Deep Well Oil and Gas (fka DWOG)

[wshaw14]

• Sawn Lake Alberta Heavy Oil (Operated by Andora, in which Pan Orient has a 71.8% ownership)
o Andora is completing detailed engineering for its proprietary Thermal System and Process for Producing Steam from Oilfield Produced Water ("Produced Water Boiler").
o An application for a potential expansion at the demonstration project site to 3,200 BOPD was submitted in April 2016 and Andora is awaiting approval of the application. It is expected that a reactivation of the demonstration project facility and wellpair would be part of a potential commercial expansion to 3,200 BOPD. The expansion application requests the drilling of up to seven additional SAGD wellpairs which are tied into the existing demonstration project facility. The facility would be expanded to generate the additional necessary steam, and it is anticipated that additional steam generation would include the test installation of Andora's proprietary produced water boiler. Andora believes that its produced water boiler could achieve significant benefits for Sawn Lake SAGD field development. An expansion is dependent on regulatory approval, completion of detailed engineering and a higher commodity price environment to support project economics and financing.
o Capital expenditures for the Sawn Lake project during the first quarter of 2017 were $0.2 million related to drilling of a core well associated with lease retention, engineering design work associated with the Produced Water Boiler, and capitalized expenses during the quarter.
http://panorient.ca/