In a news release, Pan Orient Energy Corp. (POE:TSX.V) reported its Q2/20 financial and operational results.
"Despite the challenging financial and operating environment experienced in 2020, the company has completed the drilling of two potential new pool oil discoveries and one successful L53-DD oilfield appraisal well while staying within the bounds of cash flow generated from Thailand oil production," President and CEO Jeff Chisholm said in the release.
Operationally, in Thailand, six wells were drilled so far in 2020. Four were successful, and the other two were abandoned. Drilling of a seventh well, L53-DD7, is currently underway. Once that is done, well completions will be run on L53-DD8, L53-BB1ST1 and, if warranted, L53-DD7. Immediately thereafter, production/testing will begin.
In the first half of the year, the company reported that oil sales from Concession L53 amounted to 1,123 barrels of oil per day net to Pan Orient's 50.01% equity interest in the joint venture. Adjusted funds flow from H1/20 operations there was CA$5.7 million.
As for its joint venture operations in Indonesia, Pan Orient is withdrawing from those and closed its Jakarta office on March 31, 2020.
Regarding its Swan Lake project in Canada, the energy company does not plan any commercial development there in the current market primarily because of ongoing low heavy oil and bitumen prices.
In terms of finances at the corporate level, Pan Orient's total adjusted funds flow from operations were CA$1.2 million in Q2/20 and CA$5.6 million in H1/20. The loss attributable to common shareholders for Q2/20 was CA$1 million and for H1/20, CA$58.2 million, "primarily resulting from a net $57.6 million impairment charge for the Sawn Lake, Alberta Exploration and Evaluation assets at March 31, 2020," the company reported.
Because the normal course issuer bid for the May 16, 2019, to May 16, 2020, period expired during Q2/20, Pan Orient renewed it. With the new bid, it may purchase, for cancellation, up to 4,228,734 of its common shares between May 21, 2020 and May 20, 2021.
As of June 30, 2020, Pan Orient had no debt and CA$24.8 million in working capital and noncurrent deposits. "The company remains in a strong financial position," Chisholm added.
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