Source: Streetwise Reports 11/28/2017
Bill Newman, an analyst with Mackie Research Capital Corp., shared this energy firm’s Q3/17 news.
In a Nov. 16, 2017, research note, analyst Bill Newman, with Mackie Research Capital Corp., provided an update on Pan Orient Energy Corp.’s (POE:TSX.V) wells in Indonesia and Thailand.
In Indonesia, regarding the East Jabung product sharing contract (PSC), Pan Orient Energy, the 49% working interest owner, and its partner agreed to drill the ANGGUN-1X well, “which holds substantial resource upside,” Newman indicated. That well is “targeting an independent structural closure from that tested at AYU-1X at the Batu Raja formation level” and “the same well-developed, porous Gumai sandstones reservoir encountered in the AYU-1X well.”
As for the ELOK-1X exploration well, Newman explained that it qualified as “the second commitment well, and the government of Indonesia has approved a 14-month extension (to Jan. 20, 2019) of the first exploration phase of the East Jabung PSC.”
In Thailand, at the L53/48 concession, in which Pan Orient Energy owns a 50.01% working interest, Q3/17 production averaged 262 barrels of oil equivalent per day net to it. This was “in line with our forecast of 225 barrels per day,” Newman noted.
Later this month, the energy company plans to spud the L53AC-C1 exploration well and finish a four-well workover project before year-end.
The research report also covered Pan Orient Energy’s financial status. As of Q3/17E, the company had “a strong balance sheet and no big work commitments,” Newman described. Working capital was $40.4 million ($40.4M), including $40M of cash. There was no debt.
Capital outlays in Q3/17 totaled $3.9M. Of that amount, $3.3M was spent on drilling the AYU-1X and ELOK-1X wells. Near term, the company has committed $1.9M for Indonesia’s East Jabung PSC and $0.2M for Canada’s Swan Lake project.
Newman reiterated Mackie’s Buy recommendation and $3.25 target price “on Pan Orient Energy’s strong financial position and high-impact exploration potential in Indonesia,” he said. The company is currently trading at about $1.09 per share.
Read what other experts are saying about:
Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
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. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
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 one week after the publication of the interview or article. 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.
( Companies Mentioned: POE:TSX.V,