Pan Orient ups stake at Sumatra blocks

Canadian oil, gas firm Pan Orient Energy Corp. announced it has entered into a binding agreement which will increase its interests through its subsidiaries in the Batu Gajah and South CPP PSCs in South and Central Sumatra from 90% to 97%.

Through the transaction, Pan Orient is cancelling a seven percent carried interest on each of these PSC's previously owned by a third party for consideration of USD$1.3 million, including the issuance of 28,958 shares in Pan Orient at a deemed market value of USD$0.2 million. Closing of the transaction is expected next week.

Pan Orient is the operator through its subsidiaries of the Batu Gajah and South CPP PSC's in Indonesia and expects to commence a three well exploration drilling program in Batu Gajah in mid March 2011.(alex)