Pan Orient Energy Corp.
TSX VENTURE : POE

Pan Orient Energy Corp.

March 17, 2008 07:45 ET

Pan Orient Announces 274 Million Barrels of Andora Sawn Lake Recoverable Reserves, Up 34% From Prior Year

CALGARY, ALBERTA--(Marketwire - March 17, 2008) -

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

Pan Orient Energy Corp. (TSX VENTURE:POE), on behalf of its 55% owned subsidiary Andora Energy Corporation, is pleased to release its December 31, 2007 National Instrument 51-101 compliant reserves appraisal for its heavy oil project at Sawn Lake Alberta, Canada, as evaluated by DeGolyer and MacNaughton Canada Limited.

Highlights:

- Andora's net Sawn Lake interest in probable + possible recoverable reserves of 274 million barrels of oil, an increase of 34% from 205 million barrels in prior year.

- Net present value (discounted 10% before tax - forecast prices) of $1.47 billion ($17.87 per Pan Orient share for its net 55% interest in Andora) attributed to Andora's Sawn Lake probable + possible reserves.

- Probable Sawn Lake recoverable reserves of 132.6 million barrels of oil, an increase of 19% from 111.2 million barrels in prior year.

- Net present value (discounted 10% before tax - forecast prices) of $737 million ($8.96 per Pan Orient share for its net 55% interest in Andora) attributed to Sawn Lake probable reserves, an increase of 68% from $439 million in prior year.

Pan Orient, through Andora, currently holds a 100% operated working interest in 16 sections of Sawn Lake oil sand leases ("South Block") plus an additional 50% operated working interest in oil sand leases and related assets covering 12 sections of land ("Central Block"). Andora also owns a 10% working interest in 51 sections (10 sections in the Central Block and 41 sections in a Northern Block) with the Central and Northern Blocks located immediately north of, and adjacent to the southern 100% owned lands. Additionally, as outlined in a December 4, 2007, press release, Andora owns a gross overriding royalty ("GORR") of 3% of a 40% working interest on the 12 sections in the Central Block that it already has a 50% interest in, plus an additional 3% GORR of a 80% working interest in a remaining 24.5 sections that it has a 10% working interest of.



Andora Reserves - Sawn Lake, Alberta
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SUMMARY OF CRUDE RESERVES AS OF JANUARY 1, 2008, AS PROVIDED BY DEGOLYER
AND MACNAUGHTON CANADA LIMITED
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Marketable Andora Gross Pan Orient Gross
Reserves 100% (mbbl) 55% (mbbl)
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Proved - -

Probable 132,584 72,921
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Total Proved plus Probable 132,584 72,921

Total Possible 141,749 77,962

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Total Proved plus Probable plus Possible 274,333 150,883
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SUMMARY OF NET PRESENT VALUES AS OF JANUARY 1, 2008, AS PROVIDED BY DEGOLYER
AND MACNAUGHTON CANADA LIMITED (FORECAST PRICES) - ANDORA 100%
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Present values - $thousands Undisc. 5% 10%
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Proved
Probable 1,894,000 1,188,000 737,000
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Total Proved plus Probable
(Before Taxes) 1,894,000 1,188,000 737,000
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Total Proved plus Probable
(After Taxes) 1,408,000 857,000 508,000
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SUMMARY OF NET PRESENT VALUES AS OF JANUARY 1, 2008, AS PROVIDED BY DEGOLYER
AND MACNAUGHTON CANADA LIMITED (FORECAST PRICES) - PAN ORIENT 55%
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Present values - $thousands Undisc. 5% 10%
----------------------------------------------------------------------------
Proved - - -
Probable 1,041,700 653,400 405,400
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Total Proved plus Probable
(Before Taxes) 1,041,700 653,400 405,400
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Total Proved plus Probable
(After Taxes) 774,400 471,400 279,400
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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.

45,247,442 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