Pan Orient Provides Thailand Operations Update

The NS5-D1 well is a deviated development well that has been drilled to a depth of 906 meters (true vertical depth ("TVD")), approximately 400 meters south of the L44-H well within the central fault compartment of the Na Sanun East ("NSE") oil field. The target volcanic reservoir was encountered at an approximate depth of 878 meters TVD. Severe lost circulation was encountered while drilling through the approximately 46 meters (measured thickness) of target volcanic reservoir with mud losses totaling approximately 6,222 bbls at loss rates of 165 to 206 bbls/hr. Conventional logs indicate the best potential volcanic reservoir section encountered to date.

Of particular note, a new reservoir zone approximately 60 meters in measured thickness (33 meters true vertical thickness) of what is interpreted as highly porous and fractured volcanic tuffs, was encountered above the main volcanic reservoir section detailed above. Severe lost circulation with high mud gas readings and live oil at surface was encountered over this interval at 1,100, 1122.5, 1130 and 1,149 meters (MD) with corresponding mud losses of 14, 105, 77 and 85 bbls/hr. From a volumetric standpoint this is significant and marks the second time severely fractured, very porous volcanic tuffs have been encountered. The first occurrence was at POE-9 where a highly fractured 25-meter thick tuff exhibiting severe lost circulation was encountered above the main volcanic target, but never tested.

Testing is anticipated to be completed within the next 7 to 10 days.

NS6-D1 (60% WI & Operator):

The Aztec #7 rig is currently sidetracking to a subsurface location approximately 70 meters south west of the original target after prematurely crossing the main bounding fault of the southern fault compartment, prior to encountering the main volcanic reservoir. Sidetracking operations are anticipated to take approximately 7 to 10 days.

L44H-D1 (60% WI & Operator):

The Aztec #14 rig is currently rigging up on deviated appraisal location L44H-D1, located within the central fault compartment of the NSE oilfield with a subsurface target located approximately 700 meters north of the vertically drilled L44-H well. Drilling is anticipated to commence within the next 3 days and take approximately 14-20 additional days to completion.