Pan Orient Energy Corp.

Pan Orient Energy is a Canadian publicly listed junior oil and natural gas company. The Company's principal properties are located in three diverse locations:

In Thailand, the Company's 50% owned subsidiary Pan Orient Energy (Siam) Ltd. is operator with a 100% working interest in oil producing Concession L53/48 on-shore.

In Indonesia, the Company has interests in three production sharing contracts on-shore: Batu Gajah (77% and operated), Citarum (97% and operated); and East Jabung (49% and non-operated after farmout).

In Canada, the Company’s 71.8%-owned subsidiary Andora Energy Corporation holds interests ranging from 10% to 100% in 88 contiguous sections of heavy oil sands leases in the Sawn Lake Property which lies within the central Alberta Peace River Oil Sands area.

Expert Comments:

"Pan Orient Energy Corp. recently sold a 50% interest in the L53 block in Thailand for CA$49M. The company retains a 50% interest in the block. With the sale, we estimate Pan Orient has net positive working capital of approximately CA$92M, which works out to $1.66 per share versus the current market price of about $1.50 per share. The company is trading below cash value right now. Part of the reason for the discount is likely due to that fact that Pan Orient is nearly a pure exploration company, although it does have about 300 bbl/d net of production remaining in Thailand

The real upside in the story in the near term is exploration drilling in Indonesia. In August, Pan Orient expects to spud the Akeh-1 exploration well on the Batu Gajah block, and if the well is successful, then the company should immediately follow up by drilling two more Akeh appraisal wells. We believe this is a relatively low-risk play because the Akeh prospect is located a few hundred meters away from the Selong oil and gas discovery, which is located on the adjacent block. . ." read more >

Bill Newman, Mackie Research Capital (7/2/15)
"For the remainder of 2015, Pan Orient Energy Corp. plans to spend ~$6M, which includes the drilling of the Akeh-1 exploration well on Batu Gajah and the A North East exploration well in Thailand. If the Akeh-1 well is a success, the company may spend an additional $8M on two Akeh appraisal wells. . .at the current stock price, Pan Orient Energy trades below its cash value."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (6/30/15)
"Pan Orient Energy Corp. released a new update; you can see the strong value of the company as each project can be worth more than its current market cap. I am amazed that the market couldn't put two and two together and see the huge value here. . .I believe major catalysts are coming."

Bill Newman, Mackie Research Capital (5/25/15)
"With the proceeds from the sale of Pan Orient Energy Corp.'s 50% interest in Thailand, we estimate net positive working capital has increased to ~$91.7M ($1.64/share); at the current stock price, the company trades below its cash value. We maintain our Buy rating and $4 target on strong financial position and high-impact exploration drilling in Indonesia commencing in H2/15."

Bill Newman, Mackie Research Capital (4/9/15)
"Pan Orient Energy Corp. reported Q4/14 average production of 512 bbl/d oil, which was in line with our estimate of 535 bbl/d. . .at the current stock price, the company trades below its cash value. We maintain our Buy and $4 target on strong financial position and high-impact exploration drilling in Indonesia commencing in H2/15."

"Pan Orient Energy Corp. has not been recognized by the market for quite some time. Frankly, I've been holding it for the past three years. Even after the $0.75 dividend, I'm not making any money, but I'm still extremely excited about the East Jabung project with Talisman, which is in the process of being acquired. It's a very good project because it is land-based and shallow. The capital expenditure is only $4–5M/well with something like a billion barrels of oil equivalent. It could be one of the largest oil discoveries in the world. Also, the fiscal terms of that concession are favorable for Pan Orient—about 35% oil, 35%/65%. Usually Indonesia requires 15%, 15%/85%. Talisman awarded the contract to Pan Orient because it has good connections with the government, but there were a lot of suitors for that property.

When Pan Orient closes the deal with Talisman, which could be any time now, we should have an update on the drilling schedule. The previous update looked like the end of 2015 or early 2016. That will be the lottery of my lifetime because the upside is so enormous. The downside is limited because Pan Orient is trading at cash or below cash if you calculate the money Talisman is going to pay it to option 50% of this concession. So the downside is very limited. The upside is enormous. That's why I'm very excited. For Pan Orient, these are very good fiscal terms; it has a very good location, is land-based and cheap to drill. None of that is priced into the stock, which has held pretty firm while the rest of the sector dropped 80% or 90% or more, so I'm patiently waiting. I hope that the day will come when I get my reward. But, again, this is high-risk exploration. You don't know if a well will hit or not. But if you hit, the upside is enormous." read more >

More Expert Comments

Experts Commenting on This Company

Leslie Haines – Oil and Gas Investor
Mark Heim – Jennings Capital
Ken Lin, Analyst – Paradigm Capital
Chen Lin What Is Chen Buying? What Is Chen Selling?
Bob Moriarty, Author 321 Gold
Bill Newman, Senior Analyst, Energy – Mackie Research Capital
Porter Stansberry, Pres & CEO – Stansberry Research
Jay Taylor, Author Gold, Energy & Tech Stocks

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Pan Orient Energy Corp. Content