Pan Orient Energy Corp.: POE-9A Flows 682 BOPDCALGARY,...

Pan Orient Energy Corp.: POE-9A Flows 682 BOPD
CALGARY, ALBERTA--(Marketwire - May 6, 2008) -

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Pan Orient Energy Corp. (TSX VENTURE:POE) (45,391,442 common shares issued)

POE-9A Appraisal Well (60% WI & Operator)

The POE-9A vertical appraisal well, located approximately 130 meters south of the NSE discovery well POE-9 is producing, on pump, from the main volcanic zone at rates of approximately 682 bopd, with a 6.5% BS&W, as the well continues to clean up. Based on the fluid levels recorded in the well bore, the current rate is believed to be restricted by the slim hole casing (4.5") design of the well. An earlier test of a deeper volcanic zone failed to produce hydrocarbons at commercial rates.

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

The L44H-D2 deviated appraisal well is currently logging after reaching a total depth of 2,357 meters measured depth ("MD"), 2,103 meters true vertical depth ("TVD").

In addition to the main volcanic zone, five deeper, never before tested volcanic intervals have been encountered at 1,079, 1,154, 1,483, 1,698 and 1,824 meters MD with measured thicknesses of 21, 6, 27, 62 and 26 meters respectively. Oil shows were observed while drilling at depths of 1,080-1,100m, 1,505-1,510m and 1,845-1,850m. Upon the completion of logging, it is anticipated testing will be conducted on up to four zones and take approximately 21 days to completion, at which time results will be announced. Unlike POE-9A, which is in the southern fault compartment of NSE and was drilled to only one deeper volcanic horizon, L44H-D2 is in the central fault compartment of NSE and is planned to test multiple deeper volcanic zones.

NS3-D1 Side Track Appraisal Well (60% WI & Operator)

The NS3-D1 high angle deviated/horizontal side track is currently drilling ahead at a measured depth of 928 meters (848 meters TVD) within a volcanic tuff above the main volcanic target zone. Lost circulation of approximately 200bbls/hr has been encountered in the volcanic tuffs that sit immediately above the main volcanic target zone.

NS3-D1 ST will deviate north of the original NS3-D1 well bore and is projected to drill an approximately 200 meter horizontal section of the main target volcanic. As part of this operation, the original NS3-D1 well bore has been abandoned and will be replaced by this new, horizontal side track.

Drilling is anticipated to be completed in approximately 12 days.

NS8-D1 Side Track Appraisal Well (60% WI & Operator)

Upon the completion of L44H-D2, the Aztec rig #14 will move to the NS8-D1 well location where, in exactly the same fashion as NS3-D1, a horizontal side track will be drilled utilizing the existing well bore.

Operations Update

Production is approximately 7,200 bopd (gross) with the NS3-D1 and NS8-D1 wells shut-in while horizontal side track operations are either underway, or about to be underway.

Environmental approval has now been received for 32 drilling locations at Na Sanun East and Wichian Buri. Construction is currently underway on location NSE9-G, located at the crest of the NSE central fault compartment where up to three horizontal wells are anticipated to be drilled from the same surface location, commencing in approximately 5 weeks. With the approval of the NSE development location in hand, production is anticipated to ramp up significantly over the coming three to six months.