Pan Orient Energy Corp.
TSX VENTURE : POE

Pan Orient Energy Corp.

July 31, 2006 08:30 ET

Pan Orient Completes Drilling of POE-2 Well Onshore Thailand

CALGARY, ALBERTA--(CCNMatthews - July 31, 2006) -

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

Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is pleased to announce that it has drilled, logged and cased the first well of a planned initial six well program located onshore Thailand.

Good to very good hydrocarbon shows and elevated mud gas readings were encountered while drilling through the F and G sand targets over a net interval of approximately 33 meters. Preliminary log analysis indicates a net pay of 11.4 meters in thickness, 5.6 meters in the G sand and 5.8 meters in the F sand.

There is currently no G sand oil production from the Wichian Buri field. On the basis of RFT pressure data and well logs from two wells located in the vicinity of the POE-2 location, Gaffney Cline has assigned 3P reserves of 3.43 million net recoverable barrels in the G sand. These existing two nearby wells have never been tested in the G sand but currently produce from the F sand. Should the G sand prove to flow at sustained commercial rates at the POE-2 location, combined with the existing well data, this would potentially move a large portion of the G sand possible reserves in to the proven and probable reserves categories.

A letter of intent has been signed for a service rig to be available on September 1, 2006, at which time testing is expected to commence. This will allow for extended pump testing of all newly drilled wells to establish the potential for commercial production. It will then move to existing producing wells in an attempt to enhance production performance.

The Aztec #7 rig is currently moving to our second drilling location POE-1, located approximately 700 meters north of POE-2.

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. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated.

(Listed on the TSX Venture Exchange - Symbol "POE" - 35,799,620 common shares issued)

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