Pacific Asia Petroleum's Hong Kong Subsidiary Kicks Off EOR Operations

Pacific Asia Petroleum's Hong Kong subsidiary, Pacific Asia Petroleum Energy Limited ("PAPE"), along with its China affiliate, Inner Mongolia Sunrise Petroleum Co. Ltd. ("Sunrise"), commenced the generation of revenues and began operations on its first well in the Liaoning Province of China where it is conducting operations pursuant to its enhanced oil recovery and production ("EORP") business. It is planned that such operations will continue successively on more wells pursuant to contractual rights the Company has with respect to oil fields in the Liaoning Province.

Commenting on this achievement, Frank C. Ingriselli, President & CEO of Pacific Asia Petroleum, Inc., said, "This is a significant milestone for our Company that will generate cash flow and revenues in the 3rd Quarter of 2009."

This is earlier than the Company had previously estimated and announced.

Mr. Ingriselli continued, "This achievement helps to validate our newly acquired EORP technology and delivers on our business plan of generating revenues and cash flow this year. We plan to build out EORP into a significant business that will provide positive cash flow, earnings and grow shareholder value. We are targeting hundreds of wells to add to our production portfolio and are aggressively pursuing such opportunities not only in the China market, but elsewhere in Asia."

It is estimated that China has over 20 billion barrels of unrecovered high viscosity and high pour point crude oil resources that could benefit from the application of the Company's EORP technology.