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High-Impact Drilling Will Test Pan Orient’s Indonesian Field

Thursday, March 16, 2017 12:49
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(Before It's News)

High-impact drilling on Pan Orient Energy’s East Jabung project in Sumatra, Indonesia, is slated to begin by the end of March.

Talisman Energy, a subsidiary of Spanish major Repsol SA, will test Pan Orient Energy Corp.’s (POE:TSX.V) East Jabung field in Sumatra. Pan Orient acquired the property in 2011.

PiercePoints in ValueWalk noted that Pan Orient Energy “used seismic surveys the last few years to uncover a massive reef and clastics drill target—which could be one of the biggest onshore discoveries of the decade. . .independent engineers appraised [the project] as having a best likely size of 149 million barrels equivalent—absolutely huge for an onshore project. “

Talisman “executed a farm-in deal with Pan Orient where it will pay 100% of the costs for an exploration well in order to earn a 51% interest in the project,” commented PiercePoints. “That’s a lot smaller interest than majors usually demand for a carried well. Leaving Pan Orient with a full 49% ownership in the project—equating to 73 million barrels equivalent upside in the best case forecast by reserves engineers—while this junior sits back and watches Repsol pay to test the prospect.”

In his What is Chen Buying? What is Chen Selling? newsletter, Chen Lin noted that “Talisman/Repsol owns the block just to south of it and knows the area and its geology well. The decision of drilling these two wells was made by Repsol one year ago when oil was at 30 dollars.”

Lin also noted that he is surprised that Pan Orient has been “completely forgotten by the Bay Street this close to the major drilling. POE has a very strong balance sheet with CA$0.90+ cash per share and no debt.” He believes if the well is successful, “we can see mad rush to chase the stock,” and noted that Pan Orient does not need to raise any money, “so unlike most juniors, no financing is coming.”

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Pan Orient Energy. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

Additional Disclosures for this Content

( Companies Mentioned: POE:TSX.V, )



Source: https://www.streetwisereports.com/pub/na/17337

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