Mr. Jeff Chisholm reports

PAN ORIENT ENERGY CORP. L53-DD1 THAILAND OIL DISCOVERY

Pan Orient Energy Corp.'s L53-DD1 exploration well has encountered an interpreted and combined 26 metres of net oil pay within three separate sandstone reservoirs between a true vertical depth of 960 metres to 1,125 metres. This interpretation was based on conventional open-hole wireline logs and hydrocarbon indications observed while drilling, and confirmed with postdrill pressure data and oil samples brought to surface from each of the zones. The oil is estimated to be approximately 28 degree API (American Petroleum Institute) gravity. The sandstone reservoirs are interpreted to be high quality based on wireline log interpretation and high mobility observed while acquiring the pressure data and oil samples across each zone.

Current plans are to immediately appraise the L53-DD1 discovery with the L53-DD2 well, which will commence drilling within the next five days and target the deepest two of the three reservoirs, in a position substantially up dip of the discovery well and to be drilled from the same well pad. The L53-DD1 discovery will not commence production until the completion of the L53-DD2 appraisal well due to limited well pad space. During the drilling of L53-DD2, government of Thailand approval will be sought for a 90-day production test of both wells.

L53-DD1 is a deviated exploration well drilled to a measured depth of 1,373 metres (1,323 metres true vertical depth) located in the northernmost portion of the Concession L53 exploration reserve area, approximately 28 kilometres north of any existing producing wells within Concession L53 and approximately five kilometres south of the U-Thong oil field, which is operated by PTT Exploration and Production Public Company Ltd., located in the adjacent concession.

The L53-DD1 exploration well will fulfill the $600,000 (U.S.) minimum annual exploration expenditure that is required to retain the approximately 214 square kilometres of exploration reserve area, which is all of the remaining area of the original Concession 53, outside of the existing four production licences.

Moving forward, Concession L53 activities will include the drilling of the L53-DD2 appraisal well, applications for 90-day production tests for both L53-DD1 and L53-DD2, compilation and submission of a production licence area application that will encompass the discovery area, and generation of the technical information to be provided to Pan Orient Energy's reserve evaluators for inclusion of the L53-DD1 discovery into the year-end 2018 independent reserves evaluation. Past experience has typically seen production licence government approval within three to five months of submission, at which time long-term (not subject to 90-day production test) production can commence. In addition, work is currently under way, utilizing the L53-DD1 well results to better define the hydrocarbon potential in the immediate vicinity of the L53-DD1 oil discovery that would form the basis for any potential future exploration drilling in the area.

About Pan Orient Energy Corp.

Pan Orient Energy is a Calgary, Alta.,-based oil and gas exploration and production company with operations currently located in Thailand, Indonesia and Western Canada.

We seek Safe Harbor.