Pan Orient Energy Corp. has issued an operational update on its Thailand prospects.
NSE-A3 Horizontal Appraisal Well (60% WI & Operator)
The NSE-A3 deviated appraisal well has been drilled to a total measured of 897 meters, penetrating the top of the main volcanic target at a depth of 755 meters TVD at a location approximately 420 meters due north of the NSE-A1 surface location. Drilling fluid losses of approximately 3,833 bbls were observed while drilling 60 meters of horizontal section within the upper 6 meters of the approximately 180 meter thick volcanic. A formation micro imaging (FMI) log, indicates intense fracturing of the target volcanic zone. The newly discovered productive section at NSE-A1 was also encountered, and drilled though, in NSE-A3 exhibiting high mud gas readings and good oil shows.
Testing of the main volcanic reservoir zone is anticipated to commence in 7 days with results to be announced shortly thereafter.
Aztec rig #14 is currently skidding over to the NSE-A4 well cellar where another horizontal well will be drilled targeting the main volcanic reservoir at a subsurface location approximately 400 meters northeast of the NSE-A drill pad and near the crest of the NSE Central fault compartment.
L44-C Vertical Appraisal Well (60% WI & Operator)
The L44-C vertical appraisal well is currently drilling ahead, utilizing the second Aztec drilling rig Pan Orient has under long term contract, at a depth of 370 meters towards multi-zone objectives within the F and G sandstones and deeper "WB-1" volcanic at a location 1.15 kilometers north of the POE-6 oil discovery and within the POE-6 fault compartment. The deeper volcanic objective is interpreted to be the same as that encountered at WB-1 "Deep" but situated in a position approximately 250 meters structurally higher.
L44-C is part of a multi-well appraisal program that is intended to define the potential of sandstone and volcanic reservoir targets in the up dip portion of the POE-6 and Wichian Buri fault compartments for future vertical and horizontal infill drilling.
L44-C drilling is anticipated to be completed within 14 days.
L33-3 Exploration Well (60% WI & Operator)
The L33-3 exploration well, located on concession L33 on the basis of one 2D seismic line within the untested Khon Khwang graben, located 33 kilometers north of the nearest proven production at Wichian Buri was drilled to a depth of 1,084 meters TVD and abandoned after failing to produce hydrocarbons at commercial rates.
There still remain two additional prospects unrelated to L33-3 within the southernmost portion of the L33 concession. Drilling pads have been completed and drilling is planned to take place later in 2008 at these two locations.
NS9-H1 Horizontal Appraisal Well (60% WI & Operator)
NS9-H1, located within the Na Sanun oil field (due west and a distinctly separate field from NSE) has been abandoned after failing to encounter the main reservoir objective. A structurally higher volcanic zone encountered to the north of the main volcanic zero edge, though exhibiting oil shows, failed to produce hydrocarbons at commercial rates.
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