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PAN ORIENT ANNOUNCES 2021 YEAR-END THAILAND RESERVES UPDATE

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CALGARY, AB, Jan. 31, 2022 /CNW/ - Pan Orient Energy Corp. ("Pan Orient" or the "Company") (TSXV: POE), on behalf of Pan Orient Energy (Siam) Ltd. ("POS"), announced the results of its December 31, 2021 independent reserves evaluation for Thailand on-shore Concession L53/48 where POS is the operator and has a 100% working interest. Pan Orient has a 50.01% equity interest in POS, which is classified as a Joint Venture under International Financial Reporting Standards and accounted for using the equity method. Pan Orient's 50.01% equity interest in the assets, liabilities, working capital, operations and capital expenditures of POS are recorded in Investment in the Thailand Joint Venture and Pan Orient does not have any direct interest in, or control over, the crude oil reserves or operations of on-shore Concession L53/48.

Pan Orient Energy Corp. Logo (CNW Group/Pan Orient Energy Corp.)
Pan Orient Energy Corp. Logo (CNW Group/Pan Orient Energy Corp.)

The evaluation for the Thailand assets as at December 31, 2021 was conducted by Sproule International Limited of Calgary ("Sproule") and was prepared in accordance with Canadian Securities Administrators National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day. Reserves volumes reported below are "Company Gross Reserves", a classification of reserves used in the evaluation which represents production and reserves before deduction of royalties.

Summary of Thailand Reserves at December 31, 2021 for Concession L53/48

  • Thailand crude oil reserves and values at December 31, 2021 of POS (representing the 100% working interest of POS in Concession L53/48):

  • Net to Pan Orient's 50.01% equity interest in POS:

Summary of Thailand Crude Oil Reserves as of December 31, 2021, as provided by Sproule

Net to Pan Orient's 50.01% Interest in Pan Orient Energy (Siam) Ltd

Marketable Reserves – Company Gross (thousands of
barrels)

Light and
Medium Oil

Heavy Oil

Total

Proved

1,057

483

1,540

Probable

540

233

773

Total Proved plus Probable

1,597

716

2,313

Possible

428

245

673

Total Proved, Probable & Possible

2,025

961

2,986

Summary of Thailand Net Present Values as of December 31, 2021, as provided by Sproule (After Income Tax)

Net to Pan Orient's 50.01% Interest in Pan Orient Energy (Siam) Ltd

Present Value - After Tax (Cdn$ million)

Undiscounted

5%

10%

15%

Proved

48

43

39

36

Probable

25

19

15

12

Total Proved plus Probable

73

62

54

48

Possible

23

16

12

9

Total Proved, Probable & Possible

96

78

66

57

Per Pan Orient share - Proved & Probable Note

$ 1.46

$ 1.24

$ 1.09

$ 0.97

Per Pan Orient share - Proved & Probable & Possible Note

$ 1.93

$ 1.56

$ 1.32

$ 1.15


Note: Per share values were calculated based on 49,793,907 Pan Orient shares outstanding at December 31, 2021


Summary of Thailand Crude Oil Reserves as of December 31, 2021, as provided by Sproule

Pan Orient Energy (Siam) Ltd. (with a 100% working interest in Concession L53/48)

Marketable Reserves – Company Gross (thousands of
barrels)

Light and
Medium Oil

Heavy Oil

Total

Proved

2,113

966

3,079

Probable

1,080

466

1,546

Total Proved plus Probable

3,193

1,432

4,625

Possible

856

490

1,346

Total Proved, Probable & Possible

4,049

1,922

5,971

Summary of Thailand Crude Oil Reserves as of December 31, 2021, by Major Field

as provided by Sproule – Company Gross (thousands of barrels)


Pan Orient Energy (Siam) Ltd. (with a 100% working interest in Concession L53/48)


Concession L53/48 (by Major Field)

