Pan Orient Energy Corp.

Pan Orient Energy Corp.

June 06, 2006 08:45 ET

Pan Orient Energy Corp.: Contracting of Second Thailand Rig and Completion of 3D Seismic

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) -


Pan Orient Energy Corp. (TSX VENTURE:POE) is pleased to announce the contracting of a second Thailand drilling rig, the completion of its 3D seismic acquisition and further Thailand operations updates.


Pan Orient has contracted a second drilling rig, with a depth capacity of 2,000 meters, for the Company's operated onshore Thailand L44 and L33 drilling program. The term of the contract is for one year with options to extend the contract for further six month periods. "This second rig will provide the Company with increased flexibility in terms of targeting deeper horizons and accelerating the drilling program by either drilling two wells concurrently or using the smaller, lower cost rig for testing and completions" said Mr. Jeff Chisholm, Pan Orient's President and CEO.

The first well, of an initial 5 to 6 well back-to-back program, is anticipated to spud by July 1 and is based on a pre-existing 14 square km 3D seismic survey which has been reprocessed and interpreted over the last several months. These wells will be drilled within the area of current production, with the intent of substantially increasing existing production and reclassifying some of the Company's probable and possible reserves into proven and probable categories.

The second phase of the drilling program includes 15 to 20 wells that will be based on the newly acquired 245 square km 3D seismic survey that was successfully completed by Pan Orient using CGG (France) 3 days ago. Processing of the 3D is currently underway in Calgary, Canada, with second phase drilling scheduled to begin in late October, post monsoon.


On June 15, Mr. Spencer Lock will take up duties as Production Manager for Pan Orient Energy's Thailand operation, joining Mr. Ian Halstead (Pan Orient's recently appointed COO, also based out of Bangkok). Most recently, Mr. Lock was Production Manager for a large UK independent operator in Rajasthan, India where high pour point, high paraffin content crude, similar to onshore Thailand, is produced.

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", "scheduled", "intent", "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.

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

35,799,620 common shares issued

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • 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