Pan Orient Energy Corp.

Pan Orient Energy Corp.

September 28, 2010 08:00 ET

Pan Orient Energy Corp.: WBEXT-2 Exploration / Appraisal Well-Testing Update

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2010) - Pan Orient Energy Corp. (TSX VENTURE:POE) –


Concession L44 (Pan Orient 60% Working Interest and Operator)

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

The WBEXT-2 exploration / appraisal well is currently flowing natural gas at a rate of approximately1.6 million cubic feet per day through a ¼" choke and with a flowing bottom hole pressure of 1,331 psia. There is no water.

The WBEXT-2 well, drilled from the WBEXT-2 pad approximately 1.4 kilometers northwest of the WBEXT-1 pad, encountered the top of the WBV2 target volcanic zone at a true vertical depth of 971 meters, approximately 52 meters high to the top of the WBV2 volcanic zone encountered at the WBEXT-1A well. The WBEXT-1A well is flowing at 5,300 barrels of oil per day gross (3,180 BOPD net POE) from the WBV2 volcanic reservoir and is located approximately 1.8 kilometers to the east of the WBEXT-2 well at the top WBV2 volcanic reservoir level.

Total drilling fluid losses were observed while drilling the upper seven meters of the volcanic zone of the WBEXT-2 well when the decision was made to stop drilling at 978 meters true vertical depth. While displacing the drilling mud with weighted brine during the completion, approximately 2% oil was observed in the drilling mud suggesting the base of the open hole volcanic reservoir section of this well may be in close proximity the gas / oil contact. An oil / water contact has yet to be defined in any fault compartment in the WBV2 volcanic zone.

The well will continue to be flowed at higher natural gas rates in order to observe any possible influx of oil into the wellbore. In the event no influx of oil is observed, the well will be deepened approximately 25 meters and the upper 15 meters of open hole volcanic reservoir will be isolated. This operation is anticipated to take three or four days to complete, and would commence immediately upon the completion of the drilling of the WBEXT-2A exploration well in approximately ten days.

While natural gas was not the target of the WBEXT-2 well, as there is no local market, the presence of hydrocarbons in a large fault compartment 1.8 kilometers west of the WBEXT-1A discovery well is very encouraging as it is highly likely that an oil column exists down structure based on the WBEXT-1A well currently producing 5,300 BOPD (3,180 BOPD net POE) from the same reservoir WBV2 volcanic zone 52 meters structurally lower.

WBEXT-2A Exploration Well (Wichian Buri Extension Field)

The WBEXT-2A exploration well, drilling from the same surface pad as the WBEXT-2 well, is currently drilling ahead at a depth of 150 meters and is targeting the WBV3 volcanic target which has not been drilled previously. The WBV3 volcanic target is interpreted on 3D seismic to be present approximately 180 meters below the WBV2 volcanic zone. Drilling is anticipated to be completed in the next ten days at which time testing will be conducted if technically justified.

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