CALGARY, ALBERTA–(Marketwired – Sept. 17, 2014) – Pan Orient Energy Corp. (“Pan Orient” or the “Corporation”) (TSX VENTURE:POE) is pleased to provide an update on the Sawn Lake, Canada, steam assisted gravity drainage (“SAGD”) demonstration project on behalf of Andora Energy Corporation (“Andora”), in which Pan Orient has a 71.8% ownership interest.
Andora has a 50% working interest in the Sawn Lake, Alberta SAGD demonstration project, and is the operator. The first step towards determining the commercial viability of the SAGD recovery process at Sawn Lake is for the demonstration project to provide an indication of the productivity of the reservoir and the amount of steam injection required to produce the bitumen, which are key components in assessing the potential for SAGD development at Sawn Lake.
For Phase 1 of the SAGD demonstration project, one SAGD well pair was drilled in the fourth quarter of 2013 to a depth of 650 meters and has a horizontal length of 780 meters. Construction of the facility for steam generation, water handling and oil treating was completed in the second quarter of 2014. Steam injection commenced May 21, 2014 to warm up the reservoir and establish communication between the SAGD steam injection well and the SAGD producing well which are five meters apart.
During the past 10 days the SAGD producing well has been recompleted for production with the installation of an electric submersible pump and a fibre optic data gathering string and the reservoir has been reheated through the resumption of steam injection by the SAGD injector well.
On September 16 bitumen production commenced. It is anticipated that a stable daily bitumen production rate and associated steam oil ratio will be achieved within the next six to eight weeks, at which time Pan Orient will provide an update to shareholders.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations located onshore Thailand, Indonesia and in Western Canada.
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.
Pan Orient Energy Corp.
President and CEO
(located in Bangkok, Thailand)
Vice President Finance and CFO
Telephone: (403) 294-1770