Shares of Calgary-based Pan Orient Energy (TSX: V.POE, Stock Forum) climbed 11% to $5.55 Monday, after the company announced that the testing of the L44-W exploration well has confirmed the discovery of a new oil field straddling concessions L44 and L33 onshore Thailand.
Pan Orient says L44-W is currently producing 27 to 32 degree API oil through an electrical submersible pump at a rate of approximately 1,220 barrels of oil per day with a water cut of less than 0.5%.
As part of its near term plans, the company says it will drill a second well on the L44-W drill pad vertically looking for the field oil water contact upon expiry of the 90 production test period.
"L44-W marks the sixth commercial volcanic reservoir discovery (NSE south, central and north, NSE-F1 and NSE-E1) that Pan Orient has made since becoming operator of the L44 concession in 2005. This most recent result underlines the quality of Pan Orient's remaining undrilled exploration portfolio and sets the stage for continued low cost production growth through the drill bit. In addition to L44 and L33 concessions exploration in 2009, we anticipate the first two exploration wells in the 100% owned and operated concession L53 to be drilled in October. This will be followed up by a multi well high impact onshore Indonesia exploration program starting in early 2010,” says Pan Orient president and CEO Jeff Chisholm.
On the company’s Bullboard, zorgon1 said:
With the positive results from the L-44W reservoir, I believe what the market anticipated and is now confirmed by this announcement is the implications on P2 reserves. Those who know much more than I will be pouring over the details and when the analysts next come out with reserve estimates, I think we'll be very pleasantly surprised. This years production exit numbers are sure to take a big jump based on today's news assuming permits are granted in a timely manner[sic].
