Royal Dutch Shell Group .com Shell and PanOcean discover oil in their Awoun Permit Gabon, West Africa(


Posted 5 October 2004


ST. HELIER, Jersey, Oct. 4 /PRNewswire-FirstCall/ - Shell Gabon and its co-venturer Pan-Ocean Energy Corporation Limited ("PanOcean", or the "Company") announced 7 September a light oil discovery in the exploration well AWOKOU-1.


Further data analysis indicates a 29 meter oil column in the Gamba sandstone with no gas cap in the drilled formation. Shell Gabon S.A. and PanOcean, equal partners in the Koula discovery on the Awoun concession, feel now encouraged to consider further appraisal and development activities.


The well is located on the Koula prospect in the Awoun Permit situated eight kilometres to the north of the Total/Shell producing Avocette field and five kilometres to the northwest of the PanOcean's producing Obangue field onshore Gabon, West Africa. Shell, the operator, and PanOcean each have a 50% interest in the well prior to the government 20% back-in.


The AWOKOU-1 exploration well was successfully drilled and logged with the Simpler 101 rig to a total depth of 1,926 meters. Based on the data collected thus far, the AWOKOU-1 well has come in close to prognosis and found oil in thick Gamba sandstone. AWOKOU-1 is the first well drilled as part of a two-well exploration campaign in the permit and is currently being suspended at the 9 5/8" casing. The second exploration well (AWODAM-1) will be drilled in October 2004, some three kilometres to the southwest of the AWOKOU-1 discovery.


PanOcean is an international energy company engaged in the exploration, production and marketing of oil and natural gas. PanOcean's asset portfolio is focused on conventional light oil production in Gabon, West Africa. PanOcean's Class B Subordinate Voting Shares and Class A Common Shares are listed for trading on Toronto Stock Exchange under the symbols POC.B and POC.A respectively. PanOcean has 21,137,239 Class A and Class B Shares outstanding. Toronto Stock Exchange neither approves nor disapproves the information contained in this news release. For further information on PanOcean, please visit the Company's web site at .


Forward Looking Statements


This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond PanOcean's control, including: the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore PanOcean's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that PanOcean will derive therefrom. All statements included in this press release that address activities, events or developments that PanOcean expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete well. These statements are based on assumptions made by PanOcean based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.


Source: Pan-Ocean Energy Corporation Limited

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