CALGARY (Indonesia Today) – Pan Orient Energy Corp, owner of 97% participating interest in the Batu Gajah PSC, expects finalization of agreements with Indonesian forestry company in two weeks to commence drilling activities of the block.
“Land access agreements are being finalized with the surface rights holder. Negotiations are currently focused on the final draft access agreements. It is expected that these agreements will be finalized within the next two weeks, allowing for the drilling of two wells and the acquisition of 3D seismic to commence prior to year-end 2012,” Pan Orient said in its second quarter 2012 financial and operating results.
The drilling of two exploration wells is expected for late 2012 or early 2013 at a combined cost of $10 million, and a 400 square kilometer 3D seismic program is planned in late 2012 for $15.5 million. Total go forward capital is estimated at $25.5 million.