Pan Orient Energy Corp. has entered into an agreement for the transfer of a 51% direct working interest and operatorship of the East Jabung Production Sharing Contract (PSC) to a wholly owned subsidiary of Talisman Energy for a consideration of:

An upfront cash payment of USD$8 million (CDN$9.2 million), A firm commitment to fund the first USD$10 million (CDN$ 11.4 million) towards the first exploration well in addition to all related G&A and overhead costs incurred by the operator until the first USD$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. A contingent commitment to fund the first USD$5 million (CDN $5.7 million) towards an appraisal well, if justified, in addition to all associated G&A and overhead incurred by the operator until the first USD$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 approximately March 2015.

Tags: Pan Orient Energy Corp.