CALGARY (Yosefardi) – Pan Orient Energy Corp. continues to seek a partner in the Citarum PSC located onshore Java, Indonesia.
While some progress had been made in late 2014 towards securing a farmout partner, the recent decline in oil prices has created greater uncertainty regarding the Company’s ability to secure a partner.
All documents supporting the transfer of a 51-per-cent working interest and operatorship in the East Jabung Production Sharing Contract (PSC) to a subsidiary of Talisman Energy were submitted to the Government of Indonesia regulator prior to year end 2014.
It is anticipated that approval of the transfer of working interest and operatorship to Talisman’s subsidiary will be granted in late March to April 2015. Upon receipt of Government of Indonesia approvals, Pan Orient will receive USD $8 million in accordance with the Farmout Agreement.
The Company continues to work towards the drilling of the Akatara/Selong offset well in Batu Gajah PSC, which is anticipated to commence drilling in September 2015. The well will be drilled regardless whether or not the Company farms out a portion of the Company’s interest in the PSC.