CALGARY, AB, Aug. 20, 2020
/CNW/ - Pan Orient Energy Corp. ("Pan Orient" or the "Company")
(TSXV: POE) reports an update on Thailand drilling.
THAILAND
Concession L53 Onshore (Pan Orient Energy (Siam) Ltd., in which
Pan Orient has 50.01% ownership)
The L53-DD7 well was drilled from the DD oilfield wellpad to a
total measured depth of 1,467 meters (1,113 meters true vertical
depth) at a subsurface location 607 meters south-southwest.
This well was drilled to a target location substantially down dip
from the crest of the structure at the BB/CC and DD sandstone
reservoir levels with the intention of using it as a water
injection/disposal well, or a producer, depending on results.
L53-DD7 encountered a total of approximately 29.9 meters of net
oil pay. This includes the thickest AA sand encountered to date
with approximately 16 meters of net oil pay with the top sand
approximately three meters high to the L53-DD1 well, the only other
well currently producing from the AA sand located
approximately 375 meters to the north east. No oil water
contact was observed on logs and wireline pressure data indicated
low depletion of approximately 35 psia. In addition, there was
approximately four meters of net oil pay encountered in the upper
BB ("BB1") sand with 15 psia of pressure depletion and
approximately 6.6 meters of net oil pay in the lower BB ("BB2")
sand with 25 psia of pressure depletion. Lastly,
approximately 3.3 meters of net oil pay was encountered in the CC
sand with observed pressure depletion of approximately 45
psia. In summary, the AA and upper BB1 sands were thicker and
structurally higher than pre-drill estimates and the CC sand was as
expected.
Once the rig has moved off location, completions will be run on
the L53-DD7 and L53-DD8 wells, and production will commence from
these two wells in addition to production testing of the L53-BB1
and L53-AA2 exploration wells. The L53-DD5ST1 well will also
undergo a conversion from beam pump to electrical submersible pump
and will be brought back onto production. It is anticipated
that production and production testing results will be announced in
approximately four weeks.
The L53-DD7 well marks the end of the second Thailand drilling phase in 2020 with a
possible third phase, which would include the L53AC-E exploration
well, that may commence prior to year-end 2020.
COVID-19 Coronavirus
The operations in Thailand of
Pan Orient Energy (Siam) Ltd. ("POS") continue to be somewhat
affected by the worldwide COVID-19 coronavirus pandemic. The
Thailand government imposed a
state of emergency in late March, giving it wide-ranging powers to
address the crisis. Domestic travel restrictions have now
been eased but a travel ban on most foreigners entering
Thailand remains in effect.
Overall, the infection and death rate has been much lower in
Thailand than in most western
nations.
Prudent measures have been taken by POS to help protect the
health and safety of staff, which are of paramount
importance. Fortunately, POS has been able to complete the
first and second phases of the 2020 Thailand drilling program. POS
and Pan Orient are well-positioned to withstand these unprecedented
events. The Company is optimistic about a slow return to
normal operations and less volatile market conditions but the
outlook for world oil prices remains somewhat uncertain.
Pan Orient is a Calgary,
Alberta based oil and gas exploration and production company
with operations located onshore Thailand and in Western Canada.
This news release contains forward-looking information.
Forward-looking information is generally identifiable by the
terminology used, such as "forecast", "expect", "believe",
"estimate", "should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release
includes references, express or implied, to drilling plans,
production commencement and well production tests in
Thailand. By their very nature, the forward-looking
statements contained in this news release require Pan Orient and
its management to make assumptions that may not materialize or that
may not be accurate. The forward-looking information
contained in this news release is subject to known and unknown
risks and uncertainties and other factors, which could cause actual
results, expectations, achievements or performance to differ
materially, including without limitation: changes in project
schedules, regulatory changes and delays, operating and reservoir
performance, the results of exploration and development drilling
and related activities, supply, demand and resulting prices for oil
and gas, the impact of the COVID-19 coronavirus, other technical
and economic factors or revisions and other factors, many of which
are beyond the control of Pan Orient. Although Pan Orient
believes that the expectations reflected in its forward-looking
statements are reasonable, it can give no assurances that the
expectations of any forward-looking statements will prove to be
correct.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Pan Orient Energy Corp.