RE:RE:Chen Lin / The Energy Report
"Based on volumetric studies conducted by international petroleum consultancy DeGolyer & MacNaughton (D&M), the Lemang block holds an estimated 511 million barrels of oil and 467 billion cubic feet of gas (gross recoverable prospective resources)".
A couple of points to consider....D&M will only have assigned these resources to the Lemang Block proper
and will have excluded the volumes sitting on POE's Block... (areally an increase of roughly 20pct). They are also likely a pre-drill estimate (????) and could be low(???).
Ramba now has three discovery/appraisal wells downdip of Pan Orient's block (and mapped closure) that have essentially proven up the structure. All other things being equal, Pan Orient controls the crest of the closure and one might speculate we will find even thicker hydrocarbon columns when Jeff Chisholm decides to drill the bump. He will then be in a position to force the unitization of the field. Being in a crestal position, he ought to end up with at least 20pct *POE77% WI of the field minimum....and possibly more if the amount of reservoir under closure is not a limiting factor. Judging by Ramba's well results, it is a gas condensate discovery and there are quite a few of these fields in the area, which leads me to suspect commercialization will not be an issue. I think the Indonesian Govt get 85% of profit oil--with 15% accruing to the PSC owners. I am a little rusty on Indonesian PSC terms, but I think the gas is split more favourably at 70/30 (????)
Ramba has essentially derisked this play for Pan Orient IMHO.(assuming the time structure map
that Pan Orient published is reliable...based on a few 2D lines)
The real question is why Jeff C wants to spin off 40%WI (reducing POE's share to 37%). As there are other undrilled bumps on Batu Gajah, perhaps he is angling for back exploration costs and a 3-4 well earning committment? That would be a pretty decent deal for POE.
I think this is a very promising development for POE. It also makes me wonder if and when the whole company will be sold to the highest bidder...Perhaps after the heavy oil properties in Canada get proven up and on production?
thomsoni