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

Pan Orient Announces Closing of $30,000,000 Bought Deal Private Placement

Apr 28, 2006 - 16:15 ET

CALGARY, ALBERTA--(CCNMatthews - April 28, 2006) -

This news release is not for dissemination in the United States or to any United States news services.

Pan Orient Energy Corp. (TSX VENTURE:POE) ("Pan Orient" or the "Company") is pleased to announce that it has closed its previously announced bought deal private placement (the "Offering") for total gross proceeds of $30,000,000. A total of 8,000,000 common shares ("Common Shares") of the Company were issued at a price of $3.75 per Common Share. The syndicate of underwriters of the Offering was co-led by Orion Securities Inc. and Wellington West Capital Markets Inc. and also included Research Capital Corporation and Wolverton Securities Ltd. (collectively, the "Underwriters"). In connection with the Offering the Underwriters were paid a commission of 6% of the gross proceeds of the Offering and received compensation options ("Compensation Options") entitling the Underwriters to purchase an additional 240,000 common shares of the Company. The exercise price of the Compensation Options is $4.04 per common share and the Compensation Options are exercisable at any time during the two years after the date of closing of the Offering.

The net proceeds from the Offering will be used by Pan Orient for exploration and development activities on its two existing concessions in Thailand, to fund the Company's proposed three year firm work program on a new Thai concession contingent on the pending award, for further drilling and development of the Company's Sawn Lake interest, and continued new venture activities focused on Thailand, India, Indonesia, and China.

The Common Shares issued pursuant to the Offering will be subject to a four-month hold period from the date of closing of the Offering.

Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand and in Western Canada.

The common shares of Pan Orient have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S." Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

(35,681,973 common shares issued)

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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 Chief Executive Officer
(403) 294-1770


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