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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.: Thailand Drilling Update

Aug 21, 2006 - 13:20 ET

CALGARY, ALBERTA--(CCNMatthews - Aug. 21, 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 the start of drilling of POE-8, the third well of an initially planned six well program, onshore Thailand. The prior well, POE-1 encountered mechanical difficulties just short of reaching total depth and will be re-entered upon the arrival of equipment that is required to rectify the problem.

An initial six well Phase 1 drilling program has now been increased to seven wells, two of which, POE-6 and POE-7, are exploratory in nature and targeting new potential reserves as well as possible reserves previously defined by third party engineering. POE-6 and POE-7 are considered high impact and moderate risk by management with POE-7 being a new prospect defined from the 3D seismic survey completed in June 2006. Pan Orient has also increased its Phase 2 drilling plans to include a 15-20 well drill program targeting both existing possible reserves and new prospects defined from the recent 3D seismic program, all outside the area of existing production. Phase 2 drilling is currently scheduled to begin in late 2006, after completion of the first phase of drilling and receipt of required regulatory approvals.

In addition to an increased drilling program, the first attempt at production optimisation within the Wichian Buri oil field has resulted in a significant increase in oil production from the WB-N4 well. Various other procedures will be undertaken over the next 30 days to further increase production levels from other existing wells, some of which have not produced to date.

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

This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate, "should" "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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.
Jeff Chisholm
President and CEO
(403) 294-1770

or

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