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Pan Orient Energy Corp.: 2013 Year End Financial & Operating Results

CALGARY, ALBERTA -- (Marketwired) -- 04/14/14 -- Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) reports 2013 year-end and fourth quarter consolidated financial and operating results. Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day net to Pan Orient.

The Corporation is today filing its audited consolidated financial statements as at and for the year ended December 31, 2013 and related management's discussion and analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained online at www.sedar.com or the Corporation's website, www.panorient.ca.

Commenting today on Pan Orient's 2013 results, President and CEO Jeff Chisholm stated: "2013 was a challenging year for the company with very disappointing results from the Indonesia drilling program, particularly at Citarum Production Sharing Contract ("PSC") where a high cost series of wells failed to reach their primary target objectives. Despite this, progress has been made in each of our three operating areas."

HIGHLIGHTS

--  Extensive 2D and 3D seismic programs completed in the Indonesian PSCs of
    Batu Gajah and East Jabung have identified world class exploration
    opportunities. 
--  In order to reduce the Company's financial exposure to Indonesia, the
    Company has elected to seek partners for a portion of all of its
    Indonesian PSCs that will fund a large portion of the planned 2014
    exploration programs.  
--  Thailand drilling and 3D seismic activities at Concession L53 have
    identified additional potential in the L53-D East field and defined the
    L53A-North group of exploration prospects. 
--  The Sawn Lake steam assisted gravity drainage ("SAGD") demonstration
    project is in the commissioning process. 
--  Year-end working capital and non-current deposits of $47.9 million
    combined with Thailand cash flow provide a strong financial base to
    execute 2014 exploration and development programs. 

