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

Pan Orient Begins 2007 Drill Program Onshore Thailand

Apr 02, 2007 - 07:00 ET

BANGKOK, THAILAND--(CCNMatthews - April 2, 2007) -


Pan Orient Energy Corp. (TSX VENTURE:POE) is pleased to announce drilling operations have commenced on the Na Sanun-3 ("NS-3") appraisal well, the first of up to four wells targeting five potential oil bearing volcanic intervals within an independent fault block located immediately west of the POE-9 oil discovery which was announced in January 2007. It is anticipated that NS-3 will take approximately 12 days to drill to total depth. The NS-3 well is the first in a 2007 drill program that includes up to 37 wells on Pan Orient's three onshore Thailand concessions comprising 3 million acres. Pan Orient has two drilling rigs under long term contract.

NS-3 is located 1.4 kilometres south of the original Na Sanun-1 ("NS-1") oil discovery made in 1994 by a previous operator. NS-1 flowed oil to surface at rates of 1,400 bbl/d from perforations over a single volcanic reservoir interval before going to 100% water within a very brief period. Cement bond logs run in NS-1 indicate that the cementing operations were unsuccessful, with no cement bond over an interval of approximately 466 metres, straddling both the productive zone as well as a deeper, fractured volcanic interpreted as water bearing from open hole logs. It is interpreted that the early watering out of NS-1 is not indicative of the oil potential of the Na Sanun structural closure.

POE-9, located in the immediately adjacent fault block, continues to produce from the single tested volcanic interval at rates currently averaging approximately 330 bbl/d, with a 0.05% water cut, with rates restricted by wax formation within the annulus. A recently competed third party analysis of an oil sample from POE-9 indicates an oil quality superior to Wichian Buri oils with a gravity of 35.5 degrees API and a wax content of 15% versus 29.5 degrees API and 25-42% wax content. Both crude oils have a very low sulphur content. An extended drill program into the POE-9 fault block is scheduled to begin in late April, upon arrival of the second drilling rig.

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 issued

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this 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