Pan Orient Energy Corp.: 2019 Third Quarter Financial & Operating Results
CALGARY, Alberta, Nov. 14, 2019 (GLOBE NEWSWIRE) — Pan Orient Energy Corp. (“Pan Orient” or the “Company”) (POE – TSXV) reports 2019 third quarter consolidated financial and operating results. Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day.
The Company is today filing its unaudited consolidated financial statements as at and for the nine months ended September 30, 2019 and related management’s discussion and analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained online at www.sedar.com or the Company’s website, www.panorient.ca.Commenting today on Pan Orient’s 2019 third quarter results, President and CEO Jeff Chisholm stated: “The third quarter of 2019 saw the third new pool / field oil discovery in the L53-DD oil field region onshore Thailand and substantial progress towards the drilling of the Anggun-1X exploration well in Indonesia. We are pleased to announce drilling of the Anggun-1X exploration well in Indonesia commenced November 14th and the well is expected to reach total depth in an estimated 20 to 30 days. The fourth quarter will see preparations for an expanded Thailand exploration and appraisal drilling program that will commence in early January 2020.”
HIGHLIGHTSThailand (net to Pan Orient’s 50.01% equity interest in the Thailand Joint Venture)Successful 2019 drilling program to date with two appraisal wells in the first quarter (L53-DD3 and L53-DD4) brought on production, a new pool discovery in the third quarter with the L53-DD5ST1 exploration well and the L53-B1 appraisal well in the fourth quarter which will be put on production. The L53-DD3 and L53-DD4 wells commenced production on April 25th after approval of the L53-DD Production License, the L53-DD5ST1 well commenced a 90 day production test for the new pool discovery on November 6th and the L53-B1 well will be put on production this week.Net to Pan Orient’s 50.01% equity interest in the Thailand Joint Venture, oil sales from Concession L53 in 2019 increased from 507 BOPD in the first quarter and 1,072 BOPD in the second quarter to 1,418 BOPD in the third quarter as a result of strong production from the four L53-DD wells.Adjusted funds flow from Thailand operations of $15.9 million ($57.99 per barrel) in the first nine months of 2019. Adjusted funds flow from operations of $6.5 million ($49.56 per barrel) in the third quarter compared with $6.6 million ($68.16 per barrel) in the second quarter. The reduction on a per barrel basis is due to 4% lower sales price and current income tax during the third quarter equivalent to $15.32 per barrel. The Thailand operation became taxable in the third quarter of 2019 as cashflow from operations and realized foreign exchange gains exceeded available tax pools. Pan Orient received a dividend of $6.6 million from the Thailand Joint Venture during the third quarter. A strong financial position is maintained in Thailand with working capital and long-term deposits at September 30, 2019, net to Pan Orient’s 50.01% equity interest, of $9.4 million. Indonesia East Jabung Production Sharing Contract (Pan Orient is non-operator with a 49% ownership interest)Drilling rig acceptance procedures for the Anggun-1X exploration well were completed and drilling commenced November 14th. The Operator of the East Jabung PSC has revised the estimated dry hole cost of the Anggun-1X well, including the permanent road to US$20.5 million (Cdn$27.1 million), with Pan Orient’s 49% share of US$10.0 million (Cdn$13.3 million). Total capital costs for the Anggun-1X well from inception to September 30, 2019 have been USD $10.5 million on a gross basis (USD $5.1 million or CAD $7.0 million net to Pan Orient).CorporateTotal corporate adjusted funds flow from operations (including Pan Orient’s 50.01% equity interest in the Thailand Joint Venture) for the first nine months of 2019 of $13.7 million ($0.25 per share) with $6.4 million ($0.12 per share) in the third quarter of 2019 as a result of strong Thailand oil production and netbacks.The net income attributable to common shareholders for the first nine months of 2019 was $1.6 million ($0.03 per share) with $1.1 million ($0.02 per share) in the third quarter of 2019.Under the renewed normal course issuer bid Pan Orient is authorized to purchase, for cancellation, up to 4,504,064 of its common shares (10% of the public float) during the period of May 16, 2019 to May 16, 2020. To September 30, 2019 Pan Orient repurchased 66,000 common shares at an average price of $1.93 per share.Pan Orient maintains a strong financial position for exploration activities at the East Jabung PSC in Indonesia and potential development activities in Canada with working capital and non-current deposits at September 30, 2019 of $32.5 million and no long-term debt. In addition, the Thailand Joint Venture is in a strong financial position for further exploration and development activities with working capital and long-term deposits of $9.4 million and $2.8 million of equipment inventory, net to Pan Orient’s 50.01% equity interest.OUTLOOKINDONESIAEast Jabung PSC, Onshore Sumatra (Pan Orient 49% ownership & Non Operator)
The Anggun-1X exploration well has commenced drilling and the results will have a significant impact on Pan Orient’s future strategy.THAILANDConcession L53 Onshore (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)
The L53-DD5ST1 exploration well commenced a 90 day production test for the new pool discovery on November 6th and the L53-B1 appraisal well is about to be put on production.A five to six well drilling program is planned to commence in early January 2020 with four or five exploration wells and an appraisal well. The program will be focused on the general region of the L53-DD oil discovery, with one exploration well in the vicinity of the L53-D field further south in the Kamphaeng Saen basin. Pan Orient Energy (Siam) Ltd. will be preparing a new December 31, 2019 independent reserves evaluation for Concession L53/48 which will reflect 2019 drilling results and well performance.CANADASawn Lake (Operated by Andora Energy Corporation, in which Pan Orient has a 71.8% ownership)
Andora is finalizing a new contingent resources evaluation of its interests at the Sawn Lake, Alberta steam assisted gravity drainage project. Andora will work with the Sawn Lake partners in determining the timing and extent of investment in future development.CorporatePan Orient continues to maintain a strong cash position for conducting key exploration and development activities and provide financial flexibility. The results of the Anggun-1X well in Indonesia, results of the ongoing Thailand drilling program and the new independent evaluation reports on reserves and resources will be important in defining the go forward opportunities and strategies for Pan Orient.Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as “expect”, “believe”, “estimate”, “should”, “anticipate” and “potential” or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: renewal, extension or termination of oil concessions and production sharing contracts; other regulatory approvals; well drilling programs and drilling and testing plans; estimates of reserves and potentially recoverable resources, information on future production and project start-ups, and negotiation, agreement, closing and financing and other terms of farmout and other transactions; potential purchases of common shares under the normal course issuer bid; sufficiency of financial resources; and review of asset portfolio and defining opportunities and strategies. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserves estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. FOR FURTHER INFORMATION, PLEASE CONTACT:
Pan Orient Energy Corp.
Jeff Chisholm, President and CEO (located in Bangkok, Thailand)
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Bill Ostlund, Vice President Finance and CFO
Telephone: (403) 294-1770, Extension 233