Pan Orient to Abandon Cataka Well

Pan Orient Energy Corp. announced the decision has been made to junk and abandon the Cataka-1 exploration well, located in Indonesia, at a depth of approximately 1,312 feet (400 meters) TVD, 4,921 feet (1,500 meters) above the primary reservoir objective due to severe drilling difficulties. The primary reservoir objective of the well, at approximately 6,234 feet (1,900 meters) depth, had not been penetrated.

The rig is currently mobilizing to the Jatayu-1 location and will commence the drilling of this well in approximately three to four weeks with another approximately 4 weeks to reach the primary reservoir objective.

It is planned that upon the completion of the Jatayu-1 well, drilling will commence on the re-drill of the Cataka prospect (Cataka-1A) incorporating a redesigned well plan incorporating the information gathered from the original well.