Pan Orient updates Indonesia operations
Tuesday, January 10 2012 - 01:03 AM WIB
Citarum PSC (Pan Orient 77% working interest and operator)
Cataka-1 Exploration Well
The Cataka-1 exploration well commenced drilling on December 31, 2011. The well is currently drilling ahead at a depth of 500 meters towards a limestone reservoir objective estimated at 2,000 meters depth. Drilling is anticipated to be completed within the next 21 days.
Upon the completion of drilling at Cataka-1, the rig will mobilize to Jatayu-1 exploration location and then to the Geulis-1 exploration location. All three wells are anticipated to require 30 days drilling time to target depth with an addition 10-14 days of rig moved between wells.
East Jabung PSC (Pan Orient 100% working interest and operator)
2D seismic data reprocessing is currently underway and preparations continue towards the drilling of the high impact Anggun-1 exploration well in the third or fourth quarter of 2012.
Batu Gajah PSC (Pan Orient 97% working interest and operator)
Discussions continue towards an overall road and land access agreement with the Indonesian forestry company which holds the surface rights over two prospects planned to be drilled in Batu Gajah in 2012. It is anticipated the NTO-2 and Shinta-1 wells will commence drilling in approximately late in the second quarter of 2012.
South CPP PSC (Pan Orient 97% working interest and operator)
Preparations continue for a planned 2D seismic program in 2012 to be followed by the drilling of one exploration well in 2013.
2012 Budget and Work Program
The capital budget for 2012 is estimated at $73.4 million with a breakdown of $36 million for Indonesia that includes six exploration wells (Cataka-1, Jatayu-1 & Geulis-1 in the Citarum PSC, two wells in Batu Gajah PSC and one well in East Jabung PSC), 2D seismic in South CPP, and 3D seismic in Batu Gajah, and $37 million in Thailand including 33 wells (with approximately 20% exploration wells) and 3D seismic in Concession L53. The exact well breakdown between concessions in Thailand will be heavily influenced by Concession L53 exploration drilling results.
Canadian operations and Indonesian G&A are allocated an additional $0.6 million. Cash flow, under current oil price and production assumptions, is anticipated to fund $55 million of the 2012 budget with the remaining $18.4 million funded through working capital and deposits that are estimated to be approximately $55 million at year end 2011.
Summary
Pan Orient currently has three rigs running in two different countries with activity levels through 2012 to be the highest in the company?s history. The first result of the 2012 exploration drilling campaign at L53-D2 is very encouraging and we eagerly await the test results from this well. Operations in Indonesia are proceeding with the drilling of the first exploration well, Cataka-1, in the Citarum PSC, the first of three back to back exploration wells that have the potential, in the success case of any one prospect, to transform the company.
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 we are 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. (excerpt from press release)