PanOcean to Spend $164 Million in 2006 to Double Production

Pan-Ocean Energy Corporation's Board of Directors has approved a $164 million exploration and development capital program for 2006 (all amounts in US$). This plan is designed to more than double 2005 production. Approximately 20% of the budget is allocated to exploration activity. The 2006 program contemplates the following key activities:

    -   drilling of five exploratory wells, four onshore and one offshore;

    -   drilling and completion of 20 development wells -- 18 onshore and two
        offshore; a gas injection well and a water disposal well;

    -   installation of a Central Production Facility at Tsiengui;

    -   the installation of a 5,000 bopd Early Production Facility on Koula
        with the Awoun partners; and

    -   completion of a wholly-owned and operated 29 km 10" export pipeline,
        as well as a pump station that together will be used to transport
        crude oil from the Tsiengui/Obangue/Awoun area.

The program includes the costs for the installation of a production platform at Avouma and the drilling of two Avouma development wells.

The Company is currently drilling the first of 15 additional development wells on its Tsiengui field. Construction of the 29 km 10" export pipeline from Tsiengui to Coucal is progressing as planned, with the pipeline expected to be commissioned by July 2006.

PanOcean is an international energy company engaged in the exploration, production and marketing of oil and natural gas. PanOcean's asset portfolio is focused on conventional light oil production in Gabon, West Africa. PanOcean's Class B Subordinate Voting Shares and Class A Common Shares are listed for trading on Toronto Stock Exchange under the symbols POC.SV.B and POC.MV.A respectively. PanOcean has 24,697,511 Class A and Class B Shares outstanding. Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.