Pacific Asia China Energy Inc.
TSX VENTURE : PCE

Pacific Asia China Energy Inc.

January 21, 2008 09:01 ET

Pacific Asia China Energy Completes Fracturing Program in Guizhou 3-Well CBM Pilot Test

KELOWNA, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2008) - PACIFIC ASIA CHINA ENERGY INC. ("PACE" or "the Company") (TSX VENTURE:PCE) is pleased to announce that fracturing operations have been completed in the 3-well vertical pilot program (wells ZY04-1, -2 and -3) at its Guizhou CBM project.

Two coal seams (#19 and #26/27) were fracced in each of the 3 wells. The operations were successful and in accord with the fracc design. Management is encouraged by the immediate flow of gas to surface following the fracc operations.

Installation of pumping equipment will be completed within a week and dewatering operations will begin shortly thereafter. Dewatering and monitoring of reservoir conditions is expected to continue for 2 to 3 months in order to determine the feasibility of economic gas production from these wells.

The Company plans to test other completion procedures in this area to determine the most effective method of production from this multi-seam CBM play. Cavitations of selected seams in two vertical wells and a dual-lateral well in a selected seam are planned for Q1 of 2008.

PACIFIC ASIA CHINA ENERGY INC. is a Canadian based resource company specializing in the strategic development of Coal Bed Methane projects in China, CBM drilling and coal degasification through its 50% owned subsidiary, PACE MITCHELL DRILLING CORP. Common Shares of PACIFIC ASIA CHINA ENERGY INC. are listed on the TSX Venture Exchange under the symbol "PCE".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

ON BEHALF OF THE BOARD

Devinder Randhawa, Chairman & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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