news - 2/12/09

Dec 02, 2009 07:00 ET
Pan Orient Energy Corp.: Thailand L53-A Drilling Update

CALGARY, ALBERTA--(Marketwire - Dec. 2, 2009) - Pan Orient Energy Corporation (TSX VENTURE:POE)

L53 Concession

L53-A Exploration Well (100% WI and operator)

Pan Orient Energy Corporation is pleased to report that it has encountered greater than 40 meters of interpreted measured thickness net oil pay (approximately 26 meters true vertical thickness) within three separate sandstone reservoir intervals in the L53-A exploration well located in the 100% Pan Orient owned and operated L53 concession onshore Thailand. This analysis has been confirmed by third party independent petrophysical analysis and numerous RFT pressure data points indicating oil pressure gradients through the zones of interpreted hydrocarbon pay.

The L53-A exploration well was drilled approximately 1.5 kilometers south of the KS-1 well completed by British Petroleum in 1987 and put on production by the Thailand national oil company (PTTEP) in about 1997. The well has since produced approximately 330,000 barrels of oil from two sandstone reservoirs, the K30-B and K30-D with combined net pay of approximately six meters true vertical thickness, at 1,124 and 1,310 meters respectively. Each zone initially tested 250 bopd (500 bopd combined) and the well is still on production at approximately 24 bopd after 12 years. The K30-B zone in KS-1 is interpreted as being water bearing in L53-A. The approximately 4 meter thick net oil pay K30-D zone tested in KS-1 is significantly thicker at L53-A (approximately 22 meters of interpreted true vertical thickness net oil pay) and approximately 56 meters structurally higher, the top at 1,253 meters. Both wells appear to be in communication in the K30-D zone as RFT pressure points through the K30-D zone at L53-A indicated pressure depletion of approximately 150 to 200 psig from initial reservoir pressure. Two additional shallower sandstone reservoirs encountered at L53-A, the K30-A and K30-C, at 1,045 and 1,140 meters depth respectively, were at virgin reservoir pressure on RFT pressure plots.

The L53-A well has been cased to a depth of 1,327 meters with present operations comprised of drilling ahead in a secondary objective volcanic reservoir target. This secondary volcanic zone will be tested open hole prior to the testing through perforated casing of the shallower interpreted oil bearing sandstone reservoirs. Testing of the lower volcanic secondary target is anticipated to commence in the next seven to 10 days and the testing of the sandstone reservoirs immediately thereafter. Testing will be required to confirm the ultimate hydrocarbon potential of this well.

A second exploration well, L53-D will commence drilling immediately after L53-A, targeting conventional sandstone reservoirs in an independent structural closure defined on 3D seismic and located within this proven hydrocarbon basin located approximately 60 kilometers due west of Bangkok.

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