Pan Orient awaits forestry permit to carry out drilling campaign

Calgary-based oil, gas firm Pan Orient Energy Corp. reported on Thursday that it was awaiting permit from the Ministry of Forestry to carry out 3-well exploration program at Batu Gajah PSC block onshore South Sumatra.

?Pan Orient is still waiting for Ministry of Forestry approval for one of the three drilling locations for the Batu Gajah drilling program, and this remains the most significant item outside of the Company's control. The three well Batu Gajah drilling program will not start until all approvals are in place, and drilling will commence approximately 45 to 60 days after approval is received for the Tuba Obi drilling location,? the company said.

All tenders for a drilling rig and related services have been received, evaluated and memorandums of understanding have been signed with contractors awaiting the final contract awards. Two locations are currently under construction and construction on the final third location expected to commence immediately upon government approval, it added.

The company has 90% operating interest at Batu Gajah.

The company added that drilling at its other working area Citarum PSC block onshore West Java is expected to commence in the second quarter of 2011 after the completion of the Batu Gajah drilling program.

The company has a 69% operating interest at Citarum. (alex)