Pan Orient to spend $40 million on capex in Indonesia

By Demas Simbolon

Pan Orient Energy Corp said on Thursday it plans to spend US$40 million in capital expenditure this year in Indonesia.

The spending will be made for six exploration wells (Cataka-1 & 1A, Jatayu-1 & Geulis-1 in the Citarum PSC, two wells in Batu Gajah PSC and one well in East Jabung PSC), a 2D seismic program in South CPP, and a 3D seismic program in Batu Gajah.

Two wells are planned on Batu Gajah in 2012 with the NTO-2 appraisal well targeting the updip potential of the NTO-1 gas discovery made in 2011 and the Shinta-1 exploration well, at a prospect located north of NTO-2. Both wells are being drilled on the basis of 3D seismic data, the Canadian company said.

The exact timing of drilling is dependent on the success ongoing negotiations with the forestry company that holds the surface access rights over both of these locations, and for which have been ongoing for some time now, it added.

The Jatayu-1 well is currently setting casing at a depth of approximately 1,424 meters TVD. The well will be drilled to the primary Parigi limestone reservoir objective estimated at approximately 2,300 meters TVD. Once drilling is completed at Jatyau-1, the rig will move to Cataka-1A, followed by Geulis-1.

A 2D seismic program is planned for 2012 with the drilling of up to two exploration wells planned to commence drilling in late 2012 or early 2013, Pan Orient said. Initially drilling was scheduled for mid-2012 but original survey monuments for the seismic program conducted over 20 years ago could not be located. Because the data was acquired prior to the introduction of the GPS survey system, the exact positioning of the earlier acquired 2D data is subject to a large degree of uncertainty.

Pan Orient is well funded for the 2012 capital program, and possesses an acreage and prospect inventory that has been more than four years in the making to reach the point of drilling that it is at now. The portfolio of prospects is diverse across a number of reservoir types, basins and countries and in many cases, of a potential size whereby any one success has the potential to transform the production and reserves base of the company.

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

Editing by Reiner Simanjuntak