CALGARY, AB, Dec. 1, 2020
/CNW/ - Pan Orient Energy Corp. ("Pan Orient" or the "Company")
(TSXV: POE) reports an update on Thailand operations.
Thailand Concession L53 (in which Pan Orient has 50.01%
equity ownership)
L53-DD9 Appraisal well
As announced on November 12, 2020,
the L53-DD9 appraisal well encountered approximately 29 meters of
combined net oil pay in the four main producing sands (AA, BB, CC
and DD). Of particular note, the CC sand was encountered 5 meters
structurally higher than any previous well, with an estimated 18.4
meters of net oil pay.
The L53-DD9 well was put on production using an electrical
submersible pump on November 20, 2020
through 12.9 meters of perforations in the CC sand. The well has
averaged 980 barrels of oil per day ("BOPD"), 490 BOPD net to Pan
Orient's 50.01% equity interest, with a water cut of 0.3% since the
well cleaned-up on November 24th and
has produced a cumulative 8,820 barrels of oil (4,411 barrels net
to Pan Orient's 50.01% equity interest) since commencing
production. Test results are not necessarily indicative of
long-term performance or of ultimate recovery.
L53-DD4 Workover
The L53-DD4 well had been shut-in since October 10, 2020 due to water handling
constraints. The well was producing 21 BOPD (11 BOPD net to
Pan Orient's 50.01% equity interest) and with a water cut of 98.5%
in the five day period prior to shut-in and workover. The well was
put back on production on November
23rd and has averaged 351 BOPD (176 BOPD net to Pan Orient's
50.01% equity interest) with a water cut of 63% since November 26th.
Future Activities
Prior to year-end 2020, the Company expects to complete a
workover of the L53-B1 well and conversion of the L53-DD8 well to a
water disposal well. No further drilling activity is contemplated
until mid to late Q1 2021 when two appraisal wells are planned for
the L53-DD field to optimize reservoir drainage.
Thailand Production
Thailand Concession L53 oil sales averaged approximately 2,800
BOPD in November (1,400 BOPD net to Pan Orient's 50.01% equity
interest). Oil production on November
29th was 3,608 BOPD (1,804 BOPD net to Pan Orient's 50.01%
equity interest).
Updated Corporate Presentation
An updated corporate presentation is available on Pan Orient's
website (www.panorient.ca).
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 its 2020 Thailand
drilling program. POS and Pan Orient are well-positioned to
withstand these unprecedented events. The Company is
optimistic about a return to normal operations and less volatile
market conditions in 2021 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 production
expectations, production tests, regulatory approvals and drilling
plans 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.