NEWS RELEASE TRANSMITTED BY MARKETWIRE

FOR: Pan Orient Energy Corp.

TSX VENTURE SYMBOL: POE

July 17, 2008

NSE-A1 New Pool Discovery-1,245 BOPD

CALGARY, ALBERTA--(Marketwire - July 17, 2008) - Pan Orient Energy Corp. (TSX

VENTURE:POE) -

NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE

UNITED STATES.

NSE-A1 New Pool Discovery Well (60% WI & Operator)

The NSE-A1 well is currently free flowing from a newly discovered,

approximately 17 meter thick upper volcanic/volcanic clastic reservoir at a

restricted rate of approximately 1,245 bopd. Current water cut is approximately

0.5% and flowing tubing and casing head pressures are high at 210 psig @26/64"

choke and 340 psig @26/64" choke, respectively.

NSE-A1, located off the crest of the NSE Central fault compartment, was drilled

vertically and initially programmed to core the highest section of the

approximately 180 meter thick main volcanic reservoir. While drilling through a

previously untested upper zone at approximately 720 meters true vertical depth

(TVD), and above the main volcanic objective, very high mud gas readings and

strong oil shows resulted in the decision to cut a 20 meter core sample.

Initial well site analysis of this upper volcanic core indicated mixed

fractured volcanics and volcanic clastics with good oil shows throughout and

good visible matrix porosity in the volcanic clastic section. The decision was

made to TD the well and test this new upper volcanic, and not drill through to

the main volcanic interval.

NSE-A1 represents the first oil production within the Central and Southern

fault compartment from a zone other than the massive main volcanic. The full

areal extent of this upper zone will be evaluated as part of the current round

of NSE appraisal drilling; however, initial interpretation suggests this zone

may be equivalent to the oil producing zone in the L44G-D1 well located in the

Northern fault compartment approximately 3.5 kilometers to the north, the upper

volcanic zone at Bo Rang-1 that tested gas (at the crest of the structure)

approximately 7 kilometers to the northeast and a very thick (approximately 100

meter thick - gross) section at L44H-D1 that exhibited very good oil shows and

very high mud gas readings while drilling through an interbedded clastic and

volcanic section that was never logged due to borehole obstructions through

that section.

NSE-A3 Horizontal Appraisal Well (60% WI & Operator)

The NSE-A3 deviated appraisal well has been drilled to a total measured of 897

meters, penetrating the top of the main volcanic target at a depth of 755

meters TVD at a location approximately 420 meters due north of the NSE-A1

surface location. Drilling fluid losses of approximately 3,833 bbls were

observed while drilling 60 meters of horizontal section within the upper 6

meters of the approximately 180 meter thick volcanic. A formation micro imaging

(FMI) log, indicates intense fracturing of the target volcanic zone. The newly

discovered productive section at NSE-A1, detailed above, was also encountered,

and drilled though, in NSE-A3 exhibiting high mud gas readings and good oil

shows.

Testing of the main volcanic reservoir zone is anticipated to commence in 7

days with results to be announced shortly thereafter.

Aztec rig #14 is currently skidding over to the NSE-A4 well cellar where

another horizontal well will be drilled targeting the main volcanic reservoir

at a subsurface location approximately 400 meters northeast of the NSE-A drill

pad and near the crest of the NSE Central fault compartment.

L44-C Vertical Appraisal Well (60% WI & Operator)

The L44-C vertical appraisal well is currently drilling ahead, utilizing the

second Aztec drilling rig Pan orient has under long term contract, at a depth

of 370 meters towards multi-zone objectives within the F and G sandstones and

deeper "WB-1" volcanic at a location 1.15 kilometers north of the POE-6 oil

discovery and within the POE-6 fault compartment. The deeper volcanic objective

is interpreted to be the same as that encountered at WB-1 "Deep" but situated

in a position approximately 250 meters structurally higher.

L44-C is part of a multi-well appraisal program that is intended to define the

potential of sandstone and volcanic reservoir targets in the up dip portion of

the POE-6 and Wichian Buri fault compartments for future vertical and

horizontal infill drilling.

L44-C drilling is anticipated to be completed within 14 days.

L33-3 Exploration Well (60% WI & Operator)

The L33-3 exploration well, located on concession L33 on the basis of one 2D

seismic line within the untested Khon Khwang graben, located 33 kilometers

north of the nearest proven production at Wichian Buri was drilled to a depth

of 1,084 meters TVD and abandoned after failing to produce hydrocarbons at

commercial rates.

There still remain two additional prospects unrelated to L33-3 within the

southernmost portion of the L33 concession. Drilling pads have been completed

and drilling is planned to take place later in 2008 at these two locations.

NS9-H1 Horizontal Appraisal Well (60% WI & Operator)

NS9-H1, located within the Na Sanun oil field (due west and a distinctly

separate field from NSE) has been abandoned after failing to encounter the main

reservoir objective. A structurally higher volcanic zone encountered to the

north of the main volcanic zero edge, though exhibiting oil shows, failed to

produce hydrocarbons at commercial rates.

Summary

Full scale development of the NSE field and adjacent areas of resource

potential, with up to 19 wells, has now commenced. Production is anticipated to

ramp up significantly over the coming months as a result of this drilling

program. Early drilling results have been exceptionally encouraging with an

indicated new pool discovery at NSE-A1, which highlights the resource potential

that Pan Orient believes exists within the greater NSE region.

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.