Pan Orient to drill Batu Gajah PSC in September

By Romel S. Gurky

TSX-listed Pan Orient Energy Corp said that it anticipated to commence drilling of Akatara/Selong offset well in Batu Gajah PSC, on shore Sumatra, in September of this year.

?The well will be drilled regardless whether or not the company farms out a portion of the company's interest in the PSC. Farmout discussions are ongoing with nothing material to report at this time,? the company said in a report released Monday.

Pan Orient said last year it wanted to farm out up to 40 percent of its 77 percent interest in the Batu Gajah PSC.

Elsewhere, Pan Orient said in the report that all documents supporting the transfer of a 51-per-cent working interest and operatorship in the East Jabung PSC onshore Jambi to a subsidiary of Talisman Energy were submitted to the Government of Indonesia regulator prior to year end 2014.

?It is anticipated that approval of the transfer of working interest and operatorship to Talisman's subsidiary will be granted in late March to April 2015. Upon receipt of Government of Indonesia approvals, Pan Orient will receive US$8 million in accordance with the Farmout Agreement,? it said. The company, which owns 100 percent of the East Jabung PSC, signed last year agreement with Talisman for the transfer of the 51 percent stake.

Pan Orient said it was also continuing to seek a partner in the Citarum PSC located onshore Java, Indonesia. ?While some progress had been made in late 2014 towards securing a farmout partner, the recent decline in oil prices has created greater uncertainty regarding the company's ability to secure a partner. Farmout discussions are ongoing with nothing material to report at this time,? it said. The company owns 97 percent of the Citarum PSC.

Editing by Reiner Simanjuntak