Pan Orient's Thailand Well Producing at 710 BOPD

Pan Orient Energy has issued an exploration and development report for its Thailand operations. 

NSE-D1 appraisal well (60-per-cent working interest and operator)

The NSE-D1 appraisal well, located approximately 455 meters north of the NSE-B drill pad, is currently on production at a rate of approximately 710 bopd with a 0.1 to 0.3% water cut. The well is producing within the limits of the current pump configuration with a fluid level at approximately 205 meters below ground level suggesting the well can be produced at a higher rate. A larger capacity tubing pump will be installed once it has cleared Thai customs later this week.

NSE-A4 appraisal well (60-per-cent working interest and operator)

The NSE-A4 appraisal well had originally reached a total depth of 787 meters TVD after penetrating the top of the target volcanic reservoir at 730 meters TVD. Severe mud losses were experienced while drilling, indicating the most extensively fractured reservoir section encountered in any well to date. While setting the 4.5" liner, an obstruction was encountered in the hole, just out of the casing window, making it impossible to complete the well. As a result, the 7" casing was milled out and set deeper prior to kicking off into the main volcanic target zone. This operation has now been completed. While drilling the main volcanic target severe mud losses were encountered once again, in addition to live oil to surface while reaming below the 7" casing shoe. At the present time the hole is being conditioned to set a 4.5" liner and equip the well for production.

Testing is anticipated to be completed within 10 days of setting the 4.5" liner, at which time test results will be announced. Upon completion of the current operation, the rig will be moved to the NSE-C1 well location which is 1,000 meters east of the NSE-B drill pad and targeting an area of possible reserves as defined in the year end 2007 NI 51-101 compliant reserves report.

NSE-D2 appraisal well (60-per-cent working interest and operator)

The NSE-D2 appraisal well is currently drilling ahead at depth of 810 meters measured depth (726 meters true vertical depth) near casing point, just above the estimated depth of the main volcanic objective that is expected to be encountered structurally much higher than at NSE-D1. The subsurface target is located approximately 330 meters north of the NSE-D1 location. Drilling is anticipated to be completed in the next 6 days.


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