Oyo Oilfield Begins Production

Pacific Asia Petroleum, Inc. (NYSE Amex: PAP), a US-based energy company engaged in the development, production and distribution of oil and gas, announced today that production has commenced at the Oyo Oilfield, as reported today by Allied Energy Plc., a subsidiary of CAMAC, and Nigerian Agip Exploration, an affiliate of Italy’s ENI S.p.A.

The Oyo Oilfield is located in the deep offshore Niger Delta, about 120 kilometers off the Nigerian coast. The field has the ability to initially produce at a rate of approximately 25,000 barrels of oil per day from two subsea wells (in a water depth of 400 meters) which are connected to the Armada Perdana FPSO (Floating Production Storage and Offloading facility). The FPSO has a treatment capacity of 40,000 barrels of liquids per day, and is capable of storing up to 1 million barrels of crude oil.

Pacific Asia Petroleum, Inc. (the “Company”) announced on November 23, 2009 that it signed a Purchase and Sale Agreement with CAMAC and certain of its affiliates to acquire all of Allied Energy and CAMAC’s interest in the Oyo Oilfield.

Frank C. Ingriselli, President and Chief Executive Officer of Pacific Asia Petroleum, said: “We are excited that production has successfully begun at the Oyo Oilfield and we look forward to completing our transaction to acquire the CAMAC interest in this offshore energy asset. Once concluded, this transaction is expected to deliver substantial revenues and earnings to our Company well into the future.”

For more information on the Oyo Oilfield, please visit CAMAC’s official website at: www.camac.com or ENI S.p.A’s official website at http://www.eni.com/en_IT/home.html.

For more information on Pacific Asia Petroleum, please visit www.papetroleum.com.

About Pacific Asia Petroleum, Inc.

Pacific Asia Petroleum, Inc. (NYSE Amex: PAP) is a U.S. publicly-traded energy company engaged in the development, production and distribution of oil and gas and is focused on early cash flow, high return projects. The Company controls the rights to significant gas acreage under contract in China and is a strategic partner with several major energy companies in high-value oil fields in China. The Company was founded in 2005 by a group of senior Texaco executives and is led by President and CEO Frank C. Ingriselli. Pacific Asia Petroleum is headquartered in Hartsdale, New York, and also has offices in Beijing, China and California.

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Some of the items discussed in this press release are forward-looking statements about Pacific Asia Petroleum’s activities. Words such as “anticipates,” “expects,” “plans,” “projects,” “believes,” “seeks,” “estimates,” and similar expressions are intended to identify such forward-looking statements. The statements are based upon management’s current expectations, estimates and projections, are not guarantees of future performance, and are subject to certain risks, uncertainties and other factors, some of which are beyond the Company’s control and are difficult to predict. Among the factors are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; results of additional testing; timely development of production opportunities and acquired technologies; the potential disruption or interruption of testing and development activities due to accidents, political events, civil unrest, or severe weather; government-mandated restrictions on scope of company operations; general economic and political conditions; the Company’s need and ability to obtain capital; the Company’s ability to successfully consummate the transactions contemplated with CAMAC pursuant to the Purchase and Sale Agreement and other acquisitions, obtain required government approvals, and integrate the acquired entities and operations into the Company’s business; and other risks described in the Company’s filings with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Pacific Asia Petroleum undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Pacific Asia Petroleum, Inc.
Bonnie Tang, 914-472-6070 (Media)
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Liviakis Financial Communications, Inc
John Liviakis, 415-389-4670 (Investor Relations)
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