Value Microcaps Motherboard

[kipp440]

POE.V - New IR Presentation/Update

I see more gushers coming from POE.V, here is the latest presentation. The tax picture is still a bit murky to me, but the production and oil price means this stock will go up considerably. Kipp

http://www.panorient.ca/POE-PP-Updated-FEB-2008b.pdf

Comments from another poster:

"The 2008 drilling plan....

33 well program commenced:
16 well appraisal/development program at Na Sanun East/ Na Sanun
3 well exploration program in L33
8 well exploration program in L44
1 well appraisal program at POE-6
5 well exploration program at L53


Wichian Buri/L33
Note: Please refer to page 11
Twenty wells with the prefix of "JHC" just appeared in this presentation. It appears the company is gaining confidence that the Wichian Buri field extends to the north almost to the dividing line between L44 and L33. But the focus remains elsewhere since they state..."1 well appraisal program at POE-6". I'll be interested in seeing where they spud that one well, if they go for one of these new JHC wells (JHC-1B?) or return to the inventory of unused POE series of wells in the area from last year. Also if you look carefully two wells show up with the prefix "L33", possibly part of "3 well exploration program in L33".

The Edge
(Stratigraphic Zero Edge)
(page 12 to 19)

A Stratigraphic Zero Edge is the place where a formation(rock layer) pinches out.(goes to zero thickness).


Note: Please refer to map on page 15.
It is obvious the company is referring to the volcanic layers when they refer to this ‘stratigraphic zero edge’ the question is are they referring to all four layers or just one in particular. I think contacting the company is the only way to find the definitive answer. It seems to me that the aerial extent is just too great for this edge to be referring to just the 'main volcanic' layer (Zone 2), especially the large 'western lobe' off of the southern compartment. (But I in no way discount this as a possibility) And if the stratigraphic zero edge is just the aerial extent of the 'main volcanic layer' one has to wonder what is the full extent of all four layers.
Regarding this 'western lobe' I believe it is below the Oil/Water contact point therefore not productive. I base this conclusion on the one little blurb we have from the company regarding the O/W contact point from the NR dated 10/18/2007...
"These test results confirm the hydrocarbon potential of a fairway that is a minimum 7.5 kilometers in length (north-south) and whose maximum extent is still unconstrained by a defined oil/water contact to the north and south as well as to the east."(Notice what is missing there....the word 'west'.)
This 'western lobe' might be below the O/W contact point now but in the past I have a feeling that it was not and was a source for much of the oil we now see in the central and southern compartments. Which ties in with something I said in the past...
"I keep thinking that there is just too much oil present to be sourced from directly below the field. My current thinking is the sills extended for some distance away from the field (down - dip or down slope from the field) and generated oil in those outlying areas. When the sills cooled and fractured the oil then used them as pathways (going up-dip) back to our fields."


NSE Southern Compartment

Note: Please refer to map on page 18.
The legend states...Proposed Wells (15) and Producing Wells (5) yet I only count two new wells. And the real oddity is the producing wells are a combination of both the producing color (green) and the proposed color (pink). Maybe the company is just going to drill deviated well off of the currently producing wells.

NSE Central Compartment

Note: Please refer to map on page 19.
The real excitement appears to be here with twelve proposed wells. Looking carefully at the proposed wells we find only seven locations but four of these locations have multiple 'legs'(up to three) coming off of them, bringing the total up to twelve. Gentlemen I believe we are looking at the conformation that the horizontal wells that the company has discussed in the past are about to become a reality.
Two things of note on this map:
1. Three of these proposed wells are outside the NSE Production License area and will probably be development wells thinly disguised as a 'L44 exploration well'. (Extension to permit coming this year?)
2. There is a new leg that appears to be coming off of L44-H (which in fact brings the total to 13 wells) what is unclear is if this well be drilled from the existing L44-H well or if they will construct another pad very close by.

Closing Comments
The company appears to be at The Edge of a drilling campaign that will lead to its production rapidly expanding. The often mentioned 20,000 barrels per day exit rate for the end of 2008(12,000bpd net to POE) now seem like a target completely in sight. I would not be surprised if the company achieves this goal and surpasses it to the upside. Considering the 2007 drilling successes and the technical work that was achieved in that time we should also see a large increase in the reserves when they are reported this spring. This year the focus appears to be expanding production with just enough exploration to keep the old blood pumping, a balanced approach that I like very much."