2013 RESULTS

--  Total corporate funds flow from operations for 2013 of $22.6 million
    ($0.40 per share) with $5.6 million in the fourth quarter of 2013. 
--  At December 31, 2013 Pan Orient had $47.9 million of working capital and
    non-current deposits, and no long-term debt. In addition, Pan Orient had
    $6.8 million of equipment inventory to be utilized for future Thailand
    and Indonesia operations which is included in exploration and evaluation
    assets in the consolidated statement of financial position. Working
    capital and non-current deposits comprised of $41.8 million cash, $2.3
    million of non-current deposits, $12.9 million of Canadian taxes
    receivable and other receivables of $8.9 million and less payables of
    $18.0 million. 
--  The Company recorded a net loss attributable to common shareholders of
    $93.4 million ($1.64 loss per share) in 2013 largely resulting from the
    $106.3 million write-down of exploration and evaluation assets
    associated with the Citarum and South CPP PSCs in Indonesia, a $3.3
    million write-down of exploration and evaluation assets associated with
    Thailand Concession L45, and partially offset by the income tax recovery
    in Canada of $14.7 million. This compares with net income attributable
    to common shareholders in 2012 of $86.6 million ($1.53 per share) which
    included an after tax gain of $79.7 million for the 2012 Thailand
    disposition transaction. 
--  Net income attributable to common shareholders of $7.1 million in the
    fourth quarter of 2013 includes a Canadian income tax recovery of $12.6
    million and partially offset by a $5.4 million in the write-down of
    exploration and evaluation assets.  
--  Capital expenditures were $101.3 million in 2013, with $53.0 million in
    Indonesia, $40.2 million in Thailand and $8.1 million in Canada at the
    Sawn Lake SAGD demonstration project of Andora Energy Corporation
    ("Andora"), which is owned 71.8% by Pan Orient and consolidated with Pan
    Orient for reporting purposes. Capital expenditures for the fourth
    quarter of 2013 were $11.1 million, with $4.7 million in Indonesia, $1.8
    million in Thailand and $4.6 million in Canada at the Sawn Lake SAGD
    demonstration project. Capital expenditures were funded partially by the
    $22.6 million of funds flow from operations and the remaining $78.7
    million through existing working capital. 
--  At December 31, 2013 Pan Orient had outstanding capital commitments of
    $124,000 in Thailand associated with Concession L53, $12.2 million in
    Indonesia associated with the East Jabung PSC and $666,000 in Canada
    with respect to outstanding purchase orders and natural gas pipeline
    tie-in and tariff charges associated with the Sawn Lake SAGD
    demonstration project of Andora. 
--  Thailand 
    --  In 2013 Concession L53 averaged oil sales of 887 BOPD and generated
        $24.2 million in after tax funds flow from operations, or $74.79 per
        barrel. This compares with oil sales in 2012 from Concession L53 of
        937 BOPD and $27.6 million in after tax funds flow from operations,
        or $80.55 per barrel. The reference price of Brent crude oil and the
        realized oil price in 2013 decreased by 5% compared with 2012.
        Concession L53 oil sales in 2013 decreased 5% from 2012 primarily
        due to natural declines in the L53-A and L53-D fields which were
        partially offset with oil production from five new wells in the L53-
        D field and three wells in the new L53-G field. Oil production from
        new wells in the L53-G field fluctuated during the year due to these
        wells being produced for 90 day test periods, plus one 90 day
        extension period in the case of the L53-G2 well, and then shut-in
        until the L53-G field production environmental impact assessment
        ("EIA") was approved by the Government of Thailand on February 19,
        2014. 
    --  Oil sales in the first quarter of 2014 at Concession L53 were 712
        BOPD with 535 BOPD in January 2014, 680 BOPD in February 2014 and
        920 BOPD in March 2014. The increase in oil sales in February and
        March 2014 is attributable to the three L53-G wells being brought
        back on-stream on February 20, 2014 after the EIA for the L53-G
        field was approved by the Government of Thailand. 
    --  On a per barrel basis, after tax funds flow from operations of
        $74.79 in 2013 and resulted from oil sales of $99.47, transportation
        expenses of $1.58, operating expenses of $13.27, general and
        administrative expenses of $5.02 and a royalty to the Thailand
        government of $4.91. Oil sales revenue during this period was
        allocated 20% to expenses for transportation, operating, and general
        & administrative, 5% to the government of Thailand for royalties,
        and 75% to Pan Orient. No Thailand petroleum income taxes or Special
        Remuneratory Benefit tax was paid in 2013. 
    --  Capital expenditures of $1.8 million in Thailand during the fourth
        quarter of 2013 in Concession L53 included well workovers,
        electrification of well sites, EIA applications and the evaluation
        of year-end reserves. 
    --  Capital expenditures were $40.2 million in Thailand during 2013 with
        $37.4 million in Concession L53 and $2.8 million in Concession L45.
        Capital expenditures in Concession L53 included $20.8 million for
        the 13 well drilling program, $8.1 million for workovers to evaluate
        different zones and add oil production, $6.5 million for the 260
        square kilometer 3D seismic program and $2.0 million for other
        capital expenditures and capitalized general and administrative
        expenses. 
    --  The Thailand 2013 drilling program in Concession L53 was completed
        in August and consisted of 13 wells which resulted in: 
