Pan Orient updates Indonesia operations
Friday, October 19 2012 - 01:59 AM WIB
Batu Gajah PSC (Pan Orient Operator and 77% Working Interest)
The company is pleased to announce the completion of access agreements with the surface rights holder of lands covering a large portion of the Batu Gajah and South CPP PSCs. In consideration for unlimited access to an extensive road network and surface lands covering the Batu Gajah and South CPP PSCs through the entire exploration, development and production period, Pan Orient will hold in trust a 20% carried interest in both the South CPP and Batu Gajah PSC's for the surface rights holder and will continue to pay certain access fees as mandated by the various Government of Indonesia bodies. All costs incurred by Pan Orient in relation to the 20% carried interest will be preferentially recovered from the future cost recovery on any potential future discovery that is brought on stream.
The drilling of the first of two back to back appraisal / exploration wells is anticipated to commence by the end of December 2012. The contract for a 400 square kilometer 3D seismic survey has been awarded and acquisition is anticipated to commence in March 2013.
South CPP PSC (Pan Orient Operator and 77% Working Interest)
The contract for the acquisition of approximately 227 kilometers of 2D seismic has been awarded and the survey is anticipated to commence in December 2012, setting the stage for exploration drilling 2013.
East Jabung PSC (Pan Orient Operator and 100% Working Interest)
The contract for the acquisition of approximately 430 kilometers of 2D seismic data has been awarded and the survey is expected to commence in April 2013, setting the stage for exploration drilling in late 2013. (end of excerpt)