Pan Orient Energy Corp.

Thailand Operations Update

CALGARY, Alberta, Feb. 14, 2020 (GLOBE NEWSWIRE) -- Pan Orient Energy Corp. (“Pan Orient”) (POE – TSXV) provides an operations update.

THAILAND

Onshore Concession L53 (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)

Pan Orient Energy Corp. (“Pan Orient”) (POE – TSXV) is pleased to announce that the L53-DD6ST2 appraisal well has averaged 967 barrels of oil per day (“BOPD”) over the past 24 hours from 7.4 meters of perforations within the BB/CC sand with a water cut of 4%.  The well has been on production since February 11, 2020 and the water cut of 4% is dropping as the well continues to clean up. The well is being produced by downhole electrical submersible pump (“ESP”) with the fluid at approximately 464 meters (pump depth at 1,282.1 meters measured depth).  Test results are not necessarily indicative of long-term performance or ultimate recovery.

Commenting today on Pan Orient’s operations update, President and CEO Jeff Chisholm stated: “Concession L53 oil sales continue strong into the first quarter of 2020 backed up by the results of the recently drilled L53-DD6ST2 appraisal well that is currently on production at 967 BOPD from the BB/CC sand.  Current production for the concession is 2,778, not including an additional 38 BOPD from L53-A coming on in the next five days after its workover is completed and 110 BOPD from L53-DD5ST1 in the new L53AA South field that has been shut-in since the 90 day production test period ended on January 17, 2020. L53-DD5ST1 is not expected to be brought back on until after environmental and production license approval is received in approximately June 2020.  In addition to the firm four well exploration program that is currently underway, there will be four development/appraisal wells in the L53DD/L53AA South fields that will underpin production through 2020.  We are now firmly backed by a new oil sales agreement effective February 1, 2020 that will better reflect the value of Concession L53’s sweet, low sulphur oil that is experiencing increased demand since the implementation of the IMO2020 low sulphur regulations that came into effect on January 1, 2020. Under the Normal Course Issuer Bid (“NCIB) that received TSX Venture Exchange approval for the period May 16, 2019 to May 16, 2020 the Company has purchased 654,400 shares at an average price of $1.22 per POE share. There have been no purchases since December 20, 2019 as under the NCIB regulations the Company is restricted from purchasing shares while in blackout pending news such as reserve reports, financials and drilling results. The company has been in blackout since December 20, 2019 and will continue to be in blackout until sometime in mid-March, 2020, shortly after the planned brief pause in Thailand exploration drilling and the release of the company’s year-end 2019 financials. Lastly, please take the opportunity to refer to the updated POE corporate presentation that can be found on the company’s website at: www.panorient.ca."