The Energy Report - Tue, Oct 24, 2017

Oil & Gas Firm Offers 'High-Impact Exploration Potential'

Analyst Bill Newman with Mackie Research Capital Corp. provided the recent results from of one of the exploration wells this energy company co-owns in Indonesia.

Oil pump

Drill results from the ELOK-1X exploration well, which Pan Orient Energy Corp. (POE:TSX.V) owns in a joint venture, confirmed "the findings of the AYU-1X well," which were the presence of oil and gas within the Gumai sandstone formation, concluded Bill Newman, an analyst with Mackie Research Capital Corp.

The ELOK-1X showed "high gas reading and oil staining" also in the BFR formation, the analyst explained. That well's "subsurface location was ~700m southwest from the AYU-1X well and encountered the BRF formation 26m structurally lower than the AYU-1X well."

Both the ELOK-1X and AYU-1X wells fall under the East Jabung production sharing contract (PSC), in which Pan Orient Energy has a 49% working interest. With the drilling of ELOK-1X, the company "has now met its current drilling commitments for East Jabung PSC which had a November 2017 deadline," noted Newman, referring to phase 1. "The partners will now meet in early November to discuss future drilling plans."

The next phase of the PSC involves "drilling of the high-impact ANGGUN-1X exploration well," which "has potential in both the BRF and the Gumai," Newman indicated. "We find it encouraging that the partners elected to incur the cost to drill the ELOK-1X well to retain the East Jabung license which allows for the drilling of the ANGGUN-1X well."

Newman added that "it's likely that the ANGGUN-1X well will be drilled next year" and that the activity "could commence in late Q2/18 or early Q3/18."

Mackie Research reiterated its Buy recommendation and $3.25 per share target price on Pan Orient Energy based on the company's "strong financial position and high-impact exploration potential in Indonesia," Newman wrote. The oil and gas company's shares are currently trading at around $1.12 per share.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pan Orient Energy Corp. Streetwise Reports does not accept stock in exchange for its services. Click below for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pan Orient Energy Corp., a company mentioned in this article.

InvestorsGuru.com publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime


Bookmark and Share

 Subscribe in a reader

Our Mobile Site