Pan Orient Energy Corp. (POE.V) today provided highlights of its
2013 first quarter results.
Net income: $341,000, compared to 8,124,000 for Q1 2012, a drop
EPS: $0.01, compared to $0.14 for Q1 2012.
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.
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