Pan Orient Energy Corp.
TSX VENTURE : POE

Pan Orient Energy Corp.

April 23, 2008 06:00 ET

Pan Orient's Majority Owned Subsidiary, Andora, Files SAGD Pilot Application

CALGARY, ALBERTA--(Marketwire - April 23, 2008) -

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 its 55% owned subsidiary Andora Energy Corporation ("Andora") has filed an application with the Energy Resources Conservation Board to build and operate a 2,000 bbl per day steam assisted gravity drainage (SAGD) demonstration plant at Sawn Lake, Alberta. Over the last twelve months Andora has conducted the required environmental and technical assessments as well as stake holder and First Nation consultations required to support this application.

The first of up to two well pairs to assess the economics of the project will be located on Andora's 100% lands. It is anticipated that the application could take between six and twelve months to be approved at which time Andora would commence the project, potentially as early as late in the first quarter of 2009.

This is an important step in the development of the Sawn Lake heavy oil pool and if the demonstration plant meets Andora's expectations, a full scale development project would follow. Andora currently has an independent engineering evaluation by DeGolyer and MacNaughton Canada Limited assigning a Sawn Lake interest of 274 million barrels of probable + possible recoverable reserves, net to Andora. It is anticipated that the successful results of the demonstration project would move reserves into the proven category.

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.

45,313,442 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