Pan Orient to Test Na Sanun-1RD Appraisal Well

Pan Orient Energy says the Na Sanun-1RD well, located 16 meters northeast of the original Na Sanun-1 well location (which was drilled in 1994 by a previous operator), has been drilled to a total depth of 990 meters. The top 30 meters of the first volcanic reservoir was penetrated with live oil observed at surface during the drilling of this section. The setting of a 7" casing string just above this target zone allowed mud weights to be significantly reduced in comparison to prior wells (8.7 ppg versus 10.5 ppg) and appears to have solved the lost circulation issues encountered in earlier wells. NS-1RD has been completed "bare foot" with no casing in the prospective zone and testing is anticipated to commence shortly.

The Aztec #7 rig is currently rigging up on location L33-D, in the southwest corner of Pan Orient's northern concession L33/43. L33-D is an exploration well that must be drilled prior to July 11, 2007 in order to fulfill L33 concession work program obligations. The Company's second rig, the Aztec rig #14, is currently on location L44-G undergoing the final stages of refurbishment that are anticipated to take an additional two to three weeks. L44-G is located 7.3 kms north of Pan Orient's POE-9 discovery well located on the Na Sanun East oil field structure.

The current L44 concession gross oil production is approximately 1,400 barrels of oil per day (840 barrels of oil per day net to Pan Orient). Further production gains are anticipated with the installation of a new tubing pump on POE-9 and an ongoing multi-rig exploration and appraisal drilling campaign that will include an additional 24 wells through the remainder of 2007.