About us: Message from President & CEO

Welcome to Pacific Asia Petroleum, Inc.
In Ancient China there was a saying: “May you live in interesting times.”
We could all agree, that from a market perspective, the times are nothing if not interesting. But sometimes, the most difficult times are the most rewarding. They challenge us, they test us – they bring out the best in us.
As CEO of Pacific Asia Petroleum, Inc., I believe that 2009 will be the year our company will separate from the rest of the pack. From business strategy, to financials, to a world-class energy management team, we plan to deliver real results.

Real Expertise Across the Board
When building out the Pacific Asia management team, I recruited some of the best Super-Major talent in the industry. Talent that features a deep, rich and robust understanding of the personal relationships required, and the physical resources needed, to succeed in China.
Real Assets Upstream and Downstream


In Inner Mongolia, near Chifeng City, we are actively pursuing a production license for our 95% owned onshore oil field where potential oil resources may exceed 100 million barrels as estimated by Chifeng Zhongtong Oil & Natural Gas Company.
In Qiqihar City, we are finalizing due diligence pursuant to an agreement to acquire a minimum 35% interest in a field that contains 25 million barrels of oil as certified by the Chinese government. Twenty wells have already been drilled on this 8,400-acre field with 100 more scheduled over the next few years. Production licenses are in place and an independent report issued by LCH (Asia-Pacific) for one of the owners, sets the present value of the entire asset at US $460 million.
But oil production in known fields is only one part of our low-risk, high-return strategy. In the Shanxi Province, our 100% owned and operated coalbed methane and natural gas block covers more than 175,000 acres and features potential gross gas resources in excess of 3.8 trillion cubic feet, as estimated by the Chinese government. This block is located in one of the most prolific natural gas regions of China with major gas fields being developed in nearby areas by the Super- Majors including Shell.
Downstream, we are in the final stages of negotiation to acquire a 51% ownership stake of the Handan Gas Distribution Company. Delivering gas to more than 300,000 customers in the City of Handan, this acquisition is anticipated to generate real cash flow and real returns upon completion.
2009 and beyond. The Real Energy of China.
We start the New Year with NO DEBT and a powerful cash position to use for strategic acquisitions with a goal of delivering strong bookable reserves. We will continue to seek out low-risk, high-return projects with limited capital exposure and continue to build and leverage our partnerships with the Super-Majors and other strong, technologically experienced, cash-rich energy companies.
In a few short years, we have made tremendous progress in achieving our goal of becoming one of the most important foreign energy companies in China with a major stake in all areas of the value chain – upstream and downstream. Our work is not yet done and the road ahead is long, but we have accomplished a tremendous amount in a short period of time.
I look forward to sharing more news about our company’s new strategic moves in 2009.

Sincerely,

Frank C. Ingriselli
President and Chief Executive Officer