Pan Orient Energy Corp.: Indonesia update
Thursday, March 24 2011 - 04:20 PM WIB
(24 March 2011)--Pan Orient Energy Corp. is pleased to announce it has completed a transaction through subsidiaries which will increase its interest in the Citarum Production Sharing Contract ("PSC") in Indonesia from 69% to 77%.
Through the transaction, Pan Orient is repurchasing an eight percent carried interest on the PSC previously owned by a third party for consideration of USD$0.5 million, including the issuance of 21,719 shares in Pan Orient at a deemed market value of USD$0.15 million.
Pan Orient, through its subsidiaries, is the operator of the Citarum PSC in Indonesia and expects to commence a high impact three well exploration drilling program late in the third quarter or early in the fourth quarter of 2011. This program will target a combined un-risked best estimate prospective resource of 1.1 trillion cubic feet of natural gas (net to Pan Orient's 77% operated interest) on the heavily populated island of Java, and in a region with excellent pipeline infrastructure and robust natural gas demand.
Batu Gajah Production Sharing Contract - POE 97% Interest & Operator
Pan Orient is pleased to announce that Tuba Obi Utara-1, the first of three back to back high impact exploration wells located in the Batu Gajah PSC onshore Sumatra, is currently drilling ahead towards a planned total depth of approximately 1,400 meters. This well is targeting a combined un-risked best estimate prospective resource of 114 million barrels of oil and 429 billion cubic feet of natural gas. The Tuba Obi Utara-1 well is targeting the primary Upper and Lower Talang Akar formation sandstone objectives and the secondary Air Benakat and Gumai formation sandstone objectives between the depths of 300 to 1,400 meters. Total depth is anticipated to be reached in approximately 15 days, at which time the rig will be moved to the Betano-1 location to be followed by the SE Tiung-1 location. Testing, if technically justified by well results, will likely commence between the drilling of the second and third wells.
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. (ends)