Pan-Orient Energy Wins Some, Loses Some in Thailand

Pan-Orient Energy reports that the WB-1 (Deep) exploration well has been abandoned after testing small amounts of natural gas with approximately 750 barrels of water per day from an open hole volcanic interval between approximately 1,500 to 1,590 meters. A second, shallower, 10m thick volcanic at approximately 1,200 meters that had oil shows, but no lost circulation while drilling, was perforated and found tight. WB-1 (Deep) will be completed as a future water disposal well.

In the latter half of 2008 the Company plans to drill Wichian Buri F sandstone development wells north of WB-1 (Deep) and will once again target the same potential volcanic reservoirs in a much structurally higher position.

The moderate risk, high impact L44-R exploration well is located approximately 10.5 kms south of the producing NSE oilfield and within the main volcanic reservoir play fairway, is anticipated to start drilling in 5 days. The well is targeting an approximately 7 square km structural closure with multiple potential volcanic reservoir targets between 800 to 1,300 meters. Drilling is anticipated to take 17-24 days.

Further to the December 12, 2007, news release, production has grown as anticipated and is currently approximately 7,350 bopd gross (4,410 bopd net to Pan Orient) with a current fleet of 41 tankers transporting the oil to the Bangkok refinery. Six additional tankers are anticipated to become available shortly, which will increase production to approximately 8,450 bopd gross (5,070 bopd net) and further tanker capacity has been arranged which will permit production to increase to the current field production capacity, from existing wells, of approximately 10,000 bopd gross (6,000 bopd net) by late February to early March.