Pan Orient: Na Sanun-3 Testing Ongoing

Pan Orient Energy Corp. on Wednesday issued an update on its drilling operations in Thailand.

Na Sanun-3 Appraisal Well

Na Sanun-3, located on the southern most limb of the 3.1 square kilometer Na Sanun structure, was drilled and cased to a total depth of 1,060 meters on April 24, 2007. One volcanic reservoir interval approximately 77 meters thick was encountered at a depth of 961 meters with oil shows encountered over the upper 20 meters. Subsequent testing over a gross interval of approximately 62 meters (961 meters to 1023 meters) resulted in water production at rates of approximately 75 barrels per day with traces of oil and gas. Testing operations will continue and likely include the setting of a bridge plug in an attempt to isolate water which may be originating from the deepest set of perforations.

Na Sanun-4 Appraisal Well

Na Sanun-4, located approximately midway between Na Sanun-1 and Na Sanun-3 has set intermediate casing is currently drilling ahead at a depth of approximately 800 meters towards the first of 5 potential volcanic reservoir intervals, all of which are interpreted to be penetrated at the structurally highest point of the Na Sanun structure. A total depth of 1,400 meters is expected to be reached in approximately 8 days and include the cutting of one core.

"Pan Orient is in the early stages of exploring for and developing these complex volcanic reservoirs," said Jeff Chisholm, president and CEO of Pan Orient. "As we gather information from additional wells, including core, test data and FMI well bore image logs, we will be better able to plan, direct and predict the results of future wells. The results announced today from Na Sanun-3 have no bearing on the recently announced year end 2006 Gaffney Cline & Associates reserve report, nor the overall hydrocarbon potential of the distinctly separate POE-9 and Bo Rang-1 discoveries which will be appraised shortly as part of the current drilling campaign."

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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