Pan Orient Energy Corp.
TSX VENTURE : POE

Pan Orient Energy Corp.

May 01, 2007 10:54 ET

Pan Orient Announces 2006 Year End Reserves Update

CALGARY, ALBERTA--(CCNMatthews - May 1, 2007) -

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

Pan Orient Energy Corp. (TSX VENTURE:POE) has released its 2006 year-end combined reserves estimates, including its previously announced Andora heavy oil reserves in Canada, and its reserves update in Thailand. Additionally, Pan Orient's 2006 complete Canadian and Thailand NI-51-101 compliant reserves report filings can be found online at www.sedar.com.



Summary:

SUMMARY OF CRUDE RESERVES AS OF JANUARY 1, 2007, AS PROVIDED BY DEGOLYER
AND MACNAUGHTON CANADA LIMITED & GAFFNEY CLINE & ASSOCIATES LTD
(FORECAST PRICES)
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Pan Orient Net
Marketable Reserves (mbbl)
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Proved
Thailand 512
Probable
Thailand 3,733
Sawn Lake Heavy Oil (67% Interest shown) 65,240
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Total Proved plus Probable 69,485


SUMMARY OF NET PRESENT VALUES AS OF JANUARY 1, 2007, AS PROVIDED BY DEGOLYER
AND MACNAUGHTON CANADA LIMITED & GAFFNEY CLINE & ASSOCIATES LTD.
(FORECAST PRICES)
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Present values Undisc. Undisc 10% 10%
- $thousands (Before Tax) (After Tax) (Before Tax) (After Tax)
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Proved
Thailand 8,067 8,067 6,384 6,384
Probable
Thailand 105,641 55,376 75,031 39,796
Sawn Lake Heavy Oil
(67% Interest) 993,000 671,300 294,000 182,200
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Total Proved plus Probable 1,106,708 734,743 375,415 228,380
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- Proven Thailand recoverable reserves of 0.512 million barrels of oil after government royalty, an increase of 34% from 0.381 million barrels in prior year.

- Proven + Probable Thailand recoverable reserves of 4.245 million barrels of oil after government royalty, a decrease of approximately 50% from 8.525 million barrels in prior year.

Thailand 2006 proven reserves saw a nominal increase and probable reserves were negatively impacted by the structural complexity of the Wichian Buri and POE-6 fault blocks revealed on newly acquired 3D seismic. Future wells drilled structurally higher in the POE-6 and Wichian Buri fault blocks are anticipated to recapture proven and probable reserves reclassified in the current evaluation. Reserves attributed to the recent POE-9 discovery were limited by the lack of well production history, core data and an undefined field oil water contact. An aggressive 2007 drilling program targeting volcanic reservoirs in the POE-9 and Na Sanun area will fully appraise the large potential of the volcanic play type.

Gaffney Cline & Associates Ltd. ("GCA"), the Thailand reserve engineers, state in their NI-51-101 filing "given the time limitations and the fact that some of this work is still ongoing, GCA considers that the results presented in this report could be viewed as conservative, even at the probable level."

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", "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.

40,056,842 common shares issued

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • 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