Welwyn Resources Ltd.

March 23, 2005 13:07 ET

Welwyn Announces up to $4,500,000 in Financings


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WELWYN RESOURCES LTD.

TSX VENTURE SYMBOL: WLN

MARCH 23, 2005 - 13:07 ET

Welwyn Announces up to $4,500,000 in Financings

CALGARY, ALBERTA--(CCNMatthews - March 23, 2005) - Further to the news
release of January 28, 2005, Welwyn Resources Ltd. ("Welwyn") (TSX
VENTURE:WLN) is pleased to announce that it has increased its previously
contemplated financing to total up to $4,500,000. Welwyn has entered
into engagement letters with Wolverton Securities Ltd. (the "Agent"),
acting as lead agent, for (1) the issuance of up to 2,666,667 Welwyn
common shares at a price of $0.75 per Welwyn common share for gross
proceeds of up to $2,000,000 by way of Short Form Offering Document; and
(2) the issuance of up to 2,666,667 Welwyn common shares at a price of
$0.75 per Welwyn common share for gross proceeds of up to $2,000,000 to
be completed via a private placement, (collectively the "Offerings").
Welwyn has granted the Agent a 25% over allotment option, on the private
placement only, for up to 666,667 common shares at $0.75 per share for
additional gross proceeds of up to $500,000. The Offerings are subject
to a 7% Agent's cash commission. The closing of the Offerings and the
subsequent release of the net proceeds will be contingent upon the
successful completion of the previously announced reverse take-over
transaction with Pan Orient Energy Ltd. ("Pan Orient").

On February 24, 2005, Pan Orient completed the second and final tranche
of its private placement totalling 10,666,666 Pan Orient Common Shares
at a price of $0.75 per Pan Orient Share, for gross proceeds of
$8,000,000.

Following a successful reverse take-over transaction with Pan Orient,
and assuming the Offerings are fully subscribed for including the
Agent's over allotment option, Welwyn will have approximately 23,512,000
shares outstanding and working capital of approximately $11,000,000 in
cash.

The net proceeds received from the offerings of the common shares will
be used to fund land and potential asset acquisitions in Asia and for
the seismic and exploration and development programs on those
properties, once acquired. Additionally, funds will be spent on expanded
capital expenditures on Pan Orient's Sawn Lake heavy oil property.

About Pan Orient

Pan Orient is a private oil and gas company headquartered in Calgary,
Alberta and incorporated pursuant to the Business Corporations Act
(Alberta) in April 2004.

Pan Orient holds a 10% working interest in 63 sections of heavy oil
sands leases in the Sawn Lake area of Northern Alberta. A recent
geological evaluation of the property, completed by AJM Petroleum
Consultants, credits the property with up to 1.2 billion barrels of oil
in place (120 million barrels net to Pan Orient) with an initial
estimated recovery factor of 8% in the anticipated cold flow heavy oil
project. Initial drilling on the Sawn Lake property is anticipated to
take place in mid 2005.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Welwyn Resources Ltd.
    H.S. (Scobey) Hartley
    (403) 237-2396
    or
    Pan Orient Energy Ltd.
    Jeff Chisholm
    President and CEO
    (403) 294-1770