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Pan-Ocean in Discussions Regarding Sale of Shares of PanAfrican

Source: www.gulfoilandgas.com 7/12/2006, Location: Africa

Pan-Ocean Energy Corporation Limited confirms that it has had preliminary discussions with parties in respect of potential transactions that could lead to a sale of the Companyís shares in its subsidiary, PanAfrican Energy Corporation Mauritius, which conducts business in Gabon.

These discussions are part of Pan-Oceanís ongoing commitment to enhance value for all shareholders, and there can be no assurances that any transaction will occur. The Company will update the market as circumstances warrant.

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