling ahead just above their primary volcanic reservoir objectives.

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.

Contact Information

  • 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