full poe announcement

Sep 15, 2009 09:06 ET
Pan Orient Confirms Bo Rang "A" and Bo Rang "B" Thailand New Field Discoveries

CALGARY, ALBERTA--(Marketwire - Sept. 15, 2009) - Pan Orient Energy Corporation (TSX VENTURE:POE) is pleased to report that it has confirmed the testing of oil at commercial rates from two separate new field discoveries, the Bo Rang "A" and Bo Rang "B" fields at 686 bopd plus 3.29 MMscfg/d and 36 bopd respectively.

Bo Rang "A" Field - BR-1RDST1 Exploration well (60% WI and operator)

The Bo Rang "A" field discovery well, BR-1RDST1 was drilled to a measured depth of 1,137 meters encountering the inferred gas oil contact within the target volcanic reservoir at a depth of 663 meters true vertical depth ("TVD") and drilling to a final depth of 676 meters TVD along a 336 meter horizontal section. Approximately 3,113 barrels of drilling fluid were lost to the formation while drilling the horizontal section, inferring excellent permeability.

The well is currently producing on a 90 day production test allowance at a stabilised, restricted free flow rate of 686 bopd of 27-28 API gravity oil plus 3.29 MMscfg/d and a decreasing water cut of approximately 3.8%, composed primarily of drilling fluids.

BR-1RDST1 was the first horizontal well drilled into the Bo Rang reservoir and confirms the successful application of this and other techniques that were utilised during the drilling of this well.

Bo Rang "B" Field - BR-2ST1 Exploration well (60% WI and operator)

The Bo Rang "B" field discovery well BR-2ST1 was originally drilled to test the main lower volcanic reservoir at a depth of approximately 665 meters TVD which had flowed oil at rates up to approximately 1,348 bopd in the adjacent BR-2 wellbore (prior to having abandoned the well due to mechanical problems), but tight at the BR-2ST1 well location. Subsequently, the lower tight volcanic zone was isolated and a shallow volcanic approximately 20 meters thick at a depth of 474 meters TVD was perforated.

The well is currently on beam pump at a stabilised rate of approximately 35 bopd of 22-23 API gravity oil and a water cut of 0.86%. This result is remarkable given: a) the lack of drilling fluid losses observed during drilling (low permeability), 2) the zone was a cased hole completion which experience has shown generally flows at much lower rates (formation damage) than the typical open hole completions used on the majority of wells, and 3) the BR-2 well penetrated the shallow volcanic zone at the extreme northern edge of where this zone is interpreted on 3D seismic to be present (drainage boundaries). The current plan is to drill this same productive interval horizontally and complete it open hole as detailed above for the successful BR-1RDST1 well.

Summary

The Bo Rang and L44-W region of Concession L44 has been somewhat challenging to date with both technical and operational issues encountered. The results presented here indicate that Pan Orient has managed to adapt our drilling program to these complex reservoirs and has outlined a potentially very substantial resource at Bo Rang "A" and Bo Rang "B" in addition to that at L44-W earlier this year. There remain three well cellars at the Bo Rang drill pad and four at the L44-V drill pad (one well currently drilling, one awaiting testing) that will allow an additional seven wells to be drilled into the Bo Rang "A" and "B" pools prior to year end at which time approval for a new Production License ("PL") is anticipated over the Bo Rang and L44-W oil discoveries. This is in addition to another two to three wells at L44-W, one of which is currently drilling and two awaiting testing (simultaneous drilling and testing is not possible at L44-W due to physical constraints at the well site). Environmental impact assessments will be submitted to the Government of Thailand on September 25, 2009 for nineteen surface pad locations from which multiple wells will be drilled from each over the L44-W (in both the L44 and L33 concessions), Bo Rang "A", Bo Rang "B" and NSE-F1 discoveries in early 2009. A third party NI51-101 compliant contingent and prospective resource assessment is currently being conducted by an independent third party in support of the PL application to the Government of Thailand. The final results of this resource estimate are anticipated within the next 3 to 5 days and will be announced upon receipt. It is expected that the majority of the contingent resources estimated in this third party report will be classified as reserves upon the granting of a production license by the Government of Thailand, expected at or prior to year end 2009.

In addition to the program outlined above, plans are to drill two prospects within the 100% owned and operated Concession L53 and one well at the high impact Si Thep deep prospect in Concession L44 (60% owned and operated) by year end 2009.

Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.

This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. 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 reserve 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 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.