Pan Orient updates Indonesian ops

The following is an excerpt taken from quarterly report of Canadian firm Pan Orient Energy Corp released on Friday on Indonesia operations update. (ed)

The Company continues to be very active in Indonesia with seismic programs, building the organization and preparation for 2010 drilling in order to set the foundation for the next phase of growth of the company. In addition to the three Pan Orient operated concessions onshore Java and Sumatra, the Company continues to focus on the evaluation of additional asset opportunities with a focus on producing assets that possess material exploration upside to compliment the existing portfolio of low to high risk exploration prospects and establish Indonesia as a core asset for Pan Orient.

Citarum PSC (1,991 net Km2 - Onshore Java - 69% Working Interest & Operator)

The acquisition of an initial 750 km 2D seismic program continues with approximately 1/3 of the data acquired to date and completion expected near the end of 2009 to early 2010. Data quality has been superior to that acquired in the adjacent acreage by previous operators and a number of relatively shallow (approximately 1,700m) leads have been identified on the data that has been processed to date. Exploration drilling of up to four wells is tentatively scheduled to commence the second half of 2010, upon the completion of drilling in the POE operated Batu Gajah PSC.

Batu Gajah PSC (3,590 net Km2 - Onshore Sumatra - 90% Working Interest & Operator)

The seismic crew for the acquisition of 500 kilometers of 2D data has been mobilized to the concession and will commence first shots in September with survey completion anticipated near year end 2009. The Company plans on drilling up to four exploration wells commencing in the first half of 2010. At least one of these wells will be timed subject to the receipt of 3D seismic data that has been recently acquired by an operator of the adjacent Jabung PSC. This operator is obligated to provide, at no cost to Pan Orient, approximately 50 square kilometers of 3D data that was acquired over the Batu Gajah PSC. This 3D data is part of two much larger 3D surveys acquired in adjacent lands over recent discoveries made by this operator.

South CPP PSC (4,026 net Km2 - Onshore Sumatra - 90% Working Interest & Operator)

G & G activities currently underway include the reprocessing of existing 2D seismic data with no drilling planned for South CPP until 2012.(end of excerpt)