Pan Orient Increases Stake in Citarum PSC
Pan Orient has completed a transaction through subsidiaries which will increase its interest in the Citarum Production Sharing Contract ("PSC") in Indonesia from 69% to 77%.
Through the transaction, Pan Orient is repurchasing an eight percent carried interest on the PSC previously owned by a third party for consideration of USD $0.5 million, including the issuance of 21,719 shares in Pan Orient at a deemed market value of USD $0.15 million.
Pan Orient, through its subsidiaries, is the operator of the Citarum PSC in Indonesia and expects to commence a high impact three well exploration drilling program late in the third quarter or early in the fourth quarter of 2011. This program will target a combined un-risked best estimate prospective resource of 1.1 trillion cubic feet of natural gas (net to Pan Orient's 77% operated interest) on the heavily populated island of Java, and in a region with excellent pipeline infrastructure and robust natural gas demand.