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PanOcean Drills Duster Offshore Gabon
Pan-Ocean Energy Corporation Limited 9/12/2005
Pan-Ocean www.panoceanenergy.com  says operations at the Iris Iboga Marin-1 exploration well in the Sterling Energy operated Iris Marin Licence, offshore Gabon, have been completed. The well was drilled to a depth of 2,035 metres, reaching a sub-salt Gamba sandstone target where it penetrated over 30 metres of reservoir-quality sandstones which, however, were water bearing. The well is being plugged and abandoned as a dry hole. The Iris Marin permit is operated by Sterling Energy plc (20.57%), with partners PanOcean (25.71%), Petroleum Oil & Gas Corp. (Pty.) Ltd. of South Africa (22.86%), Premier Oil plc (18.00%), and Afren plc (12.86%).

The Company also announced that with increases in onshore production, total oil production remains at approximately 10,400 bopd notwithstanding an announcement by the operator of Etame that production from that field has been reduced to approximately 18,000 bopd (5,645 bopd net PanOcean) in order to maximize total oil recovery. The Company does not see an impact on oil-in-place and believes that the reduced production rate will be effective in maximizing the potential to fully recover the Etame reserves. Onshore Gabon, the Company has recently made progress in alleviating pipeline export restrictions, increasing throughput of Obangue and Tsiengui crude oil with the additional production onshore largely offsetting the reduction in Etame volumes.