Pan Orient Energy Corp.

Pan Orient Energy Corp. is a Calgary-based oil and gas exploration and production company with operations located onshore in Thailand, Indonesia and western Canada. The company has interests in four oil-producing concessions in Thailand and is the operator for all four, with 60% working interest in three and 100% working interest in the fourth. In Indonesia, Pan Orient has operated interests in four production-sharing contracts onshore. In Canada, the company's 53.4%-owned subsidiary, Andora Energy, holds interests ranging from 10–100% in 85.5 contiguous sections of heavy oil sands leases within the central Alberta Peace River Oil Sands area.

Expert Comments:

Chen Lin, What Is Chen Buying? What Is Chen Selling? (1/9/15)
"One idea is investing in companies with world-class discoveries. Because when a major discovery is made, companies are valued at the long-term oil price, not the spot price. In this space, Pan Orient Energy Corp. and its partners are set to drill very important wells in Thailand and Indonesia. . .the upside can double the current stock price easily. The ultimate catalyst is the one that I have been waiting for three years, the East Jabung of Indonesia. It can start drilling in H2/15."

Bob Moriarty, 321 Gold (1/7/15)
"There are some incredible companies selling for peanuts in the oil spectrum. I follow one, Pan Orient Energy Corp., where you can buy $100 bills for about $70. . .so as of the closing on January 12, 2015, the company will have $91M cash and still own 50% of the Thai project that is worth $46.5M to it. . .when any market bottoms and oil will one day, anyone sitting on a lot of cash is in the catbird's seat. Pan Orient has assets in Indonesia and Canada; it isn't a one trick pony."

"Pan Orient Energy Corp.'s pilot oil sands project is in Alberta, but it also owns many conventional projects in Asia. Pan Orient is my favorite energy play because of its very strong balance sheet. The company just announced a $42.5M asset sale in Thailand. This brings its cash value, plus the other 50% of the Thai project, to CA$2.25 per share. It is trading now at $1.70/share. Beyond that, you get Canada and Indonesia for free.

Pan Orient plans to sell its Canadian asset. But right now, that asset is valued, for share purposes, at zero. At rock bottom, it's worth $100M. In Indonesia, Pan Orient's partner will cover drilling costs for 2015. The company announced the Indonesia deal with Talisman Energy on Nov. 11, so its cash position will go even higher. In addition, Pan Orient will have an experienced partner with major Indonesia presence drilling on its very large concessions; the target is as large as half a billion barrels of oil equivalent. That's a huge wild card the market didn't expect. The company is in an ideal situation now because the cash position is there, Canada is producing, Thailand is producing, and the cash flow is covering the expenses." read more >

Bill Newman, Mackie Research Capital (12/1/14)
"Pan Orient Energy Corp. maintains a strong working capital position of $43.6M. In Thailand, the company has a low-cost, multiwell drilling program planned starting in Q1/15 which could provide some near-term catalysts for the stock. In Indonesia, Pan Orient continues to work toward the farmout of its Batu Gajah and Citarum blocks. . .we maintain our Buy recommendation and our $4.50/share target price."

Bill Newman, Mackie Research Capital (11/12/14)
"Pan Orient Energy Corp. announced the farmout of a 51% interest in its East Jabung production sharing contract to Talisman Energy Inc.; the company retains 49% interest, receives $8M cash and will be carried for one exploration well up to a maximum cost of $10M and a contingent carry on an appraisal well for up to $5M. . .with the option to acquire a 20% interest in a South Sumatra joint study area operated by Talisman. . .Pan Orient investors are receiving a three-well exploration/appraisal drill program in Thailand, a potentially funded multi-well high-impact drill program in Indonesia and a Sawn Lake steam-assisted gravity drainage pilot project in Canada at steep discounts."

Mark Heim, Jennings Capital (11/11/14)
"Pan Orient Corp. announced this morning that it has entered into an agreement with a wholly owned subsidiary of Talisman Energy Inc., to transfer a 51% working interest and operatorship in the East Jabung PSC. . .under the terms of the agreement, Pan Orient will receive: 1.) An upfront cash payment of US$8M; 2.)A carry on the first US$10M of exploration expenses on the first well, in addition to all the project G&A until the first US$10M has been spent; 3.) A contingent US$5M carry toward an appraisal well, if deemed necessary; and 4) the option to acquire a 20% interest in Talisman's operated South Sumatra Joint Study Area. . .we reiterate our Buy recommendation and have modestly increased our 12-month target price to CA$4/share from $3.75/share."

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