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NEWS RELEASE TRANSMITTED BY Marketwire

FOR: PAN ORIENT ENERGY CORP.

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

Pan Orient Increases Interests in the Batu Gajah & South CPP PSC's in Indonesia

Feb 11, 2011 - 08:30 ET

CALGARY, ALBERTA--(Marketwire - Feb. 11, 2011) - Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is pleased to announce it has entered into a binding agreement which will increase it's interests through its subsidiaries in the Batu Gajah and South CPP Production Sharing Contracts ("PSC's") in Indonesia from 90% to 97%. 

Through the transaction, Pan Orient is cancelling a seven percent carried interest on each of these PSC's previously owned by a third party for consideration of USD$1.3 million, including the issuance of 28,958 shares in Pan Orient at a deemed market value of USD$0.2 million. Closing of the transaction is expected next week. 

Pan Orient is the operator through its subsidiaries of the Batu Gajah and South CPP PSC's in Indonesia and expects to commence a three well exploration drilling program in Batu Gajah in mid March 2011.

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.

This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.

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
or
Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
(403) 294-1770