2009-09-25-2009-09-14

To buy 30% nonop WI in Tungkal PSC onshore south Sumatra, Indonesia.

Pan Orient Energy Corp., Calgary, (Toronto Venture: POE) plans to purchase additional interests in Indonesia from Alberta-based Fuel-X International Inc. for C$7.5 million in stock. The assets include a 30% nonoperated participating interest in the Tungkal production sharing contract onshore south Sumatra, Indonesia. Additionally, Pan Orient will acquire a US$5-million receivable payable upon first commercial gas delivery from the Ruby gas field offshore Indonesia in the Sebuku PSC. Additional cash payments to a maximum of US$3.5 million will also be due when cumulative production thresholds are met. The Tungkal and Sebuku interests are owned by subsidiaries of Fuel-X International, which was placed in receivership in September 2007. Closing is expected in the fourth quarter.