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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 Energy Corp.: Sawn Lake Drill Program Commences

Aug 15, 2006 - 07:30 ET

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 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 has been informed by the operator that the drilling of the first well, of a planned three well program, at Sawn Lake, Alberta has commenced.

This first well, located at 11-32-91-12w5, is scheduled to be drilled vertically, plugged back, then kicked off horizontally and is targeting "cold flow" primary production.

As previously announced on August 1, 2006, Pan Orient has transferred its 10% working interest in these 69.5 northern sections of Sawn Lake oil sands leases (where this 11-32 well is currently being drilled) to Andora Energy Corporation ("Andora"), a privately held company, in exchange for shares of Andora. Pan Orient currently owns approximately 36% of the outstanding Andora shares and upon completion of a 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.

All three wells in the program will be in close proximity to a southern 16 sections of the Sawn Lake oil sand leases, in which Andora owns 100% working interest. Four of the sixteen 100% owned Andora 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. D&M assigned 256 million barrels of original oil in-place on these four sections. 63 of the northern 69.5 sections of the Sawn Lake oil sands leases (10% Andora owned) have been assigned 1.2 billion barrels of original oil in-place (120 million barrels net to Andora) by AMJ Petroleum Consultants in a NI 51-101 compliant engineering evaluation in November, 2004.

Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand and in Western Canada.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated.

(Listed on the TSX Venture Exchange - Symbol "POE" - 35,799,620 common shares issued)

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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.
Jason Bednar
Vice President Finance and CFO
(403) 294-1770
Email: jason@panorient.ca