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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 276% Increase in Sawn Lake Probable Reserves

Feb 06, 2007 - 06:00 ET

CALGARY, ALBERTA--(CCNMatthews - Feb. 6, 2007) -

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

Pan Orient Energy Corp. (TSX VENTURE:POE) ("Pan Orient"), on behalf of its 67% owned subsidiary Andora Energy Corporation, is pleased to release its December 31, 2006 reserves estimates for its heavy oil project at Sawn Lake Alberta, Canada, as evaluated by DeGolyer and MacNaughton Canada Limited.

Highlights:

- Probable Sawn Lake recoverable reserves of 97.4 million barrels of oil after government royalty, an increase of 276% from 25.9 million barrels in prior year.

- Net present value (discounted 10% before tax - forecast prices) of $439 million ($7.34 per Pan Orient share for its net 67% interest in Andora) attributed to Sawn Lake probable reserves, an increase of 246% from $127 million in prior year.

- Probable + Possible recoverable reserves of 179 million barrels of oil after government royalty, an increase of 85% from 97 million barrels in prior year.

- Net present value (discounted 10% before tax - forecast prices) of $830 million attributed to Sawn Lake probable + possible reserves.


Pan Orient, through Andora, currently holds an unencumbered (no GORR) 10% working interest in 69.5 sections of Sawn Lake oil sand leases ("North Block") plus an additional unencumbered (no GORR) 100% working interest in oil sand leases and related assets covering 16 sections of land ("South Block") located immediately south of, and adjacent to the northern 69.5 sections. Additionally, as outlined in a February 5, 2007, press release, Andora has purchased a gross overriding royalty ("GORR") of 3% on 36.5 (of the northern 69.5) sections of Sawn Lake oil sands leases.

Andora Reserves - Sawn Lake, Alberta

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
Email: jason@panorient.ca