Pan Orient Increases '08 Exit Production Rate by 83%

Pan Orient's Thailand production exited 2007 at 13,446 bopd gross (8,067 bopd net to Pan Orient). This is below the year end 2008 exit target of 15,000 bopd (gross), 9,000 bopd (net), due mainly to NSE-D2ST1 once again encountering the gas cap, and a year end focus on potential new reserves drilling at NSE-E2 and Bo Rang (L44-V) as opposed to further NSE central development drilling.

At year end, two wells awaited testing (NSE-E2 and L44-V), that in the success case would result in incremental production. The year end exit production rate of 8,067 bopd, net to Pan Orient, was an increase of 3,657 bopd, or 83%, over the 2007 exit rate of 4,410 bopd. The Company continues to focus on production growth in combination with establishing new reserves that would enable production to be maintained and grow through 2009.