Pan Orient Energy updates Indonesian ops

The following is an edited excerpt taken from Pan Orient Energy Corp.?s Second Quarter 2010 report released on Thursday. (ed)

Batu Gajah PSC, Onshore South Sumatra (POE 90% Working Interest and Operator)

A 500 kilometer 2D seismic program in the Batu Gajah Production Sharing Contract has been competed and the tendering for all drilling and related services will be completed by the second week of September 2010. Surface land acquisition for two locations has been finalized with Ministry of Forestry and approval for a third location is pending and expected in early September. With the delay in Ministry of Forestry approval for one drilling location and the two re-tendering processes that were required for various drilling services, Pan Orient is targeting a November 2010 commencement of drilling for the first well of the three well program. Drilling time per well is estimated to be 14 days with drilling of the three wells completed by year end. Outstanding Ministry of Forestry approval for one of the three drilling locations remains the most significant potential delay factor outside of the Company's control.

Citarum PSC, Onshore West Java (POE 69% Working Interest and Operator)

The 2D seismic program over the Citarum Production Sharing Contract was completed in July 2010. Two locations have been defined with the exact position of a third location subject to the final interpretation of the last, eastern portion of the 2D seismic program. Drilling of the three well program at Citarum is anticipated to commence towards the end of the first quarter of 2011. (end of excerpt)