CALGARY, AB, Aug. 20, 2020 /CNW/ - Pan Orient Energy Corp. ("Pan Orient" or the "Company") (TSXV: POE) reports an update on Thailand drilling.
THAILAND
Concession L53 Onshore (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)
The L53-DD7 well was drilled from the DD oilfield wellpad to a total measured depth of 1,467 meters (1,113 meters true vertical depth) at a subsurface location 607 meters south-southwest. This well was drilled to a target location substantially down dip from the crest of the structure at the BB/CC and DD sandstone reservoir levels with the intention of using it as a water injection/disposal well, or a producer, depending on results.
L53-DD7 encountered a total of approximately 29.9 meters of net oil pay. This includes the thickest AA sand encountered to date with approximately 16 meters of net oil pay with the top sand approximately three meters high to the L53-DD1 well, the only other well currently producing from the AA sand located approximately 375 meters to the north east. No oil water contact was observed on logs and wireline pressure data indicated low depletion of approximately 35 psia. In addition, there was approximately four meters of net oil pay encountered in the upper BB ("BB1") sand with 15 psia of pressure depletion and approximately 6.6 meters of net oil pay in the lower BB ("BB2") sand with 25 psia of pressure depletion. Lastly, approximately 3.3 meters of net oil pay was encountered in the CC sand with observed pressure depletion of approximately 45 psia. In summary, the AA and upper BB1 sands were thicker and structurally higher than pre-drill estimates and the CC sand was as expected.
Once the rig has moved off location, completions will be run on the L53-DD7 and L53-DD8 wells, and production will commence from these two wells in addition to production testing of the L53-BB1 and L53-AA2 exploration wells. The L53-DD5ST1 well will also undergo a conversion from beam pump to electrical submersible pump and will be brought back onto production. It is anticipated that production and production testing results will be announced in approximately four weeks.
The L53-DD7 well marks the end of the second Thailand drilling phase in 2020 with a possible third phase, which would include the L53AC-E exploration well, that may commence prior to year-end 2020.
COVID-19 Coronavirus
The operations in Thailand of Pan Orient Energy (Siam) Ltd. ("POS") continue to be somewhat affected by the worldwide COVID-19 coronavirus pandemic. The Thailand government imposed a state of emergency in late March, giving it wide-ranging powers to address the crisis. Domestic travel restrictions have now been eased but a travel ban on most foreigners entering Thailandremains in effect. Overall, the infection and death rate has been much lower in Thailand than in most western nations.
Prudent measures have been taken by POS to help protect the health and safety of staff, which are of paramount importance. Fortunately, POS has been able to complete the first and second phases of the 2020 Thailand drilling program. POS and Pan Orient are well-positioned to withstand these unprecedented events. The Company is optimistic about a slow return to normal operations and less volatile market conditions but the outlook for world oil prices remains somewhat uncertain.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations located onshore Thailand and in Western Canada.