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TSX VENTURE SYMBOL: POE - | View Quote |  View Chart |  View Financials | 

Pan Orient Energy Provides Update on the Tiger Petroleum Acquisition

Oct 31, 2005 - 07:30 ET

CALGARY, ALBERTA--(CCNMatthews - Oct. 31, 2005) -


Further to its news release of October 21, 2005, Pan Orient Energy Corp. (TSX VENTURE:POE) ("Pan Orient") is pleased to provide an update on the status and impact of the successful take over of Tiger Petroleum Inc. ("Tiger"). Since holders of 92% of Tiger Petroleum Inc. ("Tiger") shares tendered to Pan-Orient's offer, Pan Orient intends to acquire the remaining 8% of Tiger's shares pursuant to compulsory acquisition provisions contained in the Quebec Companies Act. The compulsory acquisition process is expected to take approximately 30 days

Pan Orient is pleased to announce that, after giving effect to completion of the Tiger acquisition and based on Tiger's December 31, 2004 reserve report, Pan Orient's net asset value ("NAV") is approximately $3.52 per share based on the future revenue attributable to 9.06 million barrels of proved plus probable reserves, discounted at 10% after tax, in addition to working capital. Based on the $1.86 per share closing price of Pan Orient common shares on October 20, 2005, the date on which the Tiger shares were taken up under the offer, Pan Orient paid $13.80 per net proven barrel acquired, and $0.93 per net proven and probable barrel acquired.

Commenting on the deal Jeff Chisholm, President and CEO of Pan Orient, said "We are very pleased to have acquired such a substantial operated reserve position within our region of focus. The Tiger acquisition falls directly within Pan Orient's first phase growth objective of pursuing low cost, oil prone, shallow onshore exploration and development opportunities within Asia. We believe that development of our newly acquired Thailand acreage, combined with its significant exploration potential, will provide excellent returns for our shareholders for many years to come. Pan Orient currently has approximately $8.5 million in available working capital, a strong financial base from which to explore and develop our newly acquired Thailand assets and our existing Canadian assets and to continue new ventures activities in the Asia region, specifically focused on Thailand, China, India and Indonesia.

2005 and 2006 Programs


Pan Orient anticipates an aggressive exploration and development program to proceed in the remainder of 2005 and into 2006 on our newly acquired Thailand acreage. The program will include a $3.5 million USD (gross) 300 square km high resolution 3D seismic survey and an initial 10-15 well drilling program with an expected gross cost of approximately $300,000 USD per well. Initial production is anticipated at 150 barrels per day per well. The focus of the proposed initial drilling program will be to substantially increase existing production as well as to move 8.45 million barrels of probable reserves and 32.59 million barrels of possible reserves into proven and probable categories. The completion of this program will lay the foundation for a comprehensive, concession-wide development plan for the remainder of 2006.


Operations on the Sawn Lake property are currently in progress with the first vertical test well fully cored through the Blue Sky target interval. The drilling of a 650 meter horizontal leg is complete, with pump installation and test production anticipated by the middle of November, 2005.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Pan Orient Energy Corp.
Jeff Chisholm
President and CEO
(403) 294-1770


Pan Orient Energy Corp.
Jason Bednar
Vice President Finance and CFO
(403) 294-1770