Pan Orient Energy to Acquire Interest in Tungkal Project in Indonesia

Calgary-based Pan Orient Energy Corp., an oil and gas exploration and production company with operations in Thailand, Indonesia and in Western Canada, has agreed to purchase additional interests in Indonesia. The principal interest is a 30% non-operated participating interest in the Tungkal production sharing contract (PSC) located onshore in South Sumatra. The other interest is a US$5 million receivable payable upon first commercial gas delivery from the Ruby gas field located offshore in the Sebuku PSC. The agreed purchase price is C$7.5 million, before adjustments, payable in Pan Orient common shares at a deemed value of $4.37 per share. The Tungkal and Sebuku interests are owned by subsidiaries of Alberta-based Fuel-X International Inc. which was placed in receivership in last year.