Pan Orient close to find partner for Jambi PSC

By Alexander Ginting

Canadian firm Pan Orient Energy reported on Monday that it has received and is currently evaluating farm-in proposals for its East Jabung PSC, and continues discussions with a number of parties that expressed interest late in the farm-out process and were unable to meet the March 31, 2014 request for proposals for the Batu Gajah and Citarum PSCs.

?The Company anticipates a near term announcement to be made with regard to a new East Jabung partner and the company continues to progress discussions with potential future partners for the Batu Gajah and Citarum PSCs,? it said.

Pan Orient intends to continue exploration at the three PSCs through farm-out arrangements. It is seeking to farm-out a 50 percent interest in East Jabung PSC, a 40 percent interest in Batu Gajah PSC and a 50 percent interest in Citarum PSC.

Pan Orient currently has 100 percent interest in East Jabung PSC, onshore Jambi, 77 percent in Batu Gajah PSC also onshore Jambi and 97 percent in Citarum PSC, onshore West Java.

?Much of the progress made regarding the exploration potential that was defined in Indonesia in the latter part of 2013 and early 2014 based on newly acquired 2D and 3D seismic data was overshadowed by drilling results earlier in 2013 at the Citarum PSC where a very difficult, structurally complex drilling environmentresulted in the failure to reach the deeper primary objectives on two prospects.

This disappointing and expensive outcome resulted in the decision by the Board of Pan Orient to reduce the company?s financial exposure to Indonesia by seeking partners for each of the three remaining Company operated contract areas, despite the high remaining exploration potential of the Indonesian assets,? it said.

Editing by Reiner Simanjuntak