Pan Orient Offers Update on Thai Drilling Projects

L44H-D2 Exploration/Appraisal Well Testing (60% WI & Operator)

The L44H-D2 deviated appraisal well, in addition to the main volcanic zone, penetrated five deeper never before tested volcanic intervals. Testing has now been completed on the four most prospective deeper volcanic zones resulting in the failure to yield commercial hydrocarbons.

Of particular note, L44H-D1, the highest flow rate well ever drilled onshore Thailand and located off the crest of the NSE central fault compartment, was put on production at a rate of approximately 3,500 bopd six months ago and continues to produce at approximately 3,300 bopd (representing a decline rate of approximately 6%) with a water cut of 0.01% throughout its history. Cumulative production for this well alone is over 600,000 barrels of oil.

The last test, within the main producing volcanic zone, through casing perforations (whereas the other NSE wells are produced optimally as open hole wells) between 840 and 860 meters MD has resulted in oil production at a restricted rate of approximately 600 bopd.

NS5-D1ST Horizontal Development Well (60% WI & Operator)

The NS5-D1ST horizontal development well, located in the southern most, down dip portion of the NSE Central fault compartment had reached a total measured depth of 1,406 meters (872 meters TVD) within the target volcanic reservoir zone. Testing has now been underway for approximately 4 days with the well on low pump setting and still in clean up stage, after the loss of 7,200 barrels of mainly fresh water pumped into the formation during drilling operations. Oil rates have been variable between 85-140 bopd with 60 to 142 barrels of fresh water.

NS5-D1ST is the last of two wells (the other being NS3-D1ST announced on May 27) to be drilled on the structurally low flanks of the Na Sanun East oil field. NS3-D1ST and NS5-D1ST were the only accessible locations on NSE prior to the granting of recently received environmental approval for the drilling of an additional 19 development and appraisal wells within the area of the NSE field. Drilling of these new locations is about to commence, as detailed later in this release.

L33-3 Exploration Well (60% WI & Operator)

The L33-3 exploration well, located on concession L33, was drilled to a total true vertical depth of approximately 1,084 meters encountering a potential volcanic reservoir between 960 and 1,084 meters. Lost circulation was encountered at 960, 1,021, 1,035, 1,046, 1,060, 1,064 and 1,082 meters at rates between 4.6 and 120 barrels per hour. Similar to successful POE-9, NS6-D1A and L44-R wells, no oil shows were encountered while drilling the potential reservoir section.

L33-3 is a high risk stratigraphic test well drilled on the basis of one 2D seismic line within the untested Khon Khwang graben, located 33 kilometers north of the nearest proven production at Wichian Buri. The objective of the well is to evaluate the source rock and reservoir potential within the Khon Khwang sub basin. Validation of the source rock presence and maturity would approximately double the region of hydrocarbon potential within concessions L33 and L44 and result in an extensive 2D seismic program over this large area in July 2008.

Testing is anticipated to be completed within 10 to 14 days.

NS9-H1 Horizontal Appraisal Well (60% WI & Operator)

NS9-H1, located within the Na Sanun oil field (due west and distinctly separate from NSE) and within the SW1A contract area, is currently drilling ahead at a true vertical depth of 433 meters towards the horizontal kick off point above the main volcanic reservoir objective predicted at approximately 935 meters TVD. The well is planned to intersect the target at a point approximately 250 meters northeast of the NS-1 well and 20 to 25 meters structural higher. Drilling is anticipated to be completed within 14 days.

NSE-A1 Appraisal Well (60% WI & Operator)

The NSE-A1 appraisal well will start drilling in approximately 7 days, immediately after casing has been set on L33-3 and the rig moved on to location. The well is located at the crest of the NSE Central fault compartment, offsetting the L44H-D1 well which is currently producing at 3,300 bopd. The drill pad consists of 4 drilling cellars with the first well planned to be drilled vertically and to core the upper section of the approximately 180 meter thick main volcanic reservoir. An additional three deviated/horizontal wells will be drilled in succession immediately thereafter.