As announced on 12 March 2020, Pan Orient plugged and abandoned the third exploration well under Phase 2 drilling program, L53 AA1 and its sidetrack (L53 AA1ST1) in the L53/48 Reserve Area A, onshore Chao Phraya Basin, as dry wells. Spudded on 25 February 2020, the L53 AA1 well was targeting a structural closure located approximately 1.2 km south up-dip of the previously drilled L53 AA2 well. The sidetrack well was targeting a separate and up dip structural closure west of the L53 AA2 exploration well.  Following the well abandonment, the "E-05" land rig will be demobilized and the drilling campaign is expected to resume in the second half of April 2020, utilizing a new drilling rig with a substantially reduced day rate. The operator is planning to start with a water disposal well at the L53 DD well pad, followed by resumption of drilling of the L53-BB1 well. Another exploration well, L53 AC-E, will be targeting the West A1-A4 prospect fault compartments with Kamphaeng Saen area. Two additional appraisal wells will complete the drilling program.    The eastern side of the AA prospect was earlier tested by the L53 DD6ST1 well, encountering 5 m of net oil sand within the targeted CC sand. Located on the west fault block of the producing L53 DD field, the AA and AA North prospects have structural closure areas of 0.69 and 0.27 sq km, respectively. Both wells were drilled from the same AA well pad.   L53-BB1 was originally spudded on 4 February 2020 but it was suspended after three days of drilling in order to reinforce the well pad.  Commenced on 25 January 2020, Phase 2 exploration drilling program consists of three appraisal wells and five exploration wells (including sidetracks), focusing on accessing the upside potential within the L53 DD oil discovery. The drilling campaign was previously planned to be commenced in Q4 2019.  The earlier Phase 1 exploration drilling program in the concession was completed on 27 August 2019, resulting in two discoveries in the L53 DD5ST1 and L53 DD6ST1 wells. The wells were suspended prior to receiving approvals from the Department of Mineral Fuel (DMF) for a 90-day production test.  The remaining oil reserves in L53/48 concession were around 1.24 MMbbl at 31 December 2019, as evaluated by Sproule International Ltd. The concession produced 499 Mbbl of oil from the L53 A, D, G and DD fields in 2018.  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  The L53/48 block lies onshore in the Kamphaeng Saen area of the Chao Phraya Basin, around 50km WNW of Bangkok. The area is covered by at least 580 sq km of 3D seismic data which were acquired since 2007.   Eight minor oil discoveries were encountered from 2009 to 2019. As of late 2019, a total of six fields are producing (L53-A, L53-G, L53-D East, L53-DD, L53-B and L53-AA South) and another two fields are appraising (L53-D and L53-D C-EXT). 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.
Thailand (Chao Phraya B.) L53-G