Pan Orient Energy Corp.: 2012 Year End Financial & Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwire) -- 03/28/13 -- Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE: POE) reports 2012 year-end and fourth quarter consolidated financial and operating results. Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day net to Pan Orient.
The Corporation is today filing its audited consolidated financial statements as at and for the year ended December 31, 2012 and related management's discussion and analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained online at or the Corporation's website, .
2012 RESULTS
2012 FOURTH QUARTER OPERATING RESULTS
OUTLOOK
Corporate
In November 2012 the Board of Directors of Pan Orient approved a total capital program of $96.7 million for Indonesia, Thailand and Canada for the 13 month period of December 1, 2012 to December 31, 2013. This included $19.0 million in Thailand for the drilling of five development / exploration wells plus 260 square kilometers of 3D seismic, and $54.2 million in Indonesia for five exploration / appraisal wells at the Citarum and Batu Gajah PSC's plus 4,000 square kilometers of 3D seismic and 657 kilometers of 2D seismic at the Batu Gajah, South CPP and East Jabung PSC's. A further $23.5 million of capital expenditures was expected by Pan Orient, through capital expenditures of Andora, for advancement of the SAGD pilot program. Andora is a subsidiary of Pan Orient and as such, the financial statements of Pan Orient at December 31, 2012 include the $24.0 million of cash held in Andora, and capital expenditures of Andora for the SAGD pilot program will be reported as capital expenditures in the financial statements of Pan Orient as they are incurred.
In light of recent drilling results and updated actual work program cost, the Indonesian budget has been reduced by approximately $5 million dollars related to a deferral of the Kemala-1 exploration well at the Batu Gajah PSC into 2014. The capital budget associated with the drilling of Kemala-1 has now been reallocated to three additional wells in Thailand Concession L53 (to a total drilling program of eight wells) at an estimated cost of approximately $5.7 million.
With this reallocation of the capital budget, the 2013 capital budget, after adjusting for capital expenditures incurred in the fourth quarter of 2012, is $79.4 million with $18.5 million for Thailand, $37.7 million for Indonesia and $23.2 million for the SAGD demonstration project of Andora.
Indonesia
The Indonesian 2013 revised capital budget of $ 37.7 million includes completion of the Shinta-1 exploration well and the Buana-1 appraisal well in the Batu Gajah PSC. As previously announced, the Shinta-1 well encountered sub-commercial oil in the primary Lower Talangakar sandstone target.
The Buana-1 well, the second well in the program, is an updip appraisal of the North Tuba Obi-1 gas discovery drilled in 2011, and has just been drilled to a total depth of 3,396 feet and logged. Excellent quality reservoir sands approximately 30 meters in thickness were encountered in the Lower Talangakar sandstone primary objective, however open hole wire line logs and pressure data indicated the sands to be water bearing. These results suggest the Buana-1 (previously referred to as North Tuba Obi-2) and the North Tuba Obi-1 ("NTO-1") fault compartments are not in communication, meaning the gas accumulation encountered in the NTO-1 well in 2011 is limited and sub-commercial. The Buana-1 well is currently drilling towards a total depth of approximately 3,800 feet, which is the depth of the commitment to the Indonesian oil and gas regulator and is within the secondary basement reservoir objective. The total cost for the Batu Gajah two well drilling program is approximately $7.7 million.
In light of recent drilling results in the western portion of Batu Gajah PSC, the decision has been made to defer the drilling of Kemala-1, a third well initially planned for 2013, until 2014 when the acquisition and interpretation of the recently commenced 400 square kilometer 3D seismic program has been completed.
The 430 kilometers of 2D seismic at East Jabung is expected to commence by May 2013 and the 227 kilometer 2D seismic program at South CPP is near completion. In late 2013, Pan Orient is expected to have all of the 2D seismic data acquired in South CPP and East Jabung and the 3D in Batu Gajah interpreted and will be in position to choose the best targets for a 2014 drilling campaign from an array of prospects located over a large, highly prospective region on the basis of recently acquired, high quality seismic data.
The Citarum drilling program will recommence in May 2013 with drilling of the remaining section down to target at Cataka-1A. The rig contract for the recommencement of drilling of the Cataka-1A well has been signed with an experienced Indonesian drilling contractor.
