Pan Orient Energy Corp. (POE) has completed its sale of a 50% stake in Thailand’s L53/48 Concession to a wholly owned subsidiary of Sea Oil Public Co. Ltd.
On Nov. 5, 2014, POE entered into an agreement for the sale of a 50% equity interest in subsidiary Pan Orient Energy (Siam) Ltd. to a wholly owned subsidiary of Sea Oil Public Co. Ltd. for a cash price of $42.5 million, including a working capital adjustment of $2.4 million. Pan Orient Energy (Siam) Ltd. holds POE's 100% interest in Concession L53/48 in Thailand.
On Jan. 12, POE was informed that Sea Oil required additional time to complete certain closing conditions to be satisfied by it. Accordingly, POE and Sea Oil had agreed to delay closing of the transaction for up to three weeks.
On Feb. 2, Sea Oil and POE have satisfied the conditions to closing and accordingly a $38.5 million wire transfer has been initiated to the account of POE. This wire transfer is anticipated to be received within two to three business days, as is customary in most international wire transfers. An additional $4 million break fee has been released from escrow and is being wired to POE's account. It is anticipated that net proceeds to POE, after closing adjustments and costs will be $40.9 million (CAD 50.5 million).
The first of a three-well drilling program on Concession L53 is anticipated to begin in two weeks, with the first well targeting the high impact L53-A North Central prospect (ANC-1). ANC-1 will be targeting one of six structural closures defined on recently acquired 3D seismic data which are located 2.8 miles (4.5 kilometers) south of the U-Thong oil field, operated by another oil company, which has produced over 4.5 million barrels of oil from equivalent sandstone reservoirs that are the primary objective of the ANC-1 well.