Pan Orient Energy Corp.
TSX VENTURE : POE

Pan Orient Energy Corp.

October 16, 2006 07:00 ET

Pan Orient Energy Releases Thailand Drilling Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 16, 2006) -

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

Pan Orient Energy Corp. (TSX VENTURE:POE) is pleased to announce that drilling and logging of the POE-3 development well has been completed. Oil shows were encountered while drilling over a combined interval of approximately 125 meters. Interpretation of open hole logs indicates net hydrocarbon pay of approximately 15 meters in the F sand, 9 meters in the G sand and 5.2 meters in the H sand. The H sand has not produced on the concession to date and has had no reserves assigned to it, however, based on the log analysis, is interpreted to have very good reservoir characteristics.

After delays related to the air transport of perforating charges into Thailand, testing is expected to commence on October 17, 2006. POE-6 will be the first well tested in the multi-well testing program and results will be announced immediately upon achieving a stabilised production rate.

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", "interpreted" 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.

40,040,770 common shares issued

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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