CALGARY, AB, Jan. 6, 2022 /CNW/ - Pan Orient Energy Corp.
("Pan Orient" or the "Company") (TSXV: POE) 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 3,076 BOPD, 2,745 BOPD and 2,732 BOPD
(1,538 BOPD, 1,373 BOPD and 1,366 BOPD net to Pan Orient's 50.01%
equity interest) in October, November and December 2021, respectively. Approximately 26
BOPD (13 BOPD net to Pan Orient's 50.01% equity interest) has been
shut-in due to flooding since October 13,
2021 and will continue to be shut-in for approximately
another three weeks.
Preliminary plans for 2022, subject to partner approval, include
12 workovers, with ten of these in the Kamphaeng Sean fields
(L53-A, B, D and G) and the remaining two in the DD field. The
Company also anticipates the drilling of up to three wells, all
located in the DD field. Workover operations are anticipated to
commence shortly after the arrival of new perforation charges in
late January 2022 and drilling to
commence upon the availability of a drilling rig in late March to
April 2022.
In late December 2021 a revised
geological model and reservoir simulation history match / forecast
was completed for all sands in the DD field, in addition to a
thorough review of all wells located in the Kamphaeng Sean fields.
This information has been provided to the Company's third-party
reserves evaluator and will be reflected in the final year-end 2021
reserves estimates that are expected to be announced in early
February 2022.
The L53-DD6ST2 well was tested in the previously unproven AA1
zone and averaged 133 BOPD in November and 99 BOPD in December (67
BOPD and 50 BOPD respectively net to Pan Orient's 50.01% equity
interest) with an average water cut of approximately 60%. The well
is located just above the oil water contact in the northern limit
of the accumulation and has potentially proven a modest new
accumulation up-dip of the well, based on existing well control. In
February the well will commence commingled production from the AA1
sand and the underlying C1 sand after the removal of the bridge
plug that currently isolates the AA1 sand. No reserves had been
attributed to this sand in the year-end 2020 reserves report.
The L53-DD10 well was tested in the previously unproven AA2 sand
and averaged 183 BOPD (92 BOPD net to Pan Orient's 50.01% equity
interest) with a water cut of approximately 71% since coming on
stream November 16, 2021 until
December 31. As was the case with the
AA1 sand in the DD6ST2 well, no reserves had been attributed to
this sand in the year-end 2020 reserves report.
CORPORATE
Since the press release of October 28,
2021, which announced the Company's intention to initiate a
process to accelerate shareholder value, the Company has been
actively engaged with numerous third parties that are currently
evaluating the Thailand and
Sawn Lake Canada assets. It is
considered highly unlikely that a binding offer for the
Thailand asset will occur prior to
the completion of the Concession L53 third party year-end 2021
reserves report that is expected to be completed in early February
2022.
The press release of October 28,
2021 also announced the Company's plan to pay a $0.40 per share special distribution to
shareholders. The special distribution will be a return of
capital, which is expected to be more tax advantageous to
shareholders than a dividend. To permit the special
distribution, shareholders will be asked to approve a
reorganization of the Company's share capital at a shareholders'
meeting on January 18, 2022. No
exchange of share certificates will be required. Full details
of the reorganization and planned $0.40 per share special distribution are
contained in the Company's December 10,
2021 management information circular, available through the
Company's profile at www.sedar.com. Pan Orient's directors
unanimously recommend that shareholders vote in favor of the
reorganization at the meeting.
Steps are being taken by the Company to minimize the risk of
COVID-19 transmission at the Annual and Special Meeting of
Shareholders on January 18, 2022.
Although the meeting will be held in person, Pan Orient will be
restricting physical access to the meeting and there will be no
corporate presentation by management (instead, a corporate
presentation will be posted on the website). Pan Orient
shareholders are encouraged to vote by proxy rather than attending
the meeting in person.
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
well drilling programs; reserves estimates; the status of a process
to accelerate shareholder value; and a planned special cash
distribution to shareholders and the timing and manner of that
distribution. 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.