Pan Orient to drill Cantik-1 well in Q3 2016
Friday, May 20 2016 - 07:29 AM WIB
TSX-listed Pan Orient Energy Corp announced on Thursday that the Cantik-1 exploration well at the Anggun prospect of the East Jabung PSC in Onshore Sumatra is planned to commence in the late third quarter of 2016, followed by drilling in the fourth quarter.
The company said it looks forward to the planned drilling of the first East Jabung exploration well at the Anggun prospect in the fourth quarter of 2016. The Anggun prospect is a relatively shallow, onshore, high impact target adjacent to existing infrastructure and possesses some of the best fiscal terms in Indonesia.
Success at Anggun would have the potential to materially transform Pan Orient within a framework of manageable appraisal and development costs and in the context of Pan Orient's available financial resources.
Pan Orient, which holds a 49 percent interest in the East Jabung PSC.
Meanwhile, the company was informed by the oil and gas regulator of the Government of Indonesia that an additional appraisal well of the Akeh discovery at the Batu Gajah PSC in Onshore Sumatra is required prior to granting of "Release from Exploration Status" and preparations are underway towards drilling of the Akeh-2 deviated appraisal well from the existing Akeh-1 well pad in late 2016 or early 2017.
The company intends to submit an application for a two year extension in June 2016 which would allow the time required to finish drilling the Akeh-2 appraisal well, apply for "Release from Exploration Status" and move forward to prepare a Plan of Development to determine the likelihood of the commerciality of the Akeh-1 discovery.
Discussions continue with a number of parties since December 2015 seeking a partner in the Batu Gajah PSC.
Pan Orient holds a 77 percent interest in Batu Gajah PSC as the operator.
Pan Orient continues to maintain a strong financial position for upcoming planned exploration activities during 2016 at the Batu Gajah and East Jabung PSCs in Indonesia, and at Concession L53 in Thailand with working capital and non-current deposits at March 31, 2016 of $53.2 million and no long-term debt.
Editing by Johannes Simbolon