Proved

Probable

Proved plus
Probable

Possible

Proved,
Probable &
Possible

L53A Field

169

107

276

121

397

L53B Field

156

71

227

90

318

L53D Field

192

143

336

176

511

L53G Field

235

80

315

78

392

L53DD Field

2,290

1,055

3,345

782

4,127

L53AA South Field

-

77

77

89

165

L53AA Field

37

12

49

12

61


3,079

1,546

4,625

1,346

5,971


Reconciliation of Changes in Thailand Crude Oil Proved plus Probable Reserves as of December 31, 2021,

as provided by Sproule – Company Gross (Light and Medium Oil and Heavy Oil)

Pan Orient Energy (Siam) Ltd. (with a 100% working interest in Concession L53/48)

(thousands of barrels)


Proved

Probable

Proved plus
Probable

December 31, 2020


2,836

1,917

4,753

Discoveries

-

-

-

Extensions


-

10

10

Infill Drilling


-

-

-

Improved Recovery


-

-

-

Acquisitions




-

Dispositions




-

Economic Factors


13

46

59

Technical Revision


1,248

(427)

821

Production



(1,018)

-

(1,018)

December 31, 2021


3,079

1,546

4,625








Summary of Thailand Net Present Values as of December 31, 2021, as provided by Sproule (After Income Tax)
Pan Orient Energy (Siam) Ltd. (with a 100% working interest in Concession L53/48)

Present Value - After Tax (Cdn$ million)

Undiscounted

5%

10%

15%

Proved

95

86

78

72

Probable

51

38

30

25

Total Proved plus Probable

146

124

108

97

Possible

46

32

23

18

Total Proved, Probable & Possible

192

155

131

115

Thailand Concession L53/48 Reserves Evaluation as of December 31, 2021, as provided by Sproule

Pan Orient Energy (Siam) Ltd. (with a 100% working interest in Concession L53/48)

Notes:







1)

Pan Orient Energy (Siam) Ltd. is the operator and 100% working interest owner of Concession L53/48. Pan Orient holds a 50.01% equity interest in Pan Orient Energy (Siam) Ltd.

Thailand reserves and values at December 31, 2021 shown as "100% working interest of Pan Orient Energy (Siam) Ltd." represent a 100% working interest in Concession L53/48.


2)

Reserves volumes reported above are "Company Gross Reserves", a classification of reserves used in the evaluation which represents production and reserves before deduction of royalties.


3)

The tables shown have assessed reserves at forecast crude oil reference prices & costs.


4)

The US$ reference price for crude oil per barrel (US$ UK Brent per barrel) is $75.00 for 2022, $72.00 for 2023, $70.00 for 2024, $71.40 for 2025, $72.83 for 2026, and prices increase at 2.0% per year thereafter.


5)

Oil revenue for these reserves is based on 94% of the forecast crude oil Brent reference price.


6)

Tables show assessed reserves with a foreign exchange rate of CDN$1=US$0.80.


7)

The capital cost and operating expense inflation rate is 0% per year in 2022 and 2.0% per year starting in 2023.


8)

Estimated future undiscounted development costs, in dollars, at December 31, 2021 were Cdn$8.0 million for proved reserves, Cdn$10.2 million for proved plus probable reserves and Cdn$10.2 million for proved plus probable plus possible reserves.


9)

Net present values after income tax are after deduction of the SRB (Special Remuneratory Benefit tax) and income tax in Thailand.

Based on the forecast oil rates and prices, SRB is forecast to be paid in 2022 with SRB tax rate of Cdn$1.3 million for proved plus probable reserves and Cdn$2.6 million for proved plus probable plus possible reserves.


10)

Well abandonment and reclamation costs of Cdn$5.3 million for the proved plus probable case were included in this report and include abandonment and reclamation costs for all existing and future wells. Well abandonment and reclamation costs of Cdn$5.8 million were included for the proved plus probable plus possible case. No allowances for salvage values were made.


11)

The net present values disclosed may not represent fair market value.


12)

Totals may not add exactly due to rounding.











Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand and in Western Canada.

This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: estimates of reserves and the net present value of those reserves, anticipated future production performance, estimates of future crude oil reference prices and the percentage of those prices received by Pan Orient, and estimates of development costs, foreign exchange rates, inflation rates, taxes and well abandonment and disconnect costs. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserves estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.

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.

SOURCE Pan Orient Energy Corp.

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