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Production Update

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.