The Energy Report
Source: The Energy Report 03/16/2017
View Original Article: https://www.streetwisereports.com/pub/na/high-impact-drilling-will-test-pan-orients-indonesian-field
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.”
Free Reports:
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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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.
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Additional Disclosures for this Content
What Is Chen Buying, What is Chen Selling Newsletter, Feb. 28, 2017 and March 8, 2017
Chen Lin and/or members of my immediate household or family, own shares of the following companies mentioned in this article: Pan Orient Energy.
What is Chen Buying? What is Chen Selling? is published at any moment that editor Chen Lin decides to buy and/or sell securities. Subscribers are aware that Chen will, by definition have purchased or sold securities at the same time or before or after he has written about them to his subscribers. Subscribers are aware that they will be competing with Chen in buying and selling the securities he mentions in the Publication.
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Did This Geologist Just Pinpoint This Decade’s Biggest Natural Gas Discovery? PiercePoints on ValueWalk, March 4, 2017
“I’ve thus been watching this play [Pan Orient Energy] closely (and bought shares in Pan Orient to put my money where my monitoring is).”
Pierce Points’ Disclosure of Securities
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