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Pan Orient Energy Corp.: Thailand Operations Update

Feb 10, 2009 - 07:30 ET




NSE-F1 appraisal well (60-per-cent working interest and operator)

The NSE-F1 appraisal well is currently drilling ahead horizontally within the main volcanic reservoir target at a location 850 meters northwest of the producing NSE-C1 well and outside the reserve envelope of the NSE central fault compartment as defined in the 2007 year end reserve report. NSE-F1 is targeting a large area of prospective resource potential that was defined on 3D seismic. Drilling is anticipated to be completed in the next 10 days with testing, if justified, to take another 10 days at which time results will be announced.

NSE-G1 appraisal well (60-per-cent working interest and operator)

The NSE-G1 appraisal well is located 538 meters northwest of the NSE-D drill pad and is targeting the main volcanic reservoir along the boundary of the central and north fault compartments, with the intent of extending the productive limits of the NSE central fault compartment if successful. Casing is currently being set just above the main target zone with drilling anticipated to be completed within the next 10 days and testing, if justified, to take an additional 10 days.

NSE-E2 appraisal well (60-per-cent working interest and operator)

The NSE-E2 appraisal well, targeting potential volcanic reservoirs approximately 365 meters south east of the NSE-E1 discovery well, failed to encounter the main volcanic objective, which had been faulted out at this location, but encountered a deeper, oil stained volcanic target approximately 25 meters thick. Testing of this deeper potential volcanic reservoir resulted in the recovery of approximately 15 barrels of oil and no water. Subsequent seismic interpretation suggests the deviated well bore crossed the main NSE bounding fault and encountered this deeper volcanic below the main producing zone of the NSE central fault compartment. Although the oil rate is sub commercial at this particular location, this deeper volcanic zone will be evaluated by future drilling and a side track will be drilled from the existing NSE-E2 well bore targeting the main volcanic zone that is currently producing at approximately 800 bopd in the NSE-E1 discovery well.

The NSE-E1 and E2 wells were designed to test an approximately 1 square kilometer structural closure located on the down thrown side of the main NSE field central fault compartment called NSE Central B. There had been no reserves, of any category, assigned to the NSE Central B prospect in the year end 2007 NI51-101 compliant reserves report.

NSE-D2ST1 appraisal well (60-per-cent working interest and operator)

The second sidetrack of this well, NSE-D2ST2, has now encountered the oil leg of the main volcanic reservoir and will be put on electrical submersible pump within the next seven days to determine the rates at which it is capable of flowing oil.

L44-V appraisal well (60-per-cent working interest and operator)

The L44-V appraisal well was drilled from a surface location approximately 1.3 kilometers south west of the Bo Rang-1 gas discovery. L44-V targeted a potential down dip oil leg within a volcanic reservoir that tested 5.5MMcfg/d at the structurally higher Bo Rang-1 well, which was drilled by an earlier operator of the L44 concession area. The main volcanic objective was encountered at a TVD of approximately 720 meters and penetrated an approximately 55 meter thick volcanic section that had oil shows and very high mud gas spikes of up to 33%, exhibiting both heavy (C5) and light (C1) hydrocarbons. A shallower secondary volcanic objective was also encountered at a depth of approximately 500 meters TVD with mud losses while drilling of approximately 100 bbls in combination with a minor gas kick.

Testing of the lower and upper volcanic targets has been completed with no recovery of oil, gas or water (no permeability) despite the encouraging oil shows and mud gas readings observed while drilling. A follow up location is currently being constructed that will twin the original Bo Rang-1 well and test the oil potential of a 50 meter thick volcanic section that was penetrated below the original 25 meter thick gas bearing volcanic. It is this targeted deeper section that exhibited oil shows and elevated mud gas readings during the drilling of L44-V.

L44-CD1 appraisal well (60-per-cent working interest and operator)

L44C-D1 was drilled to target depth and encountered a heavily fractured volcanic section with severe lost circulation. Subsequent testing resulted in the recovery of 100% water. Future drilling will continue to target this volcanic reservoir underlying the Wichian Buri oilfield further up dip towards the L44/L33 concession boundary at a location currently under construction 3.2 kms to the northeast.

Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia 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.

45,568,366 common shares issued.
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: