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

Pan Orient Provides Thailand Drilling Update

Sep 05, 2006 - 08:00 ET

CALGARY, ALBERTA--(CCNMatthews - Sept. 5, 2006) -


Pan Orient Energy Corp. (TSX VENTURE:POE) ("Pan Orient") is pleased to provide an update on its onshore Thailand Phase 1 drilling program.

On September 1, 2006, POE-8 was drilled to a total depth of 1,312 meters, approximately 200 meters below the initially planned depth of 1,100 meters. The deepening of POE-8 was a decision made on the basis of strong indications of hydrocarbons (oil shows and high mud gas readings) while drilling at and below 1,100 meters.

Logging indicates hydrocarbon pay of approximately 2 meters within the F sand, 3 meters within the G sand and 4 meters in a deeper sand at 1,250 meters. Neither the G sand nor the deeper sand has been tested or produced on the concession to date. Logs also suggest hydrocarbons may be present in shallower zones at 615 meters, 635 meters, 660 meters and 785 meters. While uncertain on logs, indications of hydrocarbons while drilling also suggest hydrocarbon potential within a fractured volcanic sill at 1,155 meters. Testing will be required to confirm the hydrocarbon potential of these zones.

As a result of a poor cement job while casing the well, current operations involve a remedial program to clean the well bore. This will be completed over the next few days at which time it is expected POE-8 will be suspended for testing, using the smaller workover drilling rig currently working on site.

The fourth and next well to be drilled, POE-6, is located 500 meters north and 35 meters structurally up dip from a well drilled in the late 1980's that flowed oil to surface from a thin oil column over water. POE-6 will test a large area of possible reserves, defined by the Gaffney Cline and Associates reserve report, that are located within a large fault block to the west of the main Wichian Buri field.

The first attempt at production optimisation within the Wichian Buri oil field has resulted in stabilised production of approximately 20 barrels per day from an older well, WB-N4, achieved at negligible cost. Prior to the change out of the jet pump to beam pump, WB-N4 was producing at approximately 5 barrels of oil per day. This same operation will be performed on WB-N6 where similar increases in production are anticipated.

Commenting on the current Thailand drilling operation, Pan Orient president and CEO Jeff Chisholm stated, "Based on the drilling results from POE-1 and POE-8, Pan Orient is currently focused on confirming the indicated multi zone oil potential between 600 and 1,300 meters depth in the greater Wichian Buri region, in addition to increasing production from the F and G sands. Exploration to date has inadequately assessed the hydrocarbon potential of the full sedimentary section other than the main F sand reservoir."

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


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