Pan Orient to Abandon Cataka-1A Well

Indonesia Citarum PSC - (Pan Orient Operator and 97% Working Interest)
Cataka-1A Exploration Well
Pan Orient Energy reports that a decision has made to abandon the Cataka-1A exploration well before reaching its Paragi Limestone primary objective. The well encountered numerous intervals of severely tectonically fractured shale that were highly unstable, particularly in this directionally drilled deviated well bore. The company believes that to continue drilling would not be prudent given the difficulties encountered to date and the low probability of reaching the final objective.

The data gathered from the Cataka-1A well will be analysed over the coming weeks and the company will initiate farm-out process seeking a partner for the Citarum Production Sharing Contract which possesses an attractive large cost recovery pool, good fiscal terms for natural gas and significant prospectivity within a region of existing infrastructure and a large deficit of natural gas supply relative to demand.