Pan Orient Announces 2012 Year-End Thailand Reserves Update
CALGARY, ALBERTA, Feb 28, 2013 (Marketwire via COMTEX) -- Pan Orient Energy
Corp. (TSX VENTURE:POE) announced the results of its December 31, 2012
independent reserves evaluation for Thailand on-shore Concession L53/48 where
Pan Orient is the operator and has a 100% working interest. Please note that all
amounts are in Canadian dollars unless otherwise stated and BOPD refers to
barrels of oil per day. Company gross reserves reported represent Pan Orient's
working interest share of production and reserves before deduction of royalties.
The evaluation for the Thailand assets as at December 31, 2012 was conducted by
Sproule International Limited of Calgary ("Sproule") and was prepared in
accordance with Canadian Securities Administrators National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities.
Thailand Reserves Summary:
-- Thailand Company gross proved plus probable crude oil reserves of 1.1
million barrels at December 31, 2012, with an associated net present
value (after tax), using forecast prices and costs discounted at 10% per
year of Cdn$42 million, or $0.73 per Pan Orient share based on the
current 56.8 million Pan Orient shares outstanding.
-- Company gross proved plus probable crude oil reserves at December 31,
2012 from conventional sandstone reservoirs were 0.6 million barrels for
the L53A field and 0.5 million barrels for the L53D field.
-- Company gross proved plus probable oil reserves of 1.1 million barrels
at December 31, 2012 reflect the following changes during 2012:
-- the sale June 15, 2012 of the Company's 60% working interests in
Thailand Concessions SW1, L44/43, & L33/43 for proceeds net of
income tax of $158 million, which had an estimated 18.0 million
barrels of proved plus probable oil reserves, primarily from
unconventional reservoirs
-- oil sales in 2012 of 0.5 million barrels of oil
-- discovery of the L53D oil field in Concession L53 with 0.7 million
barrels of oil
-- technical downward revision of 0.1 million barrels of oil for the
L53A oil field in Concession L53
-- Pan Orient's oil sales in 2012 were 0.5 million barrels, an average of
1,430 BOPD, with 1,029 BOPD in the fourth quarter of 2012. Average 2012
oil sales comprised 937 BOPD from Concession L53 and 493 BOPD associated
with the working interests in Concessions SW1, L44/43, & L33/43 sold
June 15, 2012. Oil sales for Concession L53 were 1,358 BOPD in the first
quarter of 2012, 520 in the second quarter of 2012, 842 in the third
quarter of 2012 and 1,029 in the fourth quarter of 2012.
-- For the determination of crude oil reserves at December 31, 2012, no
reserves were assigned to the new pool discovery with the L53-DC1
appraisal well in Concession L53 which started drilling January 7, 2013
and is currently being tested.
Summary of Thailand Crude Oil Reserves as of December 31, 2012, as provided
by Sproule
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Marketable Reserves - Company Gross (thousands of barrels)
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Proved 405
Probable 682
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Total Proved plus Probable 1,087
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Summary of Thailand Crude Oil Proved plus Probable Reserves as of December
31, 2012, by Major Field as provided by Sproule - Company Gross (thousands
of barrels)
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Gross Proved
Concession Major Field Gross Proved Gross Probable plus Probable
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L53/48 L53A Field 164 413 577
L53D Field 241 269 510
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405 682 1,087
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Reconciliation of Changes in Thailand Crude Oil Reserves as of December 31,
2012, as provided by Sproule - Company Gross
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Gross Proved
(thousands of barrels) Gross Proved Gross Probable plus Probable
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December 31, 2011 5,993 13,005 18,998
Extensions - - -
Improved Recovery - - -
Technical Revision 69 (141) (72)
Discoveries 438 269 707
Acquisitions - - -
Dispositions (Note 1) (5,572) (12,451) (18,023)
Economic Factors - - -
Production (523) - (523)
------------------------------------------------
December 31, 2012 405 682 1,087
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Summary of Thailand Net Present Values as of December 31, 2012, as provided
by Sproule (Before Income Tax)
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Present Value - Before Tax (Cdn$
million) Undiscounted 5% 10% 15%
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Proved 25 24 24 23
Probable 50 47 44 41
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Total Proved plus Probable 75 71 68 64
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Summary of Thailand Net Present Values as of December 31, 2012, as provided
by Sproule (After Income Tax )
----------------------------------------------------------------------------
Present Value - After Tax (Cdn$
million) Undiscounted 5% 10% 15%
----------------------------------------------------------------------------
Proved 19 19 18 18
Probable 26 24 23 22
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Total Proved plus Probable 45 43 42 40
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Per Pan Orient share (Note 8) $ 0.79 $ 0.76 $ 0.73 $ 0.71
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Notes:
1) Thailand reserves and values at December 31, 2012 shown represent Pan
Orient's 100% working interest for Concession L53/48.
Thailand reserves and values at December 31, 2011 shown represent Pan
Orient's 60% working interests for Concessions SW1, L44/43, & L33/43
and Pan Orient's 100% working interest for Concession L53/48. Pan
Orient's 60% working interests in Concessions SW1, L44/43, & L33/43
were sold June 15, 2012.
2) The tables shown have assessed reserves at forecast crude oil
reference prices & costs.
3) The US$ reference price for crude oil per barrel (US$ UK Brent per
barrel) is $106.42 for 2013, $101.65 for 2014, $97.56 for 2015,
$105.07 for 2016, $106.65 for 2017, $108.25 for 2018 and prices
increase at 1.5% per year thereafter.
4) Oil revenue for these reserves is based on approximately 92% of the
forecast crude oil Brent reference price for the L53A field and 88%
for the L53D field.
5) Tables shown assessed reserves with a foreign exchange rate of
US$1=CDN$1.001
6) The cost inflation rate starting in 2014 is 1.5% per year.
7) Estimated future undiscounted development costs, in nominal dollars,
at December 31, 2012 were Cdn$4.0 million for proved reserves and
Cdn$8.8 million for proved plus probable reserves.
8) Per share values were calculated based on 56,760,307 Pan Orient shares
currently outstanding.
9) Net present values before income tax are before deduction of the SRB
(Special Remuneratory Benefit tax) in Thailand.
10) Net present values after income tax are after deduction of the SRB
(Special Remuneratory Benefit tax) and income tax in Thailand.
11) Well abandonment and disconnect costs were included in this report. No
allowances for reclamation or salvage values were made.
12) The net present values disclosed may not represent fair market value.
13) The evaluation for the Thailand assets as at December 31, 2011 had
been conducted by Gaffney, Cline & Associates (Consultants) Pte. Ltd.
of Singapore. There were no disputes between Gaffney, Cline and
management of Pan Orient.
14) Totals may not add exactly due to rounding.
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: well drilling programs and drilling plans, estimates
of reserves and potentially recoverable resources, and information on future
production and project start-ups. 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 reserve 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.
FOR FURTHER INFORMATION PLEASE CONTACT: Pan Orient Energy Corp. Jeff Chisholm
President and CEO (403) 294-1770
Pan Orient Energy Corp. Bill Ostlund Vice President Finance and CFO (403)
294-1770
SOURCE: Pan Orient Energy Corp.
