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Pan Orient sells 50 per cent of Thai onshore concession

05th November 2014

Pan Orient Energy has entered into an agreement for the sale of a 50 per cent equity interest in Concession L53/48 onshore Thailand to a wholly owned subsidiary of Sea Oil

Pan Orient sells 50 per cent of Thai onshore concession
A two appraisal well and one exploration well drilling programme in Concession L53/48 is expected to commence shortly after closing in January 2015

Pan Orient Energy (Siam) currently holds Pan Orient's 100 per cent interest in Concession L53/48 in Thailand and will remain as the operator.

A two appraisal well and one exploration well drilling programme in Concession L53/48 is expected to commence shortly after closing in January 2015.

"Pan Orient continues to make significant progress towards the corporate initiative of strengthening the company's balance sheet and de-risking its portfolio of assets, through partial sale or seeking partners,” said Jeff Chisholm, Pan Orient President and chief executive officer.

“The final goal is to retain meaningful working interests with significant upside exposure and a strong balance sheet, facilitating growth and flexibility going forward. In addition to the sale of a 50 per cent interest in the Thailand L53/48 asset announced today, the company has also entered into exclusive negotiations and made significant progress towards the signing of farmout agreements for the East Jabung production sharing contract (PSC) and Batu Gajah PSC in Indonesia and hopes to finalise these negotiations in November. The company has also been actively engaged with a third party working towards concluding a farm-in agreement on the Citarum PSC in Indonesia."

The deal amounts to a cash price of USD 42.5m, including a working capital adjustment of USD 2.4m.

The transaction is anticipated to close on or about January 12, 2015.

The sale and purchase agreement contains customary representations, warranties, covenants and indemnities in favour of Sea Oil.

Closing is subject to Sea Oil shareholder approval (at a meeting scheduled for December 17, 2014), financing, certain regulatory and other third party approvals and waivers, as well as other customary closing conditions. 

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