Pan Orient's Reserves Value Up for Sawn Lake Heavy Oil Project
Pan Orient Energy, on behalf of its 53.3% owned subsidiary Andora Energy Corporation, has released its December 31, 2008 National Instrument 51-101 compliant reserves appraisal for its heavy oil project at Sawn Lake Alberta, Canada, as evaluated by DeGolyer and MacNaughton Canada Limited.
- Net present value (discounted 10% before tax - forecast prices) of $1.463 billion ($17.11 per Pan Orient share for its net 53.3% interest in Andora) attributed to Sawn Lake probable reserves, an increase of 98% from $737 million in prior year.
- Net present value (discounted 10% before tax - forecast prices) of $2.45 billion ($28.66 per Pan Orient share for its net 53.3% interest in Andora) attributed to Andora's Sawn Lake probable + possible reserves.
- Probable Sawn Lake recoverable reserves of 131.8 million barrels of oil, a decrease of 0.5% from 132.6 million barrels in prior year.
- Andora's Sawn Lake gross probable + possible recoverable reserves of 235 million barrels of oil, a decrease of 14% from 274 million barrels in prior year. This downward revision reflects the removal of Andora's 10% non-operated working interest of Sawn Lake West from the reserve report as based on this past winters drilling results.
- Andora is awaiting approval of its SAG-D demonstration project application which was submitted to the Alberta Government in April 2008.
Pan Orient, through Andora, currently holds a 100% operated working interest in 16 sections of Sawn Lake oil sand leases ("South Block") plus an additional 50% operated working interest in oil sand leases and related assets covering 12 sections of land ("Central Block"). Andora also owns a 10% working interest in 51 sections (10 sections in the Central Block and 41 sections in a Northern Block) with the Central and Northern Blocks located immediately north of, and adjacent to the southern 100% owned lands. Additionally, as outlined in a December 4, 2007, press release, Andora owns a gross overriding royalty ("GORR") of 3% of a 40% working interest on the 12 sections in the Central Block that it already has a 50% interest in, plus an additional 3% GORR of a 80% working interest in a remaining 24.5 sections that it has a 10% working interest of.
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