Pan Orient Confirms New Oil Producing Reservoir

Pan Orient Energy Corp. reported that testing commenced approximately 2 weeks ago on its POE-3 well from the "H" sand in the Wichian Buri field onshore Thailand. The company said that one of three zones were interpreted as hydrocarbon-bearing on the basis of open-hole logs.

Oil production from the well has stabilized at 25 bbl/d from only 3 meters of perforations in the "H" sand. Upon completion of testing from the "H" sand, the "G" and "F" sands will be perforated and production commingled. Prior to the drilling of POE-3 there was no production or reserves assigned to the "H" sand.

To confirm reservoir performance, all new zones will be produced for a 20-30 day period before additional zones are perforated, at which time all production will be commingled.

POE-5 Production Testing

Pan Orient also announced that testing has commenced from the "H" sand in POE-5, one of three zones interpreted as hydrocarbon-bearing on the basis of open-hole logs. Having just been put on beam pump, there are no stabilized rates to report at this time. Upon completion of testing from the "H" sand, the "G" and "F" sands will be perforated and production commingled.

POE-7 Exploration Well

The Aztec #7 rig is currently drilling ahead to a total depth of approximately 1,350 meters at POE-7, an appraisal to the HP-1 well drilled in 2002 that encountered 3 meters of hydrocarbons at the top of the "F" sand. The company anticipates completion of drilling and logging later this week.

POE-9 Exploration Well

POE-9 is a recent addition to the current drilling program and will be the last well drilled in the Phase 1 program. This location is an appraisal of the Na Sanun-1 well drilled in 1997 that flowed approximately 1,400 bbl/d from a fractured volcanic sill before watering out. POE-9 is located approximately 400 meters east and 150 meters up dip from Na Sanun-1, targeting a number of volcanic sills within structural closure. The prospect is deemed moderate risk and high impact by management. Building of the location is anticipated to commence this week with drilling expected to begin in early December.

Pan Orient is a Calgary, Alberta-based oil and gas exploration and production company with operations currently located onshore Thailand and in Western Canada.

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