Pan Orient to partially farm out Sumatra, Java blocks

By Alexander Ginting

Canadian oil and gas firm Pan Orient Energy is seeking to farm out part of its interest in three exploration PSCs in Sumatra and Java to prepare for active drilling campaign in mid-2014.

The company said in a release on Thursday that it is currently seeking to farm out a portion of interests in the Batu Gajah and East Jabung PSCs both are located onshore Jambi and in Citarum PSC, onshore West Java, in which it respectively has 77 percent, 100 percent and 97 percent interests.

The company did not disclose the amount of interest it wished to farm out but said that ?Initial response has been strong from a wide range of companies?.

?It is expected that farm out activities will extend into early 2014 and be followed by drilling in mid-2014, subject to a number of variables,? the company said.

Pan Orient reported that preparation was also underway to relinquish South CPP block onshore Central Sumatra, where it has 100 percent interest.

Elsewhere, the company said that the Singapore listed operator of the Lemang PSC which is adjacent to Batu Gajah PSC has discovered significant hydrocarbons in two wells; one located approximately 175 meters west from the Lemang/Batu Gajah PSC boundary and another approximately 500 meters west of the shared boundary.

?Mapping of 2D seismic data over these wells combined with 2D seismic acquired by POE in 2010 indicates a portion of this structural closure extends into Batu Gajah PSC and perhaps the structural crest. Articles of the PSC contract indicate that unitization will be mandatory in the event of a "shared" field. Pan Orient is currently working on the front end requirements to drill a well on this area,? the company said.

Editing by Reiner Simanjuntak