Pacific Asia China Energy Inc. ("PACE") announces favorable preliminary results on the fourth and fifth of six test wells, MY-02 and ZY02, in the Mayi West Block, which covers about 138 Km2 and is situated in the Guizhou Baotian-Qingshan CBM main permit area of 970 Km2.

The Company is very pleased with these preliminary results which are similar to those previously achieved by the Coal Geology Exploration Bureau of Guizhou Province.

In early 2006, Sproule International Ltd., a geological and petroleum engineering consulting firm, conducted a study of the discovered CBM resources for the Boatian-Qingshan property in Guizhou. The study estimated The Most Likely Case volume estimate for three target coal seams in the Longtan Formation (seams No.17-1, 17-2 and 19) was 5.2 Tcf and having an aggregate thickness of 9.2 meters (30 feet) distributed over the entire permit area.

The final well (ZY-03) in this initial exploration program in the Mayi block is expected to be completed within two weeks. A pilot production program is expected to begin in early 2007. In addition, exploration will continue in another block of the Baotian-Qingshan property.

Source:佚名