CALGARY (Yosefardi) – Pan Orient Energy Corp. spent capital expenditures (capex) of US$8.7 million in Indonesia during the first nine months of 2015.

Capital expenditures of $0.3 million at the East Jabung PSC were for permits and fees at the Anggun Prospect prior to the farming-out of interests, engineering fees and capitalized G&A.

Capital expenditures $8.4 million at the Batu Gajah PSC were $7.0 million for drilling of the Akeh-1 exploration well and $1.4 million for capitalized G&A.

The Akeh-1 exploration well at Batu Gajah PSC was drilled during the third quarter and resulted in a natural gas and condensate discovery. The cost of the Akeh-1 exploration well to September 30th was $7.0 million and an estimated additional $2.6 million has been incurred in the fourth quarter to complete drilling and testing of the well.

Testing was completed in the third week of October. On October 6, 2015 the Citarum PSC expired.

Technical data obtained in the drilling and testing of the Akeh-1 exploration well is being used to update understanding of the Akeh prospect and prepare regulatory filings.

The next step will be holding discussions with the Government of Indonesia in relation to having the Akeh structure “Released from Exploration Status” as a “conclusive discovery”.

A successful release would allow the commencement of a “Pre-Plan of Development” study to determine the likelihood of the commerciality of the Akeh-1 discovery, which would be followed (if commerciality is deemed likely) by the compilation and submission of a Plan of Development.

At the East Jabung PSC, Pan Orient and the operator have approved the 2016 work program and budget which includes the drilling of the Anggun-1 exploration well. The time lines for drilling of the Anggun-1 exploration well will be firmed up early in the first quarter of 2016, by which time all approvals should be in place and the access route selected.