Pan Orient Energy Corp.

Pan Orient Energy Corp.

August 29, 2005 14:34 ET

Pan Orient Energy Corp. Announces Filing of Offer to Acquire Tiger Petroleum Inc.

CALGARY, ALBERTA--(CCNMatthews - Aug. 29, 2005) - PAN ORIENT ENERGY CORP. (formerly Welwyn Resources Ltd.) (TSX VENTURE:POE):


Pan Orient Energy Corp. ("Pan Orient") is pleased to announce that it has filed its Offer to Purchase and the accompanying Take-Over Bid Circular (the "Offer") relating to its proposed acquisition of Tiger Petroleum Inc. ("Tiger"). The Offer is open for the acceptance and tender of Tiger security holders until September 30, 2005.

The acquisition consideration consists of one (1) common share of Pan Orient for each four and one quarter (4.25) common shares of Tiger and is subject to certain conditions, including the deposit of not less than 66 2/3% of the outstanding Tiger shares, receipt of all required regulatory approvals and other customary conditions. On August 26, 2005 the closing price of the Pan Orient shares on the TSXV was $1.71, representing a premium of 68% over the $0.24 closing price of Tiger shares on May 10, 2005, being the last day on which the Tiger shares traded on the TSXV prior to being suspended from trading.

The Offer also provides for the acquisition of all of the outstanding convertible debentures of Tiger for, at the election of each holder thereof, (A) cash consideration equal to the principal amount thereof and accrued and unpaid interest thereon, or (B) consideration equal to 870 common shares of Pan Orient for each $1,000 of principal amount thereof and accrued and unpaid interest thereon or (C) any combination of (A) and (B).

Pan Orient currently owns 1,400,000 common shares of Tiger, or approximately 9.4 percent of Tiger's issued and outstanding common shares. After closing of the Tiger acquisition, Pan Orient will have approximately 28.1 million shares outstanding (assuming all Tiger debenture holders convert to Pan Orient shares), approximately $10 million in available uncommitted cash and zero debt.

The Offer can be viewed in its entirety on SEDAR and is currently being mailed to Tiger security holders.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated.

(Listed on the TSX Venture Exchange - Symbol "POE" - 23,548,787 common shares issued)

Contact Information

  • 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