Press Release Navigation

<<< Previous

Headlines

Next >>>


NEWS RELEASE TRANSMITTED BY Marketwire

FOR: PAN ORIENT ENERGY CORP.

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

Pan Orient Energy Corp.: New Well NSE-A3 on Production at 2,250 bopd

Jul 24, 2008 - 06:00 ET

CALGARY, ALBERTA--(Marketwire - July 24, 2008) - Pan Orient Energy Corp. (TSX VENTURE:POE) - 

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

NSE-A3 Horizontal Appraisal Well (60% WI & Operator)

The NSE-A3 horizontal well is free flowing oil from the main volcanic reservoir within the NSE central fault compartment at a stabilized rate of approximately 2,250 bopd with 0.1% water cut and choke settings/surface flowing pressures of 42/64" @120 psi on the tubing and 24/64" @130 psi on the casing.

The NSE-A3 horizontal appraisal well was drilled to a total measured depth of 897 meters, penetrating the top of the main volcanic target at a depth of 755 meters TVD at a location approximately 420 meters due north of the NSE-A1 surface location. A 60 meter horizontal section was drilled within the upper 6 meters of the approximately 180 meter thick main volcanic. On July 17, Pan Orient announced a 1,245 bopd discovery of a new upper volcanic/volcanic clastic reservoir in its NSE-A1 well. This newly discovered productive zone at NSE-A1 was also encountered in NSE-A3, and drilled though, exhibiting high mud gas readings and good oil shows.

L44-C Vertical Appraisal Well (60% WI & Operator)

The L44-C vertical appraisal well is currently drilling ahead at a depth of approximately 1,000 meters through and towards multi-zone objectives within the F and G sandstones and a deeper "WB-1" volcanic at a location 1.15 kilometers north of the POE-6 oil discovery and within the POE-6 fault compartment. Oil shows and elevated mud gas readings have been observed at a number of stratigraphic levels while drilling. The WB-1 "Deep" volcanic reservoir is anticipated to be encountered at a depth of approximately 1,250 meters.

L44-C is part of a multi-well appraisal program that is intended to define the potential of sandstone and volcanic reservoir targets in the up dip portion of the POE-6 and Wichian Buri fault compartments for future vertical and horizontal infill drilling. L44-C drilling is anticipated to be completed within approximately 10 days.

NSE-A4 New Horizontal Appraisal Well (60% WI & Operator)

The NSE-A4 horizontal appraisal well is currently drilling ahead at a depth of approximately 120 meters towards the top of the main volcanic reservoir objective at a subsurface location approximately 350 meters northeast of the NSE-A drilling pad, within the NSE central fault compartment. Drilling is anticipated to be completed within approximately 14 days.

SUMMARY

The high deliverability NSE-A3 flow rates, combined with the new zone discovery at NSE-A1 announced one week ago, provide an exceptional start to the main NSE central fault compartment development that is now underway. The multi-well drill pad containing NSE-A1, NSE-A3, and NSE-A4 was the first of its kind in Pan Orient's development plan. There is currently one additional multi-well drill pad where construction has been completed, three additional multi-well drill pads that are under construction plus another three multi-well drill pads where the land has been purchased and construction is about to commence.

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.

45,769,766 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: jason@panorient.ca