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

Pan Orient Energy Corp.-Thailand: Operations Update

Oct 09, 2007 - 08:00 ET

CALGARY, ALBERTA--(Marketwire - Oct. 9, 2007) - Pan Orient Energy Corp. (TSX VENTURE:POE) -


L44G-D1 and L44-G Appraisal Wells (60% WI & Operator)

Pan Orient Energy Corp.'s Na Sanun East ("NSE") oil field appraisal wells L44G-D1 and L44-G, both in the northern fault compartment of the NSE oil field, have been perforated over 5 and 3 intervals, respectively. Preliminary testing results indicate an oil and gas charged system with the exception of the lowermost tested interval in the structurally lowest well (L44-G) that tested water.

The second interval tested on L44G-D1 flowed minor amounts of oil, approximately 3-4 barrels, with no indications of water. The first, the structurally lowest interval, tested was tight with no influx of any kind. Three additional zones have been perforated, above the interval that flowed minor oil, with testing to start within 24 hours. Results will be announced shortly.

These are the first two wells drilled into the northern fault compartment, which is at an early stage of development. Five more wells are planned on locations for which Thailand government approval is anticipated later this month. All new locations will be targeted utilizing the newly acquired 3D seismic data that completed processing two weeks ago. Management remains confident in the overall production and reserves potential of the NSE oil discovery.

L44-H Appraisal Well (60% WI & Operator)

L44-H, in the central fault compartment of the NSE oil field, continues to perform exceptionally well with production rates averaging approximately 1,280 bbl/d.

NS8-D1 Development Well (60% WI & Operator)

NS8-D1 is a deviated development well, drilled to true vertical depth of 886 meters, within the southern fault compartment of the NSE oil field. Approximately 31 meters (measured thickness) of the main target volcanic reservoir was penetrated prior to the termination of drilling due to the severity of drilling mud losses into this extremely fractured and permeable volcanic reservoir. Drilling mud losses of 9.2 bbls/hr, 80 bbls/hr and 102 bbls/hr were encountered at 944, 956 and 977 meters measured depth respectively, with total drilling mud losses of approximately 3,100 barrels. Numerous oil shows and high mud gas readings were encountered during drilling. Test results are anticipated within the next 7 to 10 days.

NS2-D1 Development Well (60% WI & Operator)

NS2-D1 is a deviated development well currently drilling ahead at a true vertical depth of 838 meters within the main volcanic reservoir of the southern fault compartment of the NSE oil field. Drilling continues with mud losses of up to 180 bbls/hr into this extremely fractured and permeable volcanic reservoir. Drilling is anticipated to be completed within the next 5 days and testing results anticipated within 7 to 10 days after drilling is completed.

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.

41,634,842 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