        --  The L53-DC1, L53-DC2, L53-DC3 and L53-DC4 wells have produced
            medium and low gravity oil from new pool discoveries within the
            L53-D East oil field area. 
        --  The L53-DEXT exploration well was drilled in the second quarter
            of 2013 into a new fault compartment at the L53-D field. This
            well produced approximately 40 BOPD of 14 degree API heavier oil
            from a shallow "A3" sands during testing. The well is currently
            shut-in after testing water from a shallow zone for which no
            reserves had been attributed. 
        --  The L53-G2 well drilled in late March 2013 was a new pool
            discovery outside of the existing production license areas in
            Concession L53 and a production license and associated
            environmental approval are required for the new L53-G field
            before permanent production could commence. The L53-G2 well, and
            follow-up L53-G3ST1 and L53-G4 appraisal wells, were shut-in at
            the end of their respective 90 day test periods as per
            government regulations. The L53-G production license was granted
            on January 13, 2014 and the environmental approval was received
            on February 19, 2014. The L53-G field produced 83,167 of oil in
            2013, an average of 228 BOPD. 
        --  Unsuccessful exploration wells at L53-DB1 (targeting the L53-D
            West prospect), L53-A4 (targeting the L53-H prospect), L53-F,
            and L53-EXT1 (targeting the deeper "A5" to "A3" oil bearing
            sands that were logged in the L53-DC4 pilot well). The L53-DB1
            well was converted to a water disposal well. 
        --  The L53-A4ST1 exploration well was drilled to test a small
            independent structural closure south east of the L53-A field and
            outside the L53-A production license area. This well encountered
            net oil pay in the "K40-A" sand and had produced on a 90 day
            production test at approximately 15 to 50 BOPD with a water cut
            of approximately 93%. L53-A4ST1 is currently shut-in. 
        --  Wells drilled in this drilling program added an average of 625
            BOPD in the fourth quarter of 2013 and 533 BOPD in the third
            quarter of 2013, despite the L53-G wells being shut in for
            portions of the second half of 2013. 
    --  The December 31, 2013 independent reserves evaluation for Thailand
        on-shore Concession L53/48, where Pan Orient is the operator and has
        a 100% working interest, was conducted by Sproule International
        Limited of Calgary ("Sproule") and was prepared in accordance with
        Canadian Securities Administrators National Instrument 51-101 -
        Standards of Disclosure for Oil and Gas Activities. Company gross
        proved plus probable crude oil reserves are 1.5 million barrels at
        December 31, 2013, with an associated net present value (after tax),
        using forecast prices and costs discounted at 10% per year of
        Cdn$56.1 million, or $0.99 per Pan Orient share based on the current
        56.8 million Pan Orient shares outstanding. The evaluation reflects
        the discovery of the L53G oil field in Concession L53 with 594,000
        barrels of oil, new pool discoveries of 386,000 barrels in the L53D
        field, partially offset by downward revision of 234,000 barrels of
        oil for the L53D and L53A oil fields, and oil production during the
        year of 323,676 barrels. Compared to December 31, 2012 independent
        reserves evaluation, proved plus probable crude oil reserves at
        December 31, 2013 increased by 422,000 barrels and the net present
        value (after tax), using forecast prices and costs discounted at 10%
        per year, increased $14.6 million. 
    --  Capital expenditures in Concession L45 during 2013 were $2.8 million
        for a 50 square kilometer 3D seismic program and EIA approvals.
        Pursuant to the Concession L45 Farm-in Agreement, Pan Orient has
        earned a 20% interest in Concession L45 at December 31, 2013 with
        the completion of this seismic program. Pan Orient has elected not
        to drill the additional two wells to earn a further 40% interest in
        Concession L45. Concession L45 is expected to expire on April 27,
        2014. The Company is registered with the government of Thailand as
        holding a 60% interest in the L45 Concession and $0.5 million has
        been accrued as at December 31, 2013 for expected unfulfilled
        commitments that will be payable to the Government of Thailand upon
        the expiration of the Concession based on this 60% registered
        interest. The Company has recorded a $3.3 million write-down of
        exploration and evaluation assets at December 31, 2013 in respect of
        Concession L45.  
--  Indonesia 
    --  The Company has conducted significant exploration activities in
        Indonesia during 2013 with exploration drilling at the Batu Gajah
        and Citarum PSCs and seismic programs at the Batu Gajah, South CPP
        and East Jabung PSCs to evaluate exploration potential. 
    --  Pan Orient possesses a diverse portfolio of exploration prospects in
        Indonesia and the decision was made in mid-2013 to continue
        exploration of the Batu Gajah, East Jabung and Citarum PSCs through
        farm-out arrangements. During the past eight months the Company has
        completed a 400 square kilometer seismic program at The Batu Gajah
        PSC and a 430 kilometer 2D seismic program at East Jabung PSC in
        conjunction with the farm-out process. 
    --  Pan Orient intends to continue exploration at the East Jabung, Batu
        Gajah and Citarum PSCs through farm-out arrangements. Pan Orient's
        is seeking to farm-out a 40% interest in Batu Gajah PSC, a 50%
        interest in East Jabung PSC and a 50% interest in Citarum PSC. 
