Pan Orient announces 2011 year end Thailand reserves update
Thursday, Mar 22, 2012Pan Orient Energy Corp. (TSX VENTURE:POE) announced the results of its December 31, 2011 independent reserves evaluation for Thailand on-shore concessions. Please note that all amounts are in Canadian dollars unless otherwise stated, volumes of crude oil are net to Pan Orient and BOPD refers to barrels of oil per day net to Pan Orient.
The evaluation was conducted by Gaffney, Cline & Associates (Consultants) Pte. Ltd. of Singapore ("Gaffney Cline") for the Thailand assets and was prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
Crude oil reserves in Thailand at December 31, 2011 have been assigned to our four on-shore concessions in Thailand, being Concession SW1, Concession L44/43, and Concession L33/43 where Pan Orient is the operator and has a 60% working interest, and Concession L53/48 where Pan Orient is the operator and has a 100% working interest.
2011 reserves were mainly impacted by the reduction in recovery factors for all of the volcanic reservoir fields, with the largest percentage decrease (-79%) in reserves at the L33-2 field due to the negative results of a number of appraisal wells drilled during 2011. It was anticipated that the successful results of a number of horizontal / highly deviated wells recompleted with inflow control device (ICD) technology would mitigate the negative impact on reserves but this was not possible due to limited production performance available going into year-end that would be required to fully quantify the potential benefits.
Production averaged 2,030 BOPD in 2011 and averaged 2,304 and 2,596 BOPD in the months of January and February 2012 respectively. Production from conventional sandstone reservoirs in January represented 51% of the Company's production, and 65% in February.
Production guidance for 2012 was set at the beginning of 2012 to average 2,500 BOPD. The largest potential impact on upcoming production will be the exact timing of the granting of a new production license in the 100% Pan Orient owned and operated Concession L53.
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