Pacific Asia China Energy Inc.

Pacific Asia China Energy Inc.

April 05, 2006 10:34 ET

Pacific Asia China Energy Selects Drill Test Well Targets on Huangshi CBM Project

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - April 5, 2006) - PACIFIC ASIA CHINA ENERGY INC. ("PACE") (TSX VENTURE:PCE) is pleased to update activities on its' Huangshi Coal Bed Methane ("CBM") project in Hubei Province, China. As a result of further data review and site visits, our geological team have selected two drill test well sites and have submitted for tender to a number of Chinese drilling teams for such drilling work to be done.

The Huangshi project comprises approximately 305 sq. kms. in a proven coal bearing district with very good infrastructure and in proximity to commercial markets. The property is adjacent to the city of Huangshi, which has a population of approximately 2.5 million, and is the home of a major steel mill and numerous other potential industrial customers. The Huangshi Municipal Pipeline System, currently under-utilized, services local industrial users with gas derived from coal-gasification processed at a local surface plant. As well, both north-south and east-west provincial gas pipelines are in close proximity to the Huangshi area.

The following tests will also be performed in conjunction with the drilling operation:

- Desorption tests for all coal seams for gas content and its composition;

- Adsorption isotherm tests;

- Injection fall off test for parameters of permeability, reservoir pressure, pressure gradient etc.;

- Measurements of In-situ Stress of coal seams.

It is expected that the drill team selection will take place shortly and that drilling will commence late April- early May.

PACIFIC ASIA CHINA ENERGY INC. is a Canadian based resource company specializing in the strategic development of Coal Bed Methane projects in China. Common Shares of PACIFIC ASIA CHINA ENERGY INC. are listed on the TSX Venture Exchange under the symbol "PCE".


Dev Randhawa, President and 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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