Pan Orient Energy Reports 2013 Q1 Results; 96% Drop in Net Income, Thai Outlook Uncertain

By
A A A

Pan Orient Energy Corp. (POE.V) today provided highlights of its 2013 first quarter results.

Highlights:

Net income: $341,000, compared to 8,124,000 for Q1 2012, a drop of 96%

EPS: $0.01, compared to $0.14 for Q1 2012.

Outlook

The L53-G3ST1 well, the second appraisal well to the L53-G2 oil discovery, has just completed drilling to a measured depth of 1,500 meters (1,250 meters true vertical depth) at a subsurface location approximately 350 meters south of the L53-G2 oil discovery, and is currently logging. Prior to release of the E-01 drilling rig at the end of the current drilling campaign, one additional well is planned for L53-G field and three additional wells are planned to target the shallow sands in various fault compartments within the L53-D East structure. The Thailand capital budget is being increased approximately $8.7 million for the addition of these four wells and recompletion activities.

The 260 square kilometer 3D seismic survey covering the northern portion of Concession L53 and the adjacent lands in Concession L45 is expected to be completed in June 2013 and set up an exploration drilling program to commence in 2014.

Oil production averaged 879 BOPD for the month of April. Oil production is currently 1,156 BOPD with a target at the end of the current drilling program of greater than 1,500 BOPD. As expected, the L53-A4ST1 well has now been shut in as a result of high water cut, resulting in a decrease in production of 50 BOPD from the last production update on April 25th. The L53-DC well, which represented 175 BOPD in the last production update, is shut-in pending the arrival of a workover rig to perforate the "A1" sand. A workover is also planned for the L53-DST3 well to complete a lower zone with previously untested deep "C" sands. The recently announced oil discovery at L53-G2 continues to perform well with production averaging approximately 340 BOPD with a 0.5% water cut.

The average production for the remainder of the year will be severely impacted by the time required to receive approval of the L53-G production license and associated production EIA. Until a production license is granted over the L53-G field, wells in the L53-G field will be shut-in at the end of their respective 90 day test periods as per government regulations. Historically, it has been an approximately 90 day period from the submission of the production license application to approval. It is expected that sufficient data will be available to complete an application in June 2013. Production environmental approval has historically taken substantially longer than 90 days, but in a number of cases approval has been granted to extend the 90 day production test period until the environmental approval has been received Given these uncertainties, an accurate estimate of what production will average for the remainder of 2013 is not possible.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks:

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

74,282,785
  • $10.84 ▲ 11.64%
60,794,128
  • $17.12 ▲ 0.71%
55,628,662
  • $35.59 ▼ 1.00%
55,306,290
  • $116.47 ▲ 0.14%
55,118,241
  • $39.75 ▼ 0.43%
53,597,648
  • $9.41 ▲ 8.29%
41,889,990
  • $47.98 ▼ 1.48%
35,692,375
  • $97.34 ▼ 0.57%
As of 11/21/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com