Pan Orient Energy Corp. (POE:TSX.V) announced in a news release that the joint venture started drilling the L53-DD10 well at its Thailand concession, the "first of a firm two well development drilling program." Pan Orient has a 50.01% interest in the joint venture.
The company noted that the target of L53-DD10 is the AA sand because a second well is needed to produce from there efficiently and economically. The single well producing there now is L53-DD7, which, last year, encountered the thickest and structurally highest AA sand of any previous well in the L53-DD field. It is expected that L53-DD10 will require about 14 days of drilling to reach total depth.
After L53-DD10 drilling is completed, the operator will drill another well in the L53-DD field, that one targeting the deeper EE sand. It will place the well to the north of the only EE sand producer, the L53-DD2 well.
Pan Orient also reported that sales of oil produced from the Thailand L53 Concession averaged 3,306 barrels per day (3,306 bbl/d) in December 2020 (1,653 bbl/d net to Pan Orient's 50.01% equity interest). The received price averaged $47.57 per barrel.
Oil sales dropped to 2,932 bbl/d in January 2021 (1,466 bbl/d net to Pan Orient), but the received price increased to $52.79 per barrel.
Over the first 21 days of February, oil sales averaged 2,860 bbl/d (1,430 bbl/d net to Pan Orient).
"A substantial production increase is anticipated upon completion of the current development drilling program," the release noted.
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