Pan Orient Provides Update on Heavy Oil Demonstration Project at Sawn Lake, Alberta by Andora Energy Corporation

Pan Orient Energy Corp. (TSX VENTURE:POE), on behalf of its 71.8% owned
subsidiary Andora Energy Corporation ("Andora"), is pleased to provide an update
on Andora's Steam Assisted Gravity Drainage (SAGD) oil sands project at Sawn
Lake in the Peace River oil sands area of Alberta, Canada.


Sawn Lake, Alberta Oil Sands Project



--  The SAGD project at Sawn Lake is in the pre-production stage. Andora
    holds working interests in 88 continuous sections of undeveloped heavy
    oilsands leases. Andora is the operator with a 100% interest in the 16
    section South Block, operator with a 50% interest in the 12 section
    Central Block (and holds an additional 3% gross overriding royalty on a
    non-owned 40% working interest), operator with a 10% interest in 9
    sections in the North Block, and holds 10% in 51 non-operated sections
    of the North Block. Sawn Lake is in an area with established
    infrastructure and year-round access. 
--  The oil sands project at Sawn Lake Alberta as at December 31, 2012 was
    evaluated by Sproule Unconventional Limited ("Sproule Report") based on
    exploitation in the Blue Sky zone using SAGD. Sawn Lake "Best Case"
    contingent resources evaluated as 214 million barrels of bitumen
    attributed to Andora's working interests, or 154 million barrels
    attributed to the 71.8% ownership interest of Pan Orient in Andora, were
    assigned largely in the South and Central Blocks of Sawn Lake where
    Andora is the operator of these lands. Contingent resources in the
    Sproule Report were assigned 138 million barrels to the Central Block
    (Andora operator and 50% interest), 74 million barrels to the South
    Block (Andora operator and 100% interest) and 2 million barrels in the
    North Block.
    Contingent resources are those quantities of petroleum estimated, as of
    a given date, to be potentially recoverable from known accumulations
    using established technology or technology under development, but which
    are not currently considered to be commercially recoverable due to one
    or more contingencies. The contingent resource volumes estimated in the
    Sproule Report are considered contingent until such time as commercial
    recovery has been demonstrated, regulatory approvals for commercial SAGD
    development have been obtained and the company has a firm commercial
    development plan and funding for the commercial development. Contingent
    Resources are further classified as "High", "Best" and "Low" in
    accordance with the level of certainty. 



Sawn Lake Demonstration Project Operated by Andora



--  Andora received Commercial Scheme Approval for a demonstration project
    at the Sawn Lake property in the Peace River Oil Sands Region under the
    Oil Sands Conservation Act from the Energy Resources Conservation Board
    (ERCB) and approval from the Government of Alberta under the
    Environmental Protection and Enhancement Act (EPEA). The demonstration
    project is located in the Central Block of Sawn Lake where Andora is the
    operator and holds a 50% working interest plus a 3% GORR" on a non-owned
    40% working interest. Geological studies of the Blue Sky zone indicate
    that this location has the thickest pay zones, at greater than 20
    meters, with high horizontal and vertical permeability. The goal of the
    demonstration project is to determine the steam / oil ratio and oil
    production productivity at this location in the Sawn Lake reservoir. 
--  The demonstration project at 7- 30 -91-12W5M will start with a 2013
    phase consisting of one SAGD well pair, a facility for steam generation,
    water handling and oil treating, and water source and disposal
    facilities with an estimated cost of $24.1 million. The wells will be
    drilled to a depth of approximately 650 meters and have a horizontal
    length of 750 meters. Work is proceeding on site preparation, purchase
    of components for the facility, pipeline installation and preparation
    for drilling. It is expected that the horizontal well pair will be
    drilling in the second half of September and steam operations commencing
    in early December 2013. Oil production is anticipated in the first
    quarter of 2014. 
--  Our joint venture partners in the demonstration project have now
    provided notice of their election to participate in the demonstration
    project and have taken steps to secure funding for their share of the
    project. As part of the arrangement for the demonstration project,
    Andora is allowing our joint venture partners to repurchase the 3% gross
    overriding royalty on their 40% working interest in the 12 sections of
    the Central Block for $2.8 million, under certain terms and conditions. 
--  The demonstration project will now proceed with Andora as operator with
    a 50% working interest and a 50% working interest held by non-operators.
    Andora's share of the 2013 phase of the demonstration project is
    expected to be $12.1 million. To June 30, 2013 Andora has invested
    approximately $5.5 million in the demonstration project, with $4.5
    million in the period of January to June 2013. 
--  Andora is well funded for the demonstration project as a result of the
    $25 million rights offering by Andora in August 2012, at which time Pan
    Orient Energy Corp. provided funding of $24.7 million and increased its
    ownership of Andora to 71.8%. At June 30, 2013 Andora had $20.3 million
    in cash. Additional investment in the demonstration project in 2014 is
    dependent upon the results of the first SAGD well pair drilled in 2013. 
--  Andora is a 71.8% owned subsidiary of Pan Orient and the cash balances,
    capital expenditures and operations of Andora are reported as part of
    Pan Orient. 



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.


This news release contains forward-looking information. Forward-looking
information is generally identifiable by the terminology used, such as "expect",
"believe", "estimate", "should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release includes, but is not
limited to, references to: well drilling programs and drilling plans, estimates
of potentially recoverable resources, and information on future production and
project start-ups. By their very nature, the forward-looking statements
contained in this news release require Pan Orient and its management to make
assumptions that may not materialize or that may not be accurate. The
forward-looking information contained in this news release is subject to known
and unknown risks and uncertainties and other factors, which could cause actual
results, expectations, achievements or performance to differ materially,
including without limitation: imprecision of resource estimates and estimates of
recoverable quantities of oil, changes in project schedules, operating and
reservoir performance, the effects of weather and climate change, the results of
exploration and development drilling and related activities, demand for oil and
gas, commercial negotiations, participation by joint venture partners, other
technical and economic factors or revisions and other factors, many of which are
beyond the control of Pan Orient. Although Pan Orient believes that the
expectations reflected in its forward-looking statements are reasonable, it can
give no assurances that the expectations of any forward-looking statements will
prove to be correct.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Pan Orient Energy Corp.
Jeff Chisholm
President and CEO
(located in Bangkok, Thailand)
[e-mail]


Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
[phone]