Pan Orient Energy Corp.

Pan Orient Energy Corp.

February 15, 2011 10:20 ET

Pan Orient Increases Bought Deal Private Placement to $45 Million

CALGARY, ALBERTA--(Marketwire - Feb. 15, 2011) -


Pan Orient Energy Corp. (TSX VENTURE:POE), ("Pan Orient" or "the Company"), is pleased to announce that, in connection with its previously announced private placement, the Company and the syndicate of underwriters co-led by Raymond James Ltd. and Macquarie Capital Markets Canada Ltd. and including GMP Securities L.P., Canaccord Genuity Corp., Mackie Research Capital Corporation, Haywood Securities Inc. and Paradigm Capital Inc. (the "Underwriters"), have agreed to increase the size of the offering to 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 bought deal private placement basis (the "Offering").

The Company has also granted the Underwriters an option (the "Underwriters' Option") to increase the size of the Offering by up to an additional 687,024 Common Shares, such option being exercisable at any time up to 48 hours prior to the closing of the Offering. If the Underwriters' Option is exercised in full, the aggregate gross proceeds raised will be $49,500,079.

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.

Closing of the Offering is anticipated to occur on or about March 8, 2011 (the "Closing Date") and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The Common Shares will be subject to a statutory hold or restricted period of four months following the Closing Date.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold 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 such registration or an applicable exemption from such registration requirements.

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.

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.

Contact Information

  • 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