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ArticleThere are numerous pipelines in the area and this is from another BB...... RE:Pan Orient Finally Hits in Indonesia: Now We're Cooking with Cherca, Thanks for the Hydra Capital link........ for anyone who did not open it, here is it pasted. Also pasted an earlier article from the same guy that also addresses the well from the previous news release. I might also mention that another writer also talked to the company yesterday and confirmed this authors comments that there is strong potential they may have been just below commercial oil in zone DST-3 thus why there were only 5 barrels and they are trying to confirm by further testing. Pan Orient Finally Hits in Indonesia: Now We're Cooking with Gas 10/20/2015 {C} 0 Comments By: Malcolm Shaw (Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post.) Pan Orient Makes Gas Condensate Discovery at Akeh-1 Exploration Well This morning POE announced that the Akeh-1 exploration well in Indonesia discovered gas and condensate in two zones. I'm short on time this morning, but I've included the text of (and link to) the press release below. To briefly comment, the well test confirms a gas-condensate discovery in one zone and suggests the presence of a discovery in a second zone in another. The zone referred to as "DST-3" is mapped as being 20 metres structurally higher at an up dip location within the Batu Gaja concession, which suggests that it is quite probable that POE has actually made a two zone discovery at Akeh-1, with the well having been drilled close to, or at, the hydrocarbon-water contact in the "DST-3" zone. There are multiple options for monetization of a gas-condensate discovery in the area, including some nearby operators that actually burn oil for power due to a shortage of natural gas in the vicinity. Jakarta is also hungry for gas, as is Singapore, and evacuation options are available to both markets. I suspect that POE will look to monetize the Akeh discovery to a larger player in the area before it is ever developed. With the stock trading at C$1.25 as I write this, POE continues to trade at ~20% discount to cash even in light of this discovery. I can only assume that the lack of market reaction to the news today is due to lack of interest and perhaps the assumption that gas isn't as valuable as oil in the region. Anyone who knows the area will know that's not the case, but time will bear that out. In the meantime, POE shareholders just got another backstop in what I believe is clearly a discounted valuation. I would think that today's news should have the stock trading in the $1.75-$2.00 range, at which price it would still be cheap. Go figure. Pan Orient to Test Akeh-1 Exploration Well in Sumatra 09/25/2015 2 Comments By: Malcolm Shaw (Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long POE.V) Did Pan Orient Finally Catch Some Good Luck with the Drill Bit? After market close on Thursday Pan Orient announced that, on the basis of open-hole wireline logs and formation pressure samples, a decision has been made to test three intervals interpreted as being potentially hydrocarbon-bearing in the targeted Lower Talang Akar Formation. The press release is pretty sparse on detail, but I had a chance to catch up with Jeff Chisholm this morning from Bangkok. First off, testing isn't free, so you don't test a well if you think it's dry. Second, the pressure data that they gathered over the interval of interest showed a hydrocarbon gradient, which in layman's terms, means that whatever the fluid is in the target formation, it's less dense than water. Unfortunately, their MDT sampling tool failed (that's a wireline tool that collects reservoir fluid samples in a chamber while downhole), so they didn't get direct samples of the reservoir fluid, which is why the wording of the release remains cautious. After all, until a sample has been recovered and hydrocarbon has been brought to surface, we're still dealing with interpretive data. On a final note, well logs show multiple porous sands (~25% porosity) and oil and gas shows were noted during the drilling of the interval. It's not a slam dunk, but the ball is in the air and appears to be headed for the basket. Two to three weeks for test results. In terms of potential value, it's still early days, but successful testing and production at Akeh would put POE in a position to monetize their US$50 million cost-recovery pool at the rate of 80-90% of revenue generated. On success, my best guess for present value net to POE is in the $1-1.25/share range for Akeh, which would put my core NAV estimate at around C$2.50-2.75/sh. At that price I would still pay nothing for Sawn Lake (that's a 154 mmbbl net 2C contingent SAGD resource where pilot well pair production is exceeding mid-case engineering estimates), nothing for the remainder of the prospects/fields on the Batu Gaja acreage (see this link for more information on other Batu Gaja targets, including Takar, which looks to be a prior gas discovery), and nothing for the possible company-maker East Jabung Anggun prospect (expected drilling Q2 2016). As it stands, POE still trades well under its cash value of about C$1.50-1.60/share. That's good enough for me. Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.poe/pan-orient-energy-corp#s9f5iOoku06c0qHF.99 |
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