Pan Orient drops plan to acquire stake at Tungkal PSC

Calgary-based firm Pan Orient Energy Corp. said it has terminated its plans to acquire a 30 percent interest in Tungkal production sharing contract (PSC) located onshore South Sumatra.

The company did not give further detail.

The company announced in September 2009 it would acquire 30 percent non-operating interest in Tungkal PSC from subsidiaries of Fuel-X International Inc., a Canadian corporation that was placed in receivership in September 2007.

Tungkal PSC is located south of and directly adjacent to the Batu Gajah PSC, which is owned 90% and operated by Pan Orient. Current gross production stands at approximately 800 bopd. (alex)