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TICKERS: POE

Oil Producer in Thailand Averaged Oil Sales of Nearly 2,500 bpd in October
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Two wells in Thailand are producing oil, and the drill program continues.

Pan Orient Energy Corp. (POE:TSX.V) provided in a news release the results of recent testing at three wells at and next steps for its jointly owned L53 onshore concession in Thailand.

Regarding the L53-DD5ST1 exploration well drilled in the AA South prospect, it averaged the equivalent of 489 barrels of oil per day sales of 18 API oil with a 4.2% basic sediment and water content. These results are from the first 72 hours of a 458-hour test period. This production, in the AA2 sand, came from 3.3 meters (3.3m) of perforations between the true vertical depths of 1,060.9m and 1,057.6m.

L53-DD5ST1 will be on production for 90 days from its Nov. 6 start date. These production test results will dictate whether or not further appraisal drilling is carried out in the AA South prospect. After, L53-DD5ST1 will be shut in while approvals are obtained, from the Thailand government, of a new production area license and a production environmental impact assessment. Approvals are expected by May 2020.

As for the L53-DD6ST1 exploration well, drilled into the easternmost downdip extent of the AA prospect, produced only a minor amount of oil from the AA2 sand on day two of testing but afterward only generated water. Thus, the well failed to produce at commercial rates.

To follow up on this result, an exploration well will be drilled in the next program about 50m structurally higher than where L53-DD6ST1 penetrated sand.

Concerning the L53-B1 appraisal well, it encountered a combined roughly 35m of net oil pay in five main sandstone intervals between the true vertical depths of 844m and 1,043m. Later this week, the K40-A sand in L53-B1 will be perforated between the 1,035.2m and 1,038.2m true vertical depths, and the well will be put on production.

In terms of recent sales of oil produced at the Thailand concession, they averaged 2,447 barrels of oil per day (2,447 bpd) in October 2019 and, including oil yielded from L53-DD5ST1 testing, were up to 2,697 bpd on Nov. 9. This exceeds the 1,432 bpd production estimated for this period in the Dec. 31, 2019, reserves report.

The next drill program in Thailand is slated to start in January 2020 and will encompass four or five exploration wells (three or four around the L53-DD oil field and one around the L53-D field) along with a single appraisal well in the L53-DD field drilled from the L53-DD6ST1 cellar.

As for Pan Orient's production sharing contract for East Jabung in Indonesia, drilling will start there shortly, immediately after the drill rig acceptance procedures for the Anggun-1X exploration well are finalized. This is expected to be done by Nov. 13.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pan Orient Energy Corp. Click here for important disclosures about sponsor fees.
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