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TICKERS: POE

Company Achieves Solid January Oil Sales
News Update

Source:

The oil sold came from Pan Orient Energy's Thailand operations, on which it provides an update.

Pan Orient Energy Corp. (POE:TSX.V) announced in a news release that oil sales from its L53 Concession in Thailand were strong in January 2020.

In line with the ongoing trend, oil sales from Concession L53 clocked 2,081 barrels of oil per day (2,081 bbl/d) in January 2020. The monthly sales of the previous three months were 2,404 bbl/d in December, 2,542 bbl/d in November and 2,447 bbl/d in October. Monthly sales were lower due to the L53-DD5ST1 well getting shut in on Jan. 17, 2020, after its 90-day test production period.

"We are now firmly backed by a new oil sales agreement effective Feb. 1, 2020, that will better reflect the value of Concession L53's sweet, low sulphur oil that is experiencing increased demand since the implementation of the IMO2020 low sulphur regulations that came into effect on Jan. 1, 2020," President and CEO Jeff Chisholm said in the release.

Regarding drill testing, the L53-DD6ST2 appraisal well, which has been on production since Feb. 11, 2020, averaged 967 bbl/d in the previous 24 hours "from 7.4 meters (7.4m) of perforations within the BB/CC sand with a water cut of 4%," the release noted. The water continues to decrease.

As for the L53-BB1 exploration well, drilling started there Feb. 4, 2020, about 1.1 kilometers (1.1 km) north of the L53-DD well pad. Activity, however, was suspended so the well pad could be reinforced. That will be done over the next two weeks, the company stated.

Subsequently, drilling commenced on Feb. 12 at the L53-AA2 exploration well about 1.4 km west of the L53-DD well pad. L53-AAW is targeting a structural closure about 973m northwest and updip from the sub-commercial hydrocarbons that the L53-DD6ST1 well encountered.

Once drilling finishes at L53-AA2, which is expected about 14 days from the onset, it will begin at the L53-AA1 exploration well.

Pan Orient stated that in 2020 it intends to drill four firm exploration wells, four development or appraisal wells (within the L53DD and L53AA South fields), one L53DD water disposal well and 10 workovers. The approved budget for all of this is CA$24 million, which will come from cash flow from the Thailand operations.

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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. Click here for important disclosures about sponsor fees.
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