Deep Well Oil and Gas (fka DWOG)

[wshaw14]

http://panorient.ca/
Canada
Andora is the operator and holds a 50% working interest the Sawn Lake, Alberta SAGD demonstration project. Andora is a 71.8% owned subsidiary of Pan Orient and is consolidated with Pan Orient for reporting purposes.
Capital expenditures for the Sawn Lake demonstration project during the first quarter of 2015 were $1.4 million relating to final construction of the SAGD facility.
The SAGD producing well is still in its ramp-up phase and the steam chamber is approaching the top of the Bluesky formation sandstone reservoir. During March, bitumen production averaged 320 BOPD (160 BOPD net to Pan Orient) with an SOR of 5.2. On April 11, 2015 the electrical submersible pump for the SAGD producing well experienced a problem and the well was shut-in to make the necessary repairs. As a result, bitumen production declined in April to an average of 125 BOPD (63 BOPD net to Pan Orient) with an SOR of 5.9. Production resumed on May 1st and has averaged 353 BOPD (177 BOPD net to Pan Orient) with an SOR of 4.7 for the first 20 days of May.
Production results to date are not necessarily indicative of long-term performance or of ultimate recovery and the Sawn Lake demonstration project has not yet proven that it is commercially viable. All related costs and revenues are being capitalized as exploration and evaluation assets until commercial viability is achieved.

OUTLOOK
Canada - Sawn Lake (Operated by Andora, in which Pan Orient has a 71.8% ownership)

The Company expects the steam chamber to reach the top of the Bluesky formation sandstone reservoir in May or June 2015 and maximum production is anticipated to occur in approximately September 2015, corresponding to the end of the first year of production.
The well is still in its ramp-up phase and Andora is now aiming for consistent bitumen production of 449 barrels of bitumen per day, with an associated SOR of 3.1, which corresponds to the High case estimate used by Sproule Unconventional Limited in the December 31, 2014 contingent resource evaluation for the 16- 30-91-12W5M well pair which was drilled in a 15 to 20 meter thick reservoir with no bottom or top water.