Carnarvon Petroleum (ASX: CVN) has said that Pan Orient Energy (TSX: POE) has completed the sale of its 60% stake in three Thailand petroleum concessions for US$179 million (A$176.7 million).
While the buyer of concessions L44/43, L33/43 and SW1 has not been disclosed, Carnarvon said further details on future plans for the fields will be provided following meetings with the new operator.
An expanded drilling program would bode well for Carnarvon, which recently added 2 new production wells and flagged that a 10-15 well program targeting prospective sandstone reservoirs in L44/43 will start once regulatory approval is received.
Production during the current quarter averaged at about 665 barrels per day net to Carnarvon.
The purchase had valued Carnarvon’s stake in the project at about US$113 million, or US$0.16 per share, well above Gaffney, Cline & Associates’ assessed value for the proved reserves net to Carnarvon of US$84 million.
Carnarvon holds certified 1P reserves of 3.8 million barrels (MMbbl) of oil with upside probable and possible reserves of 8.3MMbbl and 10.5MMbbl respectively.
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