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

Pan Orient Energy Thailand Update

Dec 18, 2006 - 07:35 ET

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Pan Orient Energy Corp. (TSX VENTURE:POE)



- POE-3 is producing oil from the commingled "F" and "H" sands at stabilised rates of 106 bbl/d.

- POE-9 high impact exploration well drilling is commencing today.

- POE-1 development well has completed drilling and encountered 8 meters of net oil pay in the target "F" sandstone. Testing is anticipated to commence shortly.

- POE-5 commingling of the "G" and "H" sands has commenced with primary target "F" sandstone still to be tested.

- POE-2 "F" sand has just been perforated with oil flowing to surface during clean up.

POE-3 Production Testing

POE-3 is flowing oil at stabilised production rates of 106 bbl/d from the commingled "F" and "H" sands. Should "G" sand testing be successful at POE-5, the "G" sand will also be perforated at POE-3.

POE-9 Exploration Well

POE-9 is a recent addition to the current drilling program and will be the last well drilled in the Phase 1 program. This location is an appraisal of the Na Sanun-1 well drilled in 1997 that flowed approximately 1,400 bbl/d from a fractured volcanic sill before watering out. POE-9 is located approximately 400 meters east and 150 meters up dip from Na Sanun-1, targeting a number of volcanic sills within structural closure. The prospect is deemed moderate risk, high impact by management. Drilling is anticipated to be completed by the end of December 2006.

POE-1 Development Well

POE-1 was drilled to a total depth of 995 meters encountering approximately 8 meters of very good quality "F" sandstone in the northernmost and structurally highest position to date in the main Wichian Buri field. Drilling was terminated above the "G" sand due to drilling difficulties experienced in the original well bore below this level. Testing is anticipated to commence shortly.

POE-5 Production Testing

POE-5 produced oil at stable rates of 22 bbl/d from the "H" sand and testing has just commenced commingled with the "G" sand. Oil is flowing to surface with no stabilised rates to report at this time. Upon completion of commingled testing from the "H" and "G" sands, the "F" sand will be perforated and production commingled from all three zones.

POE-2 Production Testing

POE-2 has just been perforated in the "F" sand and is currently being flowed commingled with the earlier perforated "G" sand zone. Oil is flowing to the surface and stabilised rates will likely be achieved over the next 5 to 7 days.


Pan Orient management is pleased with the Thailand test results achieved to date. Gross Thai production is currently approximately 275 bbl/d and expected to increase further as a number of previously producing wells are currently undergoing perforating operations, or in the earliest stages of clean up after perforating new zones. Operations that will include the perforating and testing of new zones in six existing wells drilled by prior operators, in addition to newly drilled wells, will continue to year end with updates provided on a timely basis. Drilling results from the upcoming POE-9 exploration well are anticipated by year end with testing, in the event of success, to take place in the first 2 weeks of January.

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.

40,056,842 common shares

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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


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