Pan Orient Energy Corp. (POE:TSX.V) recapped in a news release its Q3/20 operational and financial results.
Most recently, in Thailand, drilling of the L53-DD9 appraisal well was done, which encountered a total of about 29 meters of net oil pay in the four primary producing sands, AA, BB, CC and DD. Testing of L53-DD9 should start in the next 10 days.
The company noted that the "L53-AA2 exploration well represents a potential new pool discovery, outside the recently approved L53 South AA Production Area." The well was put on production in Q3/20 and yielded 45 barrels of oil per day (45 boe/d) net to Pan Orient in September. Now it is producing 29 boe/d. "Production performance of the L53-AA2 well will be monitored over the remaining period of the 90 day production test. A final decision will be made at the end of the 90 day period whether to proceed, or not, with a Production Area application for the L53-AA2 structure," the release stated.
Pan Orient has been developing its L53-DD oil field reservoir model, incorporating into it the newly drilled well results, for a reservoir simulation study it expects to finish by year-end 2020.
Net sales of oil produced from the L53 Concession amounted to 1,575 boe/d in September. Adjusted funds flow from the Thailand operations in Q3/20 was CA$3.5 million. At quarter's end share of working capital and long-term deposits was CA$3.5 million. Thailand cash flow is expected to fund further exploration and development at L53.
At the corporate level, Pan Orient's Q3/20 adjusted cash flow from all of its operations, including the Thailand joint venture, was CA$2.4 million. During the quarter, Pan Orient repurchased 98,000 shares in Q3/20 at an average price of CA$0.61 apiece. At Sept. 30, 2020, the company had CA$29.9 million in combined working capital and deposits and no debt. Its Q3/20 loss was CA$1.1 million, or CA$0.02 per share.
Looking forward, "the focus for the remainder of 2020 will be on development-related activities in Thailand, growing our cash balance by maximizing funds generated from operations and achieving full recognition of L53-DD field oil reserves in the year-end 2020 independent third party reserves report," President and CEO Jeff Chisholm said in the release.
Read what other experts are saying about:
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. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pan Orient Energy, a company mentioned in this article.