GOI approves transfer of stake in East Jabung PSC to Talisman

By Romel S. Gurky

TSX-listed Pan Orient Energy Corp said that the government of Indonesia (GOI) has recently approved the transfer of a 51 percent participating interest and operatorship of the East Jabung Production Sharing Contract (PSC) onshore Jambi to a subsidiary of Talisman Energy Inc. Pan Orient retains a 49 percent participating interest at the East Jabung PSC.

Pan Orient said in a statement Monday that the first well is currently planned to be drilled in the East Jabung PSC in approximately early to mid-2016 and the farminee will fund the first USD$5 million of Pan Orient's share of the exploration program and fund associated general and administrative expenses.

The company added it plans to drill an exploration well at the Batu Gajah PSC, onshore Sumatra in the second half of 2015, which would offset an existing oil discovery made by another operator in the adjacent Lemang PSC. Forestry approval for three surface locations was received in May 2015, and road and wellpad construction is expected to commence in June 2015.

Editing by Reiner Simanjuntak