Pan Orient has suspended an exploration well, L53 AA2 in the L53/48 Reserve Area A, onshore Chao Phraya Basin, around late-February 2020, as an oil well. Based on wireline logs interpretation, the well probably encountered approximately 6 m of good quality net oil pay in the targeted AA sand and possible additional of 5 m in the overlying SH1 sand, between gross interval of 940 to 994 m TVD. A 90 days production test will be commenced once an approval is granted from the Department of Mineral Fuel (DMF).  Located at approximately 1.4 km west of the L53-DD drilling pad, the well was targeting a structural closure approximately 970 m northwest and up-dip from the sub-commercial hydrocarbons encountered in the L53-DD6ST1 well, in late 2019. The L53 AA2 well is the second exploration well drilled under the Phase 2 exploration drilling program. Spudded on 12 February 2020, the well has likely completed operation by 26 February 2020 as scheduled, prior to skid drilling of the next exploration well, L53 AA1, from the same surface location.    Pan Orient completed the drilling of L53 DD6ST1 on 30 September 2019. Based on wireline logs interpretation, the well encountered approximately 5 m of net oil sand within the targeted CC sand. The well was kicked off from the original borehole under Phase 1 exploration drilling campaign for the concession. The well is located at the down-dip east limit of the 'AA prospect' which was earlier planned to be tested in the Phase 2 exploration drilling campaign. The original borehole, L53 DD6, was drilled to TD of 1,606 m prior to being plugged and abandoned on 26 September 2019, with oil shows.  The L53/48 concession is fully owned and operated by Pan Orient (Siam) Ltd, which is in turn controlled by Pan Orient Energy Corp (50.01%) and Sea Oil Public Company (49.99%). The exploration Area A and B will expire in January 2021, after which the production areas (A, B, D, G and DD) will be retained.  Background Information  Eight oil discoveries were encountered in the L53/48 block from 2009 to 2019. As of early 2020, a total of five fields are producing (L53-A, L53-G, L53-D East, L53-DD and L53-B), two fields are appraising (L53-D and L53-D C-EXT) while L53-AA South field has been temporarily shut-in while waiting for environmental and production license approvals. The oils were trapped in the Lower to Middle Miocene structural play which was sealed by Middle Miocene Series mudstone.   The original 3,997 sq km L53/48 block was awarded to Pan Orient Energy on 8 January 2007 as the operator and sole interest holder, under the 19th Licensing Round. The concession agreement allows Pan Orient to explore for hydrocarbons over a period of six years with a minimum three years first phase commitment of approximately US$ 2.1 million, which includes 3D seismic acquisition and two exploratory wells.
Pan Orient has suspended an exploration well, L53 AA2 in the L53/48 Reserve Area A, onshore Chao Phraya Basin, around late-February 2020, as an oil well.