Pan Orient to Begin Na Sanun East Appraisal Drilling Late July

The Na Sanun East (POE-9) multi-well appraisal drilling program in Thailand is anticipated to commence later this month. An approximately 110 square kilometer 3D seismic survey covering the northern half of Na Sanun East oil field and all of the Bo Rang structure has been ongoing for the past month with completion expected in mid July.

The Na Sanun-1RD ("NS-1RD") has been drilled to a total depth of 990 meters, penetrating the top 30 meters of the first of five potential volcanic reservoirs. Flow testing of this volcanic zone has so far resulted in oil production of approximately 20 barrels of oil per day with a water cut of 76%. The well has been cleaning up over the last three days with pressure, measured at surface, increasing. The well will continue to be pumped and monitored for further decline in water cut and improvement in oil flow. If oil production can not be improved from the current zone, NS-1RD will be deepened to evaluate the four additional volcanic zones, two of which resulted in lost circulation (good inferred reservoir development) while being drilled in the original NS-1 well, 16 meters away.


The L33-D exploration well is currently drilling ahead towards a projected total depth of approximately 1,200 meters. L33-D is the first well to be drilled by the joint venture in the northern exploration permit L33/43. The well is located approximately 1 km northwest of Wichian Buri village and approximately 6 km northwest and distinctly separate from the Wichian Buri Oil Field. The L33-D structure is an approximately 4 square kilometer structural closure with all sandstones present below a depth of 500 meters considered prospective oil targets and strong amplitudes on seismic, at approximately 1,100 meters, are interpreted to indicate the presence of volcanic intervals equivalent to those encountered in the Na Sanun area.

Three additional prospects have been identified in concession L33/43 and will be drilled during 2007.

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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