Pan Orient Energy Corp.

Pan Orient Energy Corp.

August 13, 2007 07:00 ET

Pan Orient Energy Corp.: Thailand Drilling Update

CALGARY, ALBERTA--(Marketwire - Aug. 13, 2007) - Pan Orient Energy Corp. (TSX VENTURE:POE) -




L44-G is a key appraisal of the northernmost extent of the Na Sanun East Oil Field, located an ambitious 7.3 kms north of the POE-9 oil discovery which was brought onto production in January 2007. L44-G is currently drilling ahead in volcanics at a depth of 991 metres, with the top of the primary volcanic target (productive at POE-9) intersected at a depth of 855 meters and a minimum 136 meters thick with drilling currently continuing within this zone. Significant oil and gas shows have been observed throughout the entire well. Of particular note, free oil was observed over the shale shakers while drilling through the primary volcanic objective at 896 and 910 meters. Lost circulation of approximately 50 bbls per hour, similar to that encountered while drilling the productive volcanic zones at POE-9 and NS-4, was encountered while drilling within the same primary target volcanic at 960 meters.

Drilling will continue through the primary target zone and one more volcanic interval, to a total depth of approximately 1,300 meters, which is anticipated to be done within the next 7 days. Upon completion of the drilling of L44-G, the Aztec #14 rig will immediately be skidded 3 meters to an adjacent well cellar and start the drilling of L44G-D1, a directional well with a sub surface volcanic target approximately 500 meters north west and 120 meters up structure from the L44-G location. Upon the completion of L44G-D1, testing will commence on both wells as the distance between concrete well cellars does not allow room for a service rig, required for testing, while simultaneously drilling the adjacent location.


The NS3-D1 well has reached a true vertical depth of 920 meters after penetrating 33 meters (true vertical thickness) of the primary volcanic objective at a subsurface location 1.5 kilometers south of the POE-9 discovery well. Elevated mud gas readings and good oil shows were observed in the well after penetrating the top of the volcanic target at approximately 887 meters TVD and prior to encountering significant mud losses (lost circulation) of 50 bbls/hr and 138 bbls/hr over two separate intervals within this primary zone.

NS3-D1 is the first of five deviated wells that will be drilled eastwards from the adjacent Na Sanun production licence into the Na Sanun East structure to intersect the target volcanic section on the high side of the fault. This, and the other planned deviated wells, will appraise and develop the Na Sanun East Oil Field in the vicinity of the POE-9 discovery well with the objective of significantly increasing oil production.

The NS3-D1 well is currently circulating, prior to logging, with testing anticipated to commence within the next 7 days.


L44-H is located 1.5 kilometers north of the POE-9 discovery, across a large fault in what is interpreted on 3D seismic to be a large, structurally higher fault compartment. Success at L44-H has the potential, like L44-G, to prove up a large area outside of the immediate POE-9 discovery fault block. Drilling is expected to commence within the next six days as soon as logging operations on NS3-D1 are completed and the Aztec #7 can be moved and rigged up on location. Pending success at the vertical L44-H well, an additional two deviated wells we be drilled at this location from concrete well cellars already constructed on this well pad.



L33-D has been plugged and abandoned due to lack of reservoir development.

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.

41,634,842 common shares issued

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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