Follow-up Thailand Appraisal Well ‘Tests 659 Barrels Per Day’

Source: Streetwise Reports   12/06/2018

A Mackie Research Capital Corp. note reviewed the new result.

In a Dec. 3, 2018, research note, Bill Newman, a Mackie Research Capital Corp. analyst, reported that Pan Orient Energy Corp.’s (POE:TSX.V) appraisal well L53-DD2 is now producing at about 659 barrels per day (659 bbl/d) of 23.9 degree API oil from the EE sands, “the lowest of the four pay zones.” On a net basis, this equals about 330 bbl/d of oil.

The L53-DD2 well is located within Pan Orient’s L53 concession, and tested at this stabilized rate over a five-day period. It will be left to produce for the remainder of the 90-day test period.

Newman highlighted that the rate of oil L53-DD2 is producing is roughly comparable to what the discovery well L53-DD1 in the DD sands tested at, which was about 780 bbl/day, or 391 bbl/d net.

Therefore, combined production from L53-DD1 and L53-DD2 is about 1,759 bbl/d, or 879 bbl/d net. “We are very encouraged with the initial test results of both wells, which we expect to generate significant cash flow to fully fund a development and exploration program in Thailand in 2019,” Newman noted.

That effort will constitute drilling of three wells: a second appraisal well, L53-DD3, on the L53-DD field in January; an appraisal well on the L53-B field; and an exploration well, L53AC-E, targeting the West A fault compartments in August.

Newman summarized that within the DD field at the L53 concession, five oil-bearing sands have been encountered. Of those, EE and FF, the lowest zones, have been successfully tested. The BB, CC and DD zones, which seem thicker with superior reservoir quality, will be tested in the future.

Mackie has a Buy recommendation and a CA$3.25 per share price target on Pan Orient, based on its “strong financial position, funded Thailand drilling program and high-impact exploration potential in Indonesia,” indicated Newman. This energy company’s stock is currently trading at around CA$1.52 per share.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

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 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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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 interview or the decision to write an article until three business days after the publication of the interview or 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 Corp., a company mentioned in this article.

Disclosures from Mackie Research, Pan Orient Energy Corp., Update, December 3, 2018

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

( Companies Mentioned: POE:TSX.V,
)