CALGARY, ALBERTA – Feb. 23, 2009
Pan Orient Energy Corp. (TSX VENTURE: POE), on behalf of its 53.3% owned subsidiary Andora Energy Corporation, is pleased to release its December 31, 2008 National Instrument 51-101 compliant reserves appraisal for its heavy oil project at Sawn Lake Alberta, Canada, as evaluated by DeGolyer and MacNaughton Canada Limited.
Highlights:
– Net present value (discounted 10% before tax – forecast prices) of $1.463 billion ($17.11 per Pan Orient share for its net 53.3% interest in Andora) attributed to Sawn Lake probable reserves, an increase of 98% from $737 million in prior year.
– Net present value (discounted 10% before tax – forecast prices) of $2.45 billion ($28.66 per Pan Orient share for its net 53.3% interest in Andora) attributed to Andora’s Sawn Lake probable + possible reserves.
– Probable Sawn Lake recoverable reserves of 131.8 million barrels of oil, a decrease of 0.5% from 132.6 million barrels in prior year.
– Andora’s Sawn Lake gross probable + possible recoverable reserves of 235 million barrels of oil, a decrease of 14% from 274 million barrels in prior year. This downward revision reflects the removal of Andora’s 10% non-operated working interest of Sawn Lake West from the reserve report as based on this past winters drilling results.
– Andora is awaiting approval of its SAG-D demonstration project application which was submitted to the Alberta Government in April 2008.
Pan Orient, through Andora, currently holds a 100% operated working interest in 16 sections of Sawn Lake oil sand leases (“South Block”) plus an additional 50% operated working interest in oil sand leases and related assets covering 12 sections of land (“Central Block”). Andora also owns a 10% working interest in 51 sections (10 sections in the Central Block and 41 sections in a Northern Block) with the Central and Northern Blocks located immediately north of, and adjacent to the southern 100% owned lands. Additionally, as outlined in a December 4, 2007, press release, Andora owns a gross overriding royalty (“GORR”) of 3% of a 40% working interest on the 12 sections in the Central Block that it already has a 50% interest in, plus an additional 3% GORR of a 80% working interest in a remaining 24.5 sections that it has a 10% working interest of.
Andora Reserves - Sawn Lake, Alberta
SUMMARY OF CRUDE RESERVES AS OF DECEMBER 31, 2008, AS PROVIDED BY
DEGOLYER AND MACNAUGHTON CANADA LIMITED
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Andora Gross Pan Orient Gross
Marketable Reserves 100% (mbbl) 53.3% (mbbl)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Proved - -
Probable 131,806 70,253
----------------------------------------------------------------------------
Total Proved plus Probable 131,806 70,253
Total Possible 103,522 55,177
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Proved plus Probable plus Possible 235,328 125,430
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SUMMARY OF NET PRESENT VALUES AS OF DECEMBER 31, 2008, AS PROVIDED BY
DEGOLYER AND MACNAUGHTON CANADA LIMITED
(FORECAST PRICES) - ANDORA 100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Present values - $thousands Undisc. 5% 10%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Proved - - -
Probable 3,127,000 2,134,000 1,463,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Proved plus Probable (Before Taxes) 3,127,000 2,134,000 1,463,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Proved plus Probable (After Taxes) 2,070,000 1,376,000 915,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SUMMARY OF NET PRESENT VALUES AS OF JANUARY 1, 2008, AS PROVIDED BY DEGOLYER
AND MACNAUGHTON CANADA LIMITED
(FORECAST PRICES) - PAN ORIENT 53.3%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Present values - $thousands Undisc. 5% 10%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Proved - - -
Probable 1,666,691 1,137,422 779,779
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Proved plus Probable (Before Taxes) 1,666,691 1,137,422 779,779
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Proved plus Probable (After Taxes) 1,103,310 733,408 487,695
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains National Instrument 51-101 compliant reserve values. These reserve values may not represent fair market value. This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as “expect”, “believe”, “estimate”, “should”, “anticipate” and “potential” or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
45,568,366 common shares issued
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Pan Orient Energy Corp.
Jeff Chisholm
President and CEO
(403) 294-1770
or
Pan Orient Energy Corp.
Jason Bednar
Vice President Finance and CFO
(403) 294-1770
Email: jason@panorient.ca
