Pan Orient updates Indonesia operations
Friday, November 25 2011 - 12:59 AM WIB
Batu Gajah PSC - Onshore Sumatra (Pan Orient Operator & 97% Working Interest)
At the Batu Gajah PSC on-shore Sumatra (Pan Orient operator and 97% ownership), Pan Orient commenced the exploration drilling program in late March 2011.
The Tuba Obi Utara-1 (NTO-1) exploration well drilled at the end of the first quarter and into the second quarter encountered 10.5 feet of gas pay within good-quality sand near the top of the Lower Talang Akar formation (?LTAF?). The follow-up NTO-1ST side track well encountered the same LTAF gas sand formation identified at the NTO-1 well, but of lower reservoir quality. Initial drilling results at North Tuba Obi are encouraging with proven gas in the LTAF and oil shows in the Upper Talang Akar sand. The first Appraisal of the North Tuba Obi gas discovery, NTO-2 is planned to be drilled in the first quarter of 2012 at a location approximately 5.5 kilometers east and 200 meters structurally higher than the NTO-1 discovery well. NTO-2 will be targeting natural gas in the LTAF and oil in the overlying Upper Talang Akar and Air Benakat sandstone zones.
The SE Tiung-1 exploration well drilled in June and into July encountered oil shows and good quality sands within the primary Lower Talang Akar target horizon but wire line logging indicated the zone to be water bearing. The secondary objective of the Gumai and Upper Talang Akar formation sands were also present, but interpreted as being water bearing. The results at SE Tiung-1 have no bearing whatsoever on the prospectivity of the upcoming two well program planned for the first quarter of 2011 and we remain confident in the overall hydrocarbon potential of the Batu Gajah PSC.
Two wells are planned for the Batu Gajah PSC in the first quarter of 2012 with the North Tuba Obi Utara-2 (NTO-2) exploration / appraisal well and Shinta-1 exploration well. The Company is currently focused on finalizing a comprehensive surface access agreement which includes the use of roads and land area for well pads with the Indonesian company which holds the forestry surface rights. This agreement is estimated to be in place by year end.
Citarum PSC - Onshore Java (Pan Orient Operator & 77% Working Interest)
At the Citarum PSC on-shore Java (Pan Orient operator and 77% ownership), one location (Jatayu-1) has been completed and a second location (Cataka-1) is approximately 90% complete after having experienced some delay as a result of annual monsoon rains. Surface casing has been set on both wells utilizing a service rig and drilling rig mobilization on to the Cataka-1 location is planned to commence on November 26th with drilling to commence in early to mid-December. Construction on the third location of Geulis-1 will commence shortly after the completion of construction on Cataka-1. All three wells are planned to be drilled back to back starting with Cataka-1 in the first half of December 2011.
East Jabung PSC - On/Offshore Sumatra (Pan Orient Operator &100% Working Interest)
East Jabung PSC was formally granted on a 100% basis to Pan Orient on November 21, 2011. The 6,228 square kilometer East Jabung PSC is located on and offshore south Sumatra Indonesia, and directly east and adjacent to the company?s 97% working interest and operated Batu Gajah PSC. The firm three year exploration commitment (including two wells and seismic) for the East Jabung PSC totals $7.3 million. (end of excerpt)