PanOcean's Total Production Exceeds 10,000 bpd

Pan-Ocean Energy reports that its total production has now exceeded 10,000 barrels of oil per day ("bopd"). The recently completed offshore well, ET-5H, has been stabilized at approximately 6,500 bopd (2,040 bopd net PanOcean) and the onshore Obangue well, NZOB- 2aH, has been successfully restarted with gas lift at approximately 400 bopd (370 bopd net PanOcean). Current Company production is approximately 10,500 bopd.

ET-5H, the fourth offshore well in the Etame Field (PanOcean 31.36%), was brought onstream on 23 August at an initial rate of 6,400 bopd through a 48/64" choke and has stabilised at approximately 6,500 bopd. Subject to the results of this initial flow period, the Etame partners plan to increase the production of the well and expect rates in excess of 7,500 bopd. At current production levels, this is expected to bring total Etame production to over 22,500 bopd (7,060 bopd net PanOcean).

Following an Etame partner meeting earlier this week, PanOcean is proceeding with its partners in the permit to prepare an integrated development plan for the Etame Permit. The plan will incorporate further development of the main Etame Field, the Ebouri discovery 10km north of the main field, and the recently announced Avouma discovery 17km south of the main field.

PanOcean owns a 31.36% working interest the Etame Field, with the other partners VAALCO Energy, Inc. (AMEX: EGY - 28.07% and operator), Sasol (NYSE: SSL - 27.75%), Sojitz Etame Limited (2.98%), PetroEnergy Resources Corp. (2.34%) and Tullow Oil plc (LN: TLN - 7.5%).

Onshore Gabon, AWOKOU-1, the first exploration well on the Shell-operated Awoun permit (50% PanOcean) spudded on 19 August and is expected to reach total depth by early September. Targets for AWOKOU-1 are the Gamba and Upper Dentale sandstones. AWOKOU-1 is the first of two commitment exploration wells on the Awoun Permit.