Mr. Jeff Chisholm reports
PAN ORIENT ENERGY CORP. L53-DD2 OIL APPRAISAL - 658 BOPD
Pan Orient Energy Corp.'s L53-DD2 appraisal well is on a 90-day production test and currently producing at a steady state of approximately 659 barrels per day (b/d) of 23.9-degree API oil with a basic sediment and water (BS&W) of 1.47 per cent from the "EE sand" through 6.4 metres of perforations between the depths of 1,204.2 to 1,210.4 metres (1,116.4 to 1,121.3 metres true vertical depth). L53-DD2 has averaged 658 b/d during the past five days of testing. The well is on beam pump with the fluid level at approximately 420 metres measured depth (pump depth: 1,194 metres measured depth). The L53-DD2 well commenced a 90 production test of the EE sand on Nov. 26, 2018, the same day approval was received from the Thailand Department of Mineral Fuels.
The EE sand at L53-DD2 is the deepest of four oil-bearing sands encountered in the well and represents 3.9 metres (true vertical thickness) of the 32 metres of total interpreted net oil pay encountered in the well. Production from the EE sand will continue for the remainder of the 90-day test period. Test results are not necessarily indicative of long-term performance or of ultimate recovery.
A total of five oil-bearing sands (AA, BB, CC, DD and EE) have been encountered within the L53-DD field with the lowest oil-bearing sand in each of the two wells drilled on test (DD and EE sands). The AA sand was not encountered at L53-DD2, it was faulted out and never a target, and the EE sand encountered at L53-DD1 was below the oil water contact. The BB, CC and DD sands were oil bearing in both wells and share the same oil water contacts with zones in the L53-DD2 well approximately 24 to 29 metres structurally higher than those at L53-DD1. Each zone appears to have a separate oil water contact, though the DD and EE sands may be in communication based on pressure data. The best sands (AA, BB and CC) based on thickness and reservoir quality, have yet to be tested.
Total concession L53 production is currently 1,759 b/d (879 b/d net to Pan Orient's 50.01-per-cent interest), up 310 per cent from the third quarter 2018 average of 214 b/d net to Pan Orient's 50.01-per-cent interest. The DD sand at L53-DD1 has averaged 740 b/d since the Nov. 29, 2018, press release.
2019 Thailand drilling program
A two-appraisal-well drilling program is planned to commence in late January to early February, 2019, and will include one appraisal well drilled from the existing L53DD well pad (L53-DD3) and an appraisal well at L53-B (L53-B1).
Further exploration drilling is planned at a new exploration well location approximately 600 metres north of the DD well pad and at L53AC-E, located approximately 15 kilometres northwest of the L53-D oil field. Current estimates are for drilling to commence in August, 2019, subject to various approvals.
Pan Orient is a Calgary-based oil and gas exploration and production company with operations currently
located onshore Thailand, Indonesia and in Western Canada.
We seek Safe Harbor.
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