Pan Orient announces gas, condensate discovery at Akeh-1 well

By Romel S. Gurky

TSX-listed Pan Orient Energy Corp announced Tuesday that the Akeh-1 exploration well in Batu Gajah PSC, onshore Sumatra, has completed the testing of four zones within the primary target Lower Talang Akar sandstone formation utilizing cased hole drill stem test (DST) procedures.

Pan Orient said in a statement the average testing rates for DST 4 (5314-5324 ft) over a combined 12-hour and 37-minute flow period utilizing four different choke settings were:
? 6.8MMscfg per day of natural gas (2% CO2)
? 269 barrels per day of API 60.1 degree condensate
? BS&W of 11.6% (emulsion comprised of 97% condensed water (chlorides 3545.3 mg/l), 2% Sediment, and 1% Condensate (API 60.1 degrees)).

Pan Orient, the operator of the Batu Gajah PSC with a 77 percent interest, explained that a total of 3.7MMscf of natural gas, 142.2 barrels of condensate and 25 barrels of condensed water was produced during the entire test period. ?There was no appreciable pressure decline observed over the duration of testing. Based on water salinity measurements, it is believed that the water observed during DST 4 is likely derived from water vapor within the gas cap. This will be confirmed through laboratory analysis of down hole gas samples that is currently underway.?

The two deepest tests, DST 1 and DST 2, between the gross interval of 5,646 and 5,584 feet, recovered only formation water (chlorides 11,000-12,000 mg/l) while swabbing, Pan Orient said.

Approximately 5.3 bbls of API 55.2 degree oil, in addition to 109 barrels of formation water (chlorides 11,000 mg/l) and 25 barrels of load fluid was recovered on DST 3 over the interval 5524-5532 ft, it added

The company said that updated, preliminary seismic mapping utilizing the Akeh-1 well tie and wireline pressure data indicates a maximum area of potential hydrocarbon charge at the top DST-4 sand level of approximately 6.5 km2. 3D seismic mapping also indicates areas within the Batu Gajah PSC Akeh-1 prospect area where the DST-3 sand is approximately 20 meters structurally higher than encountered at the well location.

The next steps will be holding discussions with the Government of Indonesia in relation to having the Akeh structure "Released from Exploration Status". A successful release would allow the commencement of a "Pre-Plan of Development" study to determine the likelihood of the commerciality of the Akeh-1 discovery, which would be followed (if commerciality is deemed likely) by the compilation and submission of a Plan of Development, it said.

Editing by Reiner Simanjuntak