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NEWS RELEASE TRANSMITTED BY Marketwire

FOR: PAN ORIENT ENERGY CORP.

TSX VENTURE SYMBOL: POE - | View Quote |  View Chart |  View Financials | 

Pan Orient Closes Andora Transactions and Provides NAV Update

Aug 01, 2006 - 07:38 ET

CALGARY, ALBERTA--(CCNMatthews - Aug. 1, 2006) -

NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is pleased to announce that it now owns approximately 36% of the outstanding Andora Energy Corporation ("Andora") shares. Upon completion of the remaining transaction, currently scheduled for mid-September, Pan Orient will own a minimum 51% interest in Andora. Binding lock-up agreements exist between Pan Orient and certain shareholders of Andora, ensuring Pan Orient a minimum 51% ownership in Andora. In addition to Pan Orient's controlling interest in Andora, under the terms of the agreements, three of the five Andora directors and the Andora CEO will be nominees of Pan Orient.

Andora is a private oil and gas company with a 100% working interest in petroleum licenses and related assets covering 16 sections of land located immediately south of, and adjacent to, Pan Orient's Sawn Lake property. Four of the Andora sixteen sections of oil sands leases have been assigned net probable and possible recoverable reserves of 98 million barrels (25.9 million probable and 72 million barrels possible) based on an independent third party NI 51-101 compliant reserves report completed by DeGolyer and McNaughten (D&M) in September of 2005.

Proforma Net Asset Value of $5.22 to $5.47 per Pan Orient share

Following the completion of the Andora transactions, Pan Orient's NAV is calculated at $5.22 to $5.47 per share, fully diluted, given the following facts and assumptions:

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.

Pan Orient Energy Corp.
Jeff Chisholm
President and CEO
(403) 294-1770

or

Pan Orient Energy Corp.
Jason Bednar
Vice President Finance and CFO
(403) 294-1770
Email: jason@panorient.ca

or

Andora Energy Corporation
Tyler Cran
President and CEO
(403) 538-8441
Email: tcran@andoraenergy.com