Pan Orient announces $40m private placement

Canadian oil, gas firm Pan Orient Energy Corp. announced Monday that it has entered into an agreement with Raymond James Ltd. and Macquarie Capital Markets Canada Ltd., acting as co-lead underwriters on behalf of a syndicate of underwriters, to purchase 6,106,880 common shares of the Company at a price of $6.55 per Common Share for gross proceeds of C$40,000,064 on a bought deal private placement basis.

The Company has also granted the Underwriters an option to increase the size of the Offering by up to an additional 610,688 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 $44,000,070.

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, the company said.

Pan Orient three PSC blocks in Indonesia namely Batu Gajah PSC, South Sumatra, South CPP PSC in Central Sumatra and Citarum PSC in West Java. (alex)