CALGARY, AB, Oct. 28, 2021 /CNW/ - Pan Orient Energy Corp.
("Pan Orient" or the "Company") (POE – TSXV) is pleased to provide
the following Operations and Corporate update. Please note
that all amounts are in Canadian dollars unless otherwise stated
and BOPD refers to barrels of oil per day.
THAILAND
Concession L53 (Pan Orient Energy (Siam) Ltd., in which Pan
Orient has 50.01% ownership)
Thailand oil sales for
Concession L53 averaged 2,259 BOPD, 3,135 BOPD and 3,024 BOPD
(1,130 BOPD, 1,568 BOPD and 1,512 BOPD net to Pan Orient's 50.01%
equity interest) in July, August and September respectively.
Oil sales in the first 23 days of October have averaged 3,191
BOPD (1,596 BOPD net to Pan Orient's 50.01% equity interest)
despite approximately 390 BOPD (195 BOPD net to Pan Orient's 50.01%
equity interest) that has been shut-in since October 13th due to the worst flooding conditions
experienced in the Suphan Buri region of Thailand since 2011. It is anticipated
this production will likely be back onstream within the next 14 to
21 days. In addition, two workovers are planned on the
L53-DD6ST2 and L53-DD10 wells with completion of both anticipated
within the next 14 to 21 days, and both targeting the AA2 sand that
has had no reserves attributed to it in the most recent third-party
reserves report. Production has been strong, near record
levels for Concession L53 and in-line with expectations based on
the recently completed reservoir simulation. Further
near-term increases are anticipated upon bringing back the
currently shut-in production and completion of the workover
program.
CORPORATE
The Company's board of directors are pleased to announce the
initiation of a process to accelerate shareholder value. It is
expected this process will involve both the Thailand assets and the Sawn Lake,
Canada assets, and be completed by
mid-2022. Discussions for both assets are currently underway
with interested parties. It seems most likely that no individual
potential purchaser is interested in both assets due to their
contrasting nature, and that distinct transactions are the more
likely outcome. It is intended that the proceeds from any
potential sale of any of the assets will be returned to Pan Orient
shareholders through a return of capital. This process is
deemed prudent at this time by the Company's board of directors
given the mid to late-stage development of Thailand, the desire to allocate no further
funds to the Sawn Lake asset, and current oil
prices.
Based on this new direction, the Company's working capital and
non-current deposits (approximately $31
million at June 30, 2021 held
in Canada and Thailand), strong Thailand production and excellent current
global oil prices, the Company is pleased to announce that it plans
to pay a $0.40 per share special
distribution to shareholders, subject to shareholder and regulatory
approval. The distribution is intended to be a return of
capital, which would require shareholder approval of a
reorganization of the Company's share capital. Pan Orient
anticipates that the required annual and special meeting of
shareholders will be held in mid-January 2022. If approved by
shareholders, the record date for the determination of shareholders
entitled to receive the distribution would be set and the
distribution paid in early-February
2022.
It is currently proposed that in the period after the sale of
the Company's oil and gas interests, and the distribution of the
vast majority of cash to shareholders, the Company will continue to
pursue international oil and gas opportunities with a substantially
scaled down cost
structure.
Pan Orient is a Calgary,
Alberta based oil and gas exploration and production company
with operations currently located onshore Thailand and Western
Canada.
This news release contains forward-looking information.
Forward-looking information is generally identifiable by the
terminology used, such as "expect", "believe", "plans", "estimate",
"should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release
includes, but is not limited to, references express or implied to
resumption and future levels of oil production; well drilling
programs; the initiation of a process to accelerate shareholder
value; a planned special cash distribution to shareholders and the
timing and manner of that distribution; and the Company's
intentions regarding operations after the sale of its oil and gas
interest and distribution of cash to shareholders. 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 reserves 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,
regulatory and legal requirements, shareholder opinions and voting
results, availability of other oil and gas opportunities 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.