CALGARY, ALBERTA--(Marketwired - Feb. 10, 2014) - Pan Orient Energy Corp. ("Pan Orient" or the "Corporation") (TSX VENTURE:POE) is pleased to provide an update on operations in Thailand.
Concession L53 Onshore Thailand (Pan Orient Operator and 100% Working Interest)
Thailand Oil Production
Oil sales averaged 534 BOPD in January and 522 BOPD over the past 30 days. Current production is 558 BOPD with an additional approximately 530 BOPD shut-in (total current production capacity of 1,088 BOPD) until the approval of the L53-G production Environmental Impact Assessment ("EIA") now anticipated in late-February 2014, an approximate one month delay from the previous estimate. The current daily production rate is 132 BOPD less than the 690 BOPD reported on December 18, 2013 is mainly due to the end of flush production from the work over at the L53-A1 well.
Oil sales averaged 963 BOPD in the fourth quarter of 2013 and reflects the shut-in of wells in the L53-G field at the end of their respective testing periods (L53-G3ST1 which was producing approximately 80 BOPD when shut-in on September 12th, L53-G4 which was producing approximately 40 BOPD when shut-in on November 15th and L53-G2 which was producing approximately 410 BOPD when shut-in on December 6th).
An additional approximately 3,600 barrel of oil is currently in inventory due to the increased cycle time required to get this heavier oil to water cut specifications of the refinery. Upon approval of the L53-G production EIA, a large volume of light oil will be available to blend with the heavier oil and allow the inventory to be sold during the first month at an estimated 100 BOPD.
One well work over was conducted in December 2013 that was unsuccessful in a zone with no reserves attributed to it, and a second originally planned work over was deferred.
On September 9, 2013 the L53-G production EIA was submitted with approval now anticipated in late-February 2014. On August 13, 2013 the production license application for the L53-G discovery was submitted and was approved on January 13, 2014. Both production EIA and production license approvals are required to commence long term production that is not subject to 90 day test periods.
Location construction has been completed at the L53 "A" Central site and a rig contract has been signed with drilling of this potentially high impact prospect anticipated to commence in late February and take approximately fourteen days to reach total depth.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations located onshore Thailand, Indonesia and in Western Canada.
Readers are cautioned that well test results are not necessarily indicative of long-term performance or of ultimate recovery.
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.
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