Pan Orient Makes Discovery at NSE-A1 in Thailand

Pan Orient Energy Corp. has reported that its NSE-A1 well, of which the Company holds a 60% WI and Operatorship, is currently free flowing from a newly discovered, approximately 17 meter thick upper volcanic/volcanic clastic reservoir at a restricted rate of approximately 1,245 bopd. Current water cut is approximately 0.5% and flowing tubing and casing head pressures are high at 210 psig at 26/64" choke and 340 psig at 26/64" choke, respectively.

NSE-A1, located off the crest of the NSE Central fault compartment, was drilled vertically and initially programmed to core the highest section of the approximately 180 meter thick main volcanic reservoir. While drilling through a previously untested upper zone at approximately 720 meters true vertical depth (TVD), and above the main volcanic objective, very high mud gas readings and strong oil shows resulted in the decision to cut a 20 meter core sample. Initial well site analysis of this upper volcanic core indicated mixed fractured volcanics and volcanic clastics with good oil shows throughout and good visible matrix porosity in the volcanic clastic section. The decision was made to TD the well and test this new upper volcanic, and not drill through to the main volcanic interval.

NSE-A1 represents the first oil production within the Central and Southern fault compartment from a zone other than the massive main volcanic. The full areal extent of this upper zone will be evaluated as part of the current round of NSE appraisal drilling; however, initial interpretation suggests this zone may be equivalent to the oil producing zone in the L44G-D1 well located in the Northern fault compartment approximately 3.5 kilometers to the north, the upper volcanic zone at Bo Rang-1 that tested gas (at the crest of the structure) approximately 7 kilometers to the northeast and a very thick (approximately 100 meter thick - gross) section at L44H-D1 that exhibited very good oil shows and very high mud gas readings while drilling through an interbedded clastic and volcanic section that was never logged due to borehole obstructions through that section.