Pan Orient Energy Corp.: 2016 Third Quarter Financial & Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 11/17/16 -- Pan Orient Energy Corp. ("Pan Orient" or the "Company") (TSX VENTURE: POE) reports 2016 third quarter consolidated financial and operating results. Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day.
The Company is today filing its unaudited consolidated financial statements as at and for the nine months ended September 30, 2016 and related management''s discussion and analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained online at or the Company''s website, .
Commenting today on Pan Orient''s 2016 third quarter results, President and CEO Jeff Chisholm stated: "We are very pleased with the results of the recently completed Thailand workover program that will ensure internally generated cash flow sufficient to fund 2017 exploration drilling within Thailand Concession L53. At the East Jabung PSC in Indonesia the operator has completed a great deal of technical work that confirms the confidence that I and the Pan Orient Board of Directors have always had in the great potential of this asset. The drilling of the first East Jabung exploration well late in the first quarter of 2017 will be the focal point of one of the most exciting periods that the Company has had since its inception. Meanwhile, we continue to seek new opportunities that have emerged as a result of the current low oil price environment and through which the Company can leverage its strong balance sheet."
HIGHLIGHTS FOR THE FIRST NINE MONTHS OF 2016
Indonesia
Thailand
Sawn Lake, Canada (Pan Orient''s 71.8% subsidiary Andora owns a 50% working interest and is the operator)
Corporate
2016 THIRD QUARTER OPERATING RESULTS
The financial statements reflect that on February 2, 2015 the Company sold a 49.99% equity interest in its subsidiary Pan Orient Energy (Siam) Ltd. ("POS") and retained a 50.01% equity interest. From February 2, 2015 forward the retained 50.01% equity interest is reclassified as a jointly controlled Joint Venture and Pan Orient''s 50.01% equity interest in the working capital, assets, capital expenditures, liabilities and operations of POS are recorded as Investment in Thailand Joint Venture.
OUTLOOK
INDONESIA
Batu Gajah, Onshore Sumatra Indonesia (Pan Orient 77% ownership & Operator)
The current 10 year term of the Batu Gajah PSC expires on January 15, 2017 and the Company awaits the decision on a PSC extension application that was submitted in July 2016. Without the granting of a two year extension to the original ten year term of the PSC, it is not certain the Company will elect to proceed with the drilling of an appraisal well at the Akeh discovery, prior to the expiry of the PSC. A decision by the Government of Indonesia on the status of the application is expected prior to year-end.
East Jabung PSC, Onshore Sumatra Indonesia (Pan Orient 49% ownership & Non Operator)
At an East Jabung PSC joint venture partners'' meeting at the end of October the operator provided an update on the upcoming exploration drilling program at the Anggun prospect and presented the proposed 2017 Work Program and Budget. The operator has indicated that a topographic survey to the proposed first exploration drilling location has been completed and the procurement of all long lead time items was initiated in September. Construction of an approximately five kilometer access road and drilling pad is expected to start in December followed late in the first quarter of 2017 of the commencement of the drilling of an approximately 1,500 meter well called Ayu-1(the original Cantik-1 was renamed to Ayu-1 at the request of the Government of Indonesia). The updated timeline comes after a detailed analysis of the alternative options for the access to the location while maximizing the efficiency of the operations. The original plan considered the use of a 70 kilometer stretch of public road that has seriously degraded over the past three years and would have required substantial upgrading.
THAILAND
Concession L53 Onshore (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)
Oil production at onshore Concession L53 benefits from having a low cost structure, as demonstrated during the third quarter where the Brent reference price for crude oil averaged US$45.88 per barrel and the field netback was $35.16 per barrel and funds flow from operations was $26.74 per barrel.
The five well workover program completed in October has increased production from 192 BOPD in August to 303 BOPD in October. The ANE-A1 exploration well was drilled to a total measured depth of 1,260 meters and is currently rigging down after failing to encounter commercial hydrocarbons despite the presence of excellent quality sandstones within the main target intervals. The well was drilled at a substantially reduced cost relative to recent wells as a result of substantial reductions to drilling rig and services costs. There still remains significant exploration potential within Concession L53 and plans for future exploration drilling will be detailed to shareholders prior to year-end 2016.
CANADA
Sawn Lake (Operated by Andora, in which Pan Orient has a 71.8% ownership)
Pan Orient continues to move forward with steps which allow for future development at Sawn Lake. It is recognized that higher crude oil prices, and specifically higher Western Canada Select reference prices, will be required for future development.
An application for a potential expansion at the demonstration project site to 3,200 BOPD was submitted at the end of April 2016. It is expected that a reactivation of the demonstration project facility and wellpair would be considered as part of a potential commercial expansion to 3,200 BOPD. The expansion application requests the drilling of up to seven additional SAGD wellpairs which are tied into the existing demonstration project facility. The facility would be expanded to generate the additional necessary steam, and it is anticipated that additional steam generation would include the test installation of Andora''s proprietary produced water boiler. Andora believes that its produced water boiler could achieve significant benefits for Sawn Lake SAGD field development. An expansion is dependent on regulatory approval, completion of detailed engineering and a higher commodity price environment to support project economics and financing.
Corporate
The Company maintains a strong financial position allowing us to conduct key exploration activities and ensure financial flexibility. Pan Orient continues to review its worldwide exploration and development asset portfolio with the aim of maximizing corporate value and the best allocation of a substantial net cash balance that is in excess of future capital commitments. These activities range from the potential divestment of existing assets to the ongoing screening of new venture opportunities.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: renewal, extension or termination of oil concessions and production sharing contracts; other regulatory approvals; well drilling programs and drilling plans; estimates of reserves and potentially recoverable resources; information on future production and project start-ups; potential purchases of common shares under the normal course issuer bid; and sufficiency of financial resources. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserves estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Pan Orient Energy Corp.
Jeff Chisholm
President and CEO
(located in Bangkok, Thailand)
Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
(403) 294-1770, Extension 233
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Datum: 17.11.2016 - 07:30 Uhr
Sprache: Deutsch
News-ID 1470735
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