Pan Orient Energy’s strong balance sheet puts it in position to begin drilling at East Jabung in Indonesia at the end of this year.
Pan Orient Energy Corp. (POE:TSX.V) released second quarter results last week. President and CEO Jeff Chisholm provided an overview of operations, reporting that in Thailand “the second quarter of 2016 was focused on operating cost reductions and procurement/planning for an imminent four-well workover program and a fourth quarter 2016 exploration drilling program.”
In Indonesia, Chisholm stated, “activity centered on completing the Batu Gajah PSC extension application, which was submitted just after quarter-end, and planning for an Akeh-1 hydrocarbon discovery appraisal well.”
In Canada, Chisholm added, “reservoir modeling incorporating recent demonstration project well performance data was completed for the Sawn Lake Bluesky formation reservoir and this has formed the basis for an updated Sawn Lake contingent resources report that is currently underway and expected to be completed in September.”
“These activities in all three focus areas are intended to continue moving these assets up the value curve with modest capital expenditure in a time of low oil price,” Chisholm concluded.
Mackie Research published a report on Aug. 17 in which it maintained a Buy rating on Pan Orient. Analyst Bill Newman stated, “POE has a strong balance sheet with no debt and $51.1 million of net positive working capital. We maintain our BUY recommendation and $3.25 target price on POE’s strong financial position and high-impact exploration potential in Indonesia.”
Homing in on the East Jabung PSC (production sharing contract) project in Indonesia, in which Pan Orient holds a 49% working interest, Newman noted that “construction of a road and drilling pad is expected to commence in late Q3/16, which should be followed by the drilling of an exploration well in Q4/16 targeting the 250-million barrel Anggun prospect. The first …read more