ST. HELIER, Jersey, June 5 /PRNewswire-FirstCall/ -- Pan-Ocean Energy Corporation Limited ("PanOcean" or the "Company") announces record production levels of 12,500 bopd and confirms that its facilities and export pipeline are progressing on schedule.
Over the past five months, PanOcean has increased its production from 9,600 bopd at year-end to average 11,500 bopd in May and average in excess of 12,500 bopd for the past two weeks. This level is a record for the Company, being a 30% increase in production over year-end. These increased rates are a result of a number of factors. First, four new development wells have been drilled and completed in the Tsiengui Field since the beginning of the year. Secondly, Total installed two replacement export pumps at Avocette allowing less down time and greater volumes through the terminal. Together, this more than doubled export rates from the Tsiengui/Obangue Fields to over 6,380 bopd net through the Company's six-inch export pipeline to Avocette. PanOcean's onshore production rates now exceed those from offshore.
Since the Company reporting on its drilling programme in Q1, the Tsiengui development well TST-8H has been drilled and completed in the Gamba sandstone and TST-9H is currently drilling the horizontal portion of the well for another Gamba completion. PanOcean has contracted a second rig to start the planned 2006 drilling and appraisal programme in the Obangue Field, commencing with the East Obangue appraisal well which is planned to start towards the end of June. Construction of the Central Production Facility at Tsiengui and the Central Export Pump Station, as well as the installation of the export pipeline, remain on schedule for completion by the end of July. The pipeline itself is approximately 90% complete, and start-up and commissioning of the entire Production System is expected to take about three weeks once the construction phase is completed.
PanOcean is an international energy company engaged in the exploration, production and marketing of oil and natural gas. PanOcean's asset portfolio is focused on conventional light oil production in Gabon, West Africa. PanOcean's Class B Subordinate Voting Shares and Class A Common Shares are listed for trading on the Toronto Stock Exchange under the symbols POC.B and POC.A respectively. As of 31 May 2006, the Toronto Stock Exchange discontinued its policy of denoting multi-voting, subordinated voting and non-voting securities with special suffixes. There will be no change to the respective CUSIP numbers for these securities. PanOcean has 24,726,778 Class A and Class B Shares outstanding. The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release. For further information on PanOcean, please visit the Company's web site at http://www.panoceanenergy.com/ .
Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond PanOcean's control, including: the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore PanOcean's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that PanOcean will derive therefrom. All statements included in this press release that address activities, events or developments that PanOcean expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete well. These statements are based on assumptions made by PanOcean based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
