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

Pan Orient Announces Closing of Bought Deal Financing

Mar 08, 2011 - 12:20 ET

Pan Orient Energy Corp. (TSX VENTURE:POE), ("Pan Orient" or "the Company"), is very pleased to announce it has completed its previously announced bought deal financing of 6,870,240 common shares of the Company (the "Common Shares") at a price of $6.55 per Common Share for gross proceeds of $45,000,072 on a private placement basis (the "Offering"). The syndicate of underwriters was co-led by Raymond James Ltd. and Macquarie Capital Markets Canada Ltd. and included GMP Securities L.P., Canaccord Genuity Corp., Mackie Research Capital Corporation, Haywood Securities Inc. and Paradigm Capital Inc. (the "Underwriters").

In addition, the Underwriters exercised their option to purchase up to an additional 687,024 Common Shares at the same price and upon the same terms as the Offering for additional gross proceeds of $4,500,007. As a result of the foregoing, a total of 7,557,264 Common Shares were issued for total gross proceeds of $49,500,079. The Common Shares issued pursuant to the Offering will be subject to a restricted period ending four months after closing of the Offering.

Goldman Sachs Asset Management, through certain investment funds managed by it, purchased $20,000,425 of the Common Shares being issued pursuant to the Offering.

The net proceeds from the Offering will be used to fund the exploration and development of the Company's petroleum assets in Thailand and Indonesia, general business development and working capital purposes.

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

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

Advisory. This press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated closing date of the Offering and the anticipated use of the net proceeds of the Offering. Although Pan Orient believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Pan Orient can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering could be delayed if Pan Orient is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offering by Pan Orient might change if the board of directors of Pan Orient determines that it would be in the best interests of Pan Orient to deploy the proceeds for some other purpose, such as an acquisition. The forward looking statements contained in this press release are made as of the date hereof and Pan Orient undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.
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. 
Bill Ostlund 
Vice President Finance and CFO 
(403) 294-1770