Traders continue to overreact to latest update from Pan Orient Energy Corp. (CVE:POE) (PINK:POEFF) pushing the price further down.
POE stock price tanked another 4.3% down this morning, generating a third of a normal daily trading volume over the first half an hour and promising a strong trading day ahead.
Investors are getting rid of the stock in reaction to the company update on operations which was announced yesterday. Pan’s last tested exploration well L53-DST3 has reached 400 bopd with a water cut of somewhat 25%. The testing has yet to show where the water came from. The company will finish their production tests in 37 days.
The company believes there’s more potential in the deeper sands, which have only been penetrated in the L53-DST3 well.
Another well is planned to be started within the coming two weeks. The L353-DST1 will be testing the deeper sands as well, in the part of the field that has unproved fault compartment adjacent to the proven oil bearing one.
Pan also expects a contingent resource report with newest data within the next ten days. Along with that a 3D seismic survey is also underway on Concession L53 and should be completed in May, providing information needed to drill additional wells.
