CALGARY, ALBERTA--(Marketwire - March 26, 2013) -
Pan Orient Energy Corp. (TSX VENTURE:POE), on behalf of its 71.8% owned subsidiary Andora Energy Corporation ("Andora"), is pleased to release the December 31, 2012 National Instrument 51-101 compliant resource evaluation for Andora's oil sands project at Sawn Lake Alberta, Canada, as evaluated by Sproule Unconventional Limited ("Sproule"). The evaluation included all of Andora's Oil Sands Leases in Sawn Lake based on exploitation using Steam Assisted Gravity Drainage (SAGD).
Sawn Lake, Alberta Project 2012 Year-End Evaluation Summary and Highlights:
Andora Sawn Lake, Alberta Interests at December 31, 2012 |
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Gross Sections | Working Interest | Additional Interest |
|
South Block (Andora operated) | 16 | 100% | |
Central Block (Andora operated) | 12 | 50% | 3% GORR on non owned 40% working interest |
North Block (Andora operated) | 9 | 100% | |
North Block | 51 | 10% | 3% GORR on an 80% working interest for a portion of the lands |
88 |
Summary of Canada Contingent Bitumen Resources as of December 31, 2012, as provided by Sproule | ||
Marketable Resources - Company Gross (million barrels) | Andora |
Pan Orient 71.8% |
Contingent - Low Estimate "1C" | 194.9 | 140.0 |
Contingent - Best Estimate "2C" | 214.4 | 154.0 |
Contingent - High Estimate "3C" | 251.0 | 180.3 |
Sawn Lake Oil Sands Project | ||||
Summary of Net Present Values Before Tax as of December 31, 2012 | ||||
Contingent Resources as provided by Sproule | ||||
Andora 100% (Cdn$ million) | ||||
0% | 5% | 10% | 15% | |
Contingent - Low Estimate "1C" | 3,013 | 1,136 | 429 | 121 |
Contingent - Best Estimate "2C" | 4,352 | 1,423 | 489 | 130 |
Contingent - High Estimate "3C" | 6,236 | 1,955 | 662 | 189 |
1 | Resources assessed at forecast crude oil reference prices and costs. | |||
2 | The reference prices for crude oil per barrel (Western Canada Select WCS 20.5 API adjusted for quality and transportation in Canadian dollars) are $69.33 for 2013, $74.57 for 2014, $73.21 for 2015, $80.17 for 2016, $81.37 for 2017, and increase at 1.5% per year thereafter. | |||
3 | Oil revenue for these resources is equal to ~72% of the forecast crude oil reference price. | |||
4 | The reference prices for natural gas (AECO-C Spot price per MMBTU in Canadian dollars) are $3.31 for 2013, $3.72 for 2014, $3.91 for 2015, $4.70 for 2016, $5.32 for 2017 and increase at approximately 1.5% per year thereafter. | |||
5 | Future development costs for Contingent Resources which have been deducted in calculating the before tax NPV: | |||
Γû¬ Low Estimate - CDN$2,312 million with the drilling of 390 gross well pairs and building facilities | ||||
Γû¬ Best Estimate - CDN$2,328 million with the drilling of 390 gross well pairs and building facilities | ||||
Γû¬ High Estimate - CDN$2,382 million with the drilling of 390 gross well pairs and building facilities | ||||
6 | The engineered values disclosed may not represent fair market value. | |||
7 | There is no certainty that it will be commercially viable to produce any portion of the resources. |
Sawn Lake Oil Sands Project | ||||
Summary of Net Present Values Before Tax as of December 31, 2012 | ||||
Contingent Resources as provided by Sproule | ||||
Pan Orient 71.8% Interest in Andora (Cdn$ million) | ||||
0% | 5% | 10% | 15% | |
Contingent - Low Estimate "1C" | 2,165 | 816 | 308 | 87 |
Contingent - Best Estimate "2C" | 3,126 | 1,022 | 351 | 93 |
Contingent - High Estimate "3C" | 4,480 | 1,405 | 476 | 136 |
1 | Resources assessed at forecast crude oil reference prices and costs. | |||
2 | The reference prices for crude oil per barrel (Western Canada Select WCS 20.5 API adjusted for quality and transportation in Canadian dollars) are $69.33 for 2013, $74.57 for 2014, $73.21 for 2015, $80.17 for 2016, $81.37 for 2017, and increase at 1.5% per year thereafter. | |||
3 | Oil revenue for these resources is equal to ~72% of the forecast crude oil reference price. | |||
4 | The reference prices for natural gas (AECO-C Spot price per MMBTU in Canadian dollars) are $3.31 for 2013, $3.72 for 2014, $3.91 for 2015, $4.70 for 2016, $5.32 for 2017 and increase at approximately 1.5% per year thereafter. | |||
5 | Future development costs for Contingent Resources which have been deducted in calculating the before tax NPV: | |||
Γû¬ Low Estimate - CDN$1,661 million with the drilling of 390 gross well pairs and building facilities | ||||
Γû¬ Best Estimate - CDN$1,673 million with the drilling of 390 gross well pairs and building facilities | ||||
Γû¬ High Estimate -- CDN$1,711 million with the drilling of 390 gross well pairs and building facilities | ||||
6 | Results represent Pan Orient's 71.8% interest in Andora. | |||
7 | The engineered values disclosed may not represent fair market value. | |||
8 | There is no certainty that it will be commercially viable to produce any portion of the resources. |
Pan Orient's will be announcing 2012 year-end results and providing an update on Thailand operations on Thursday March 28th.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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