Thailand
The capital budget previously allocated to the Kemala-1 well at the Batu Gajah PSC in Indonesia will be redeployed to Thailand with the drilling program expanded to a firm eight well program, up from the original five firm and two contingent wells initially planned. The 2013 Thailand revised capital budget of $18.5 million includes the drilling of eight wells in Concession L53 in addition to approximately 240 square kilometers of 3D seismic data.
Production
Thailand oil production exited 2012 at approximately 1,500 BOPD but has averaged 824 BOPD in the first two months of 2013 mainly due to downtime associated with workovers, the inability to conduct simultaneous operations on pads while a well is drilling and declining oil production rates from the deeper "C" sandstone zones at the L53-DST3 well (no reserves had been attributed to the "C" sands in the recent December 31, 2012 reserve report as they were considered depleted). Current production is approximately 1,000 BOPD and the L53-A4ST1 exploration well is expected to commence testing shortly. Updated guidance for 2013 oil production will be provided at the completion of the drilling of the two remaining exploration wells at L53-G2 and L53-F and the appraisal well at L53-DC3. Success at any of these three remaining wells will likely result in the drilling of a number of additional appraisal / development wells from available well cellars. The L53-A Central and L53-A West prospects that were identified on the recently acquired L53 3D seismic survey will not likely be drilled until late 2013 or early 2014 due to delays in the environmental permitting process. The 2014 drilling program will also include additional wells that will be targeting prospects defined by the L53 and L45 3D seismic surveys currently being acquired.
Drilling
The L53-DC1 well, announced earlier as a new fault compartment discovery, is currently producing at approximately 147 BOPD of heavy 16 degree API crude and with a water cut of 30% from the "A2" lower sand.
The L53-DC2 well, a successful appraisal of the new fault compartment discovered by L53-DC1, is currently producing at 267 BOPD with a water cut of 0.8% from the "A3" sand. Both of the DC wells possess three to four additional uphole, oil bearing sands that will be put on production at a future date as existing zones water out.
The L53-A4 well, targeting the L53-H prospect, was unsuccessful as was the L53-DB1 well targeting the L53-D West prospect. The L53-DB1 well has been converted to a water disposal well and L53-A4 well was sidetracked (L53-A4ST1 well) to test a small independent structural closure south east of the L53-A field and encountered approximately seven meters of interpreted net oil pay in the "K40-A" sand. This well is expected to start testing soon.
The L53-G2 well is currently drilling ahead at a depth of approximately 550 meters and is targeting the L53-G prospect that was originally tested by the L53-G well in early 2012. The original L53-G well tested approximately 25 BOPD from the "K40-A" sandstone zone before being shut in. Subsequent reprocessing of the 3D seismic data in this area indicates the well penetrated a large fault immediately below the oil pay in the "K40-A" sand and missed the remainder of the "K40-A" sand and the "K40-B", "C" and "D" sands that were located in structural closure.
Upon completion of drilling at L53-G, the rig will move to either the L53-F exploration prospect located south of the L53-D East field or the L53-DC3 location which is an appraisal of the largest, structurally highest fault compartment in the L53-D East field. This compartment was originally tested by the L53-D discovery well drilled in 2009 that encountered approximately eight meters of oil pay in the "A7" sand. The six sands above the "A7" which are the primary reservoirs in the adjacent down thrown fault compartments penetrated by the L53-D2ST3, L53-DC1 and L53-DC2 wells were faulted out in the original L53-D well and will be targeted by the upcoming L53-DC3 well.
Canada - Sawn Lake (Operated by Andora, in which Pan Orient has a 71.8% ownership)
Activities are currently underway at the Sawn Lake SAGD demonstration project for drilling of the SAGD well pair in the third quarter and start-up of steam operations in the fourth quarter of 2013.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. 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: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, 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.
To view the map and table associated with this release, please visit the following links:
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.
Contacts:
Pan Orient Energy Corp.
Jeff Chisholm
President and CEO (located in Bangkok, Thailand)
Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
(403) 294-1770
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 28.03.2013 - 12:30 Uhr
Sprache: Deutsch
News-ID 244070
Anzahl Zeichen: 0
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
Diese Pressemitteilung wurde bisher 225 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Pan Orient Energy Corp.: 2012 Year End Financial & Operating Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Pan Orient Energy Corp. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
