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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 Announces 2007 Work Program-Onshore Thailand

Mar 05, 2007 - 07:00 ET

CALGARY, ALBERTA--(CCNMatthews - March 5, 2007) -

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

Pan Orient Energy Corp. (TSX VENTURE:POE) is pleased to announce that the Company and its partner, Carnarvon Petroleum Ltd., have agreed to a 2007 work program that will include the drilling of up to 37 wells and the acquisition of 100 square kilometres of 3D seismic, subject to final Government of Thailand approval, on onshore Thailand concessions L44 and L33. Drilling is anticipated to commence in late March, 2007, beginning on an appraisal of the 1994 Na Sanun-1 oil discovery utilising Aztec rig #7. Pan Orient has contracted a second rig, the Aztec #14, which will arrive in late April, 2007, and will appraise the recent POE-9 ("Na Sanun East") oil discovery. Both of the Aztec rigs are under long term contract to Pan Orient. Additionally, 3D seismic acquisition is planned for June, 2007, which will complete the 3D coverage of the 13.3 km2 Na Sanun East oil discovery and two large exploration prospects mapped at the volcanic zone target level in the immediately adjacent area, as only the southern half of the Na Sanun East discovery is covered on Pan Orient's existing 3D seismic.

L44/43 Na Sanun Production License Appraisal (POE 60% & Operator)

Three wells will target five volcanic zones within the approximately 3.3 km2 Na Sanun-1 ("NS-1") structural closure located immediately west of the POE-9 ("Na Sanun East") oil discovery. NS-1 was drilled in 1994 and flowed at rates of 1,400 bbl/d from the uppermost volcanic zone for a period of 1.5 days before immediately watering out. A post Na Sanun East discovery review of the NS-1 cement bond logs and completion reports indicated no cement whatsoever in the well bore between 1,200 and 545 meters, straddling the productive zone. Pan Orient believes the unusually sudden water breakthrough at NS-1 to be the result of a lack of isolation of the productive volcanic zone over a 655 meter interval of "free pipe". The first appraisal well, NS-3, is anticipated to spud in late March and will be located 1.4 kilometres south of NS-1. The NS-3 well will target all five volcanic zones encountered at NS-1 and is expected to take 12-14 days to drill.

L44/43 Na Sanun East (POE-9) Discovery Area (POE 60% & Operator)

The recently announced POE-9 oil discovery continues to produce oil at rates of 320 to 389 bbl/d for the last seven weeks, with a negligible 0.05% water cut. Production rates have been constrained to the 320 bbl/d level from time to time by wax formation within the "slim hole" casing and tubing design. A number of alternatives have been identified to significantly increase oil production rates and these will be implemented on future appraisal wells.

A firm program of 5 wells will appraise and develop the four volcanic zones identified within the 13.3 square kilometre structural closure of the POE-9 Na Sanun East oil discovery. The POE-9 production of 320 to 389 bbl/d is from one volcanic zone, with the other three potentially productive volcanic zones remaining un-tested. The first well, L44-G, is anticipated to spud in late April 2007 upon arrival of Aztec Rig #14, the second rig Pan Orient has under long term contract. L44-G will step out 7.2 kilometres north of the POE-9 well to the northern most edge of this large structural closure, and is targeting all four volcanic zones encountered at POE-9. A second well, L44-H, will be located approximately 1.7 kilometres north of POE-9. An additional three wells are planned to be directionally drilled from the Na Sanun production license into the area north and south of the POE-9 discovery well. An extensive coring program is planned over all four volcanic zones utilising a recently acquired 20 meter core barrel that is expected to arrive in Thailand shortly.

Recent discussions with the Government of Thailand have indicated the desire for at least one additional well into the Na Sanun East structure prior to submitting an application for a new production license. This process is anticipated to take up to six months for approval at which time full scale development of the field, beyond these initial 5 wells, utilising the two rigs is anticipated.

L44/43 Exploration (POE 60% & Operator)

In addition to the appraisal program outlined at Na Sanun and Na Sanun East, another three wells will drill high impact exploration prospects targeting multiple volcanic reservoir zones in the region of the Na Sanun East discovery. Well L44-W will target oil within the 13 square kilometre Bo Rang-1 structural closure located 8.5 kilometres north of POE-9. Bo Rang-1, drilled in 1990, tested 5.5 mmcf/d from the structurally highest volcanic zone and encountered severe lost circulation in another three, deeper volcanic zones. Pan Orient believes the potential for oil to be high in the deeper 3 volcanic intervals encountered by this well. The overall prospectivity is further highlighted by the common spill point which appears to be shared by the Bo Rang and Na Sanun East structures. Wells L44-R and L44-V will target additional 4 and 6.5 square kilometre structural closures along the POE-9 play fairway.

Another eight exploration wells will target prospects located throughout the L44 concession and appraise the shallow Si Thep oilfield that has produced over 50,000 barrels of oil from one well and has seen no drilling activity since 1990. One well will appraise the POE-6 new pool discovery made by Pan Orient in 2006.

L33/43 Exploration (POE 60% & Operator)

L33 is a large 4,000 square kilometre concession with sparse 2D seismic coverage and is located immediately north of and adjacent to concession L44. There has been one well drilled along the southern margin of the concession in 1990 and very little exploration since. Three wells will be drilled targeting volcanic and clastic reservoir prospects. An additional rank wildcat well will be drilled in a new sub basin, located 30 kilometres north of the producing Wichian Buri sub basin, which was identified on seismic data that was reprocessed in 2006 by Pan Orient. Any success would significantly increase the prospective area of proven, mature oil prone source rocks.

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, interpreted structure size 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 issued


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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