Talisman to acquire stake in East Jabung PSC in South Sumatra

Pan Orient Energy Corp.

Canada’s Pan Orient Energy Corp. has entered into an agreement for the transfer of a 51% direct working interest and operatorship of the onshore East Jabung production sharing contract (PSC) in South Sumatra, Indonesia, to a wholly owned subsidiary of Talisman Energy for a consideration of an upfront cash payment of $8 million (CAD 9.2 million).

The deal also included a firm commitment to fund the first $10 million (CAD 11.4 million) toward the first exploration well in addition to all related G&A and overhead costs incurred by the operator until the first $10 million expenditure has been completed, and a Pan Orient option to acquire a 20% working interest in a Talisman-operated South Sumatra joint study area. There is also a contingent commitment to fund the first $5 million (CAD 5.7 million) toward an appraisal well, if justified, in addition to all associated G&A and overhead incurred by the operator until the first $5 million expenditure has been completed.

The transaction is subject only to Government of Indonesia approval, and is anticipated to close upon the receipt of this approval, anticipated in March 2015.

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