CALGARY (Yosefardi) – Pan Orient Energy Corp. plans to drill an exploration well at the Batu Gajah PSC in the second half of 2015 which would offset an existing oil discovery made by another operator in the adjacent Lemang PSC.
Forestry approval for three surface locations was received in May 2015, and road and wellpad construction is expected to commence in June 2015.
On May 15, 2015 the company received Government of Indonesia for approval for the transfer of a 51% participating interest and operatorship in the East Jabung PSC to a subsidiary of Talisman Energy Inc. The first well is currently planned to be drilled in the East Jabung PSC in approximately early to mid-2016.
Pan Orient spent capital expenditures in Indonesia of $0.4 million for permits, fees and capitalized general and administrative expenses at the East Jabung and Batu Gajah PSC’s during the first quarter of 2015.
Working capital and non-current deposits of $85.0 million at March 31, 2015 and an additional $9.4 million are set as initial consideration of the East Jabung farmout is expected in mid-June of 2015. Pan Orient has no long-term debt.
Pan Orient had outstanding capital commitments as at March 31, 2015 of $10 million in Indonesia associated with the East Jabung PSC.
In May 2015, the East Jabung farmout received Government of Indonesia approval and the commitment associated with the retained 49% participating interest, will now be reduced to $4.9 million and under terms of the East Jabung farmout, the farminee will fund the first USD$5 million of Pan Orient’s share of the exploration program.