    --  During 2013, capital expenditures in Indonesia have been $53.0
        million with $16.6 million at the Citarum PSC, $27.4 million at the
        Batu Gajah PSC, $4.5 million at the South CPP PSC and $4.5 million
        at the East Jabung. Capital expenditures during the year were $24.3
        million for exploration drilling, $24.2 million for seismic
        programs, $3.7 million for capitalized general and administrative
        expenses, and $0.8 for other exploration expenses. 
    --  Citarum PSC onshore Java (Pan Orient operator and 97% ownership) 
        --  Capital expenditures of $16.6 million in 2013 were associated
            with the drilling operations at the Jatayu-1 and Cataka-1A wells
            that continued on from the fourth quarter of 2012 and
            capitalized general and administrative expenses for the first
            half of 2013. 
        --  Exploration drilling to date at the Citarum PSC has been very
            technically challenging and has not led to commercial
            discoveries. Pan Orient is conducting a farm-out process to seek
            a partner for continued exploration of the Citarum PSC. 
        --  Pan Orient's decision to discontinue drilling at the Citarum PSC
            and to initiate a farm-out process for continued exploration of
            the Citarum PSC results in the future value of the Citarum PSC
            being dependent on the success of exploration drilling
            operations through the intended farm-out arrangement. As such,
            the Company reduced the carrying value of the Citarum PSC
            exploration and evaluation assets to zero and recorded an
            impairment charge of $92.6 million.  
    --  Batu Gajah PSC onshore Sumatra (Pan Orient operator and 77%
        ownership) 
        --  On January 16, 2013 an additional 1,730 square kilometers
            (gross) of exploration lands were relinquished at the Batu Gajah
            PSC, to hold 793 square kilometers (gross). 
        --  Capital expenditures in 2013 of $27.4 million with $4.7 million
            for drilling of the Shinta-1 exploration well, $4.5 million for
            the Buana-1 appraisal well, $16.6 million for the 400 square
            kilometer 3D seismic program which was completed in the third
            quarter and other capital expenditures of $1.6 million. 
        --  With respect to the 400 square kilometers 3D seismic program,
            field acquisition has been completed over the Raka, Takar, Rafa
            and western prospect areas, and the 3D data is being processed
            and mapped. 
        --  The operator of the Lemang PSC (directly adjacent to and west of
            a retained portion of Pan Orient's Batu Gajah PSC), has
            announced that significant hydrocarbons have been encountered in
            two wells located close to the Lemang PSC / Batu Gajah PSC
            boundary. Mapping of 2D seismic data over these wells combined
            with 2D seismic acquired by Pan Orient in 2010 indicates a
            portion of this structural closure extends into the Batu Gajah
            PSC. Articles of the PSC contract indicate that unitization of
            the potential field will be mandatory in the event of a "shared"
            field. Pan Orient is currently in discussions on this matter
            with the Indonesian oil and gas regulator and working towards
            the drilling of a well in the area in 2014, subject to both the
            timing of forestry approval and successfully farming-out a 40%
            interest.   
    --  South CPP PSC onshore Sumatra (Pan Orient operator and 77%
        ownership). 
        --  Capital expenditures were $4.5 million in 2013 with $4.2 million
            for the 227 kilometer 2D seismic program which was completed in
            May 2013 and $0.3 million for capitalized general and
            administrative expenses and other capital expenditures. 
        --  After the evaluation of the seismic program results, the Company
            decided in the second quarter of 2013 to relinquish the South
            CPP PSC. As part of the relinquishment, it is expected that the
            Company is required to pay the Government of Indonesia for
            unfulfilled firm commitments in the amount of $2.7 million, and
            this amount has been accrued for in the financial statements. As
            a result of the intended relinquishment the Company reduced the
            carrying value of the South CPP PSC exploration and evaluation
            assets to zero and the Company recorded an impairment charge of
            $13.7 million for the exploration and evaluation assets of the
            South CPP PSC in 2013. 
    --  East Jabung PSC on-shore and offshore Sumatra (Pan Orient operator
        and 100% ownership) 
        --  Capital expenditures of $4.5 million in 2013 related primarily
            to the 440 kilometer 2D seismic program which is expected to be
            completed by the end of April, with processing and
            interpretation of this data to be completed by July. 
        --  In the fourth quarter of 2013, the Company submitted an
            application to the Government of Indonesia to voluntarily
            relinquish approximately 3,243 square kilometers of the PSC's
            offshore area. The result of the relinquishment does not impact
            the PSC's onshore exploration activities. 
    --  As at December 31, 2013 estimated commitments for Indonesia PSCs to
        November 2014 were $12.2 million for the East Jabung PSC. 
--  Canada 
    --  Andora is focused on developing the bitumen resources at the Sawn
        Lake property in the Peace River Oil Sands Region using SAGD
        development. Andora received regulatory approval for a demonstration
        project under the Oil Sands Conservation Act from the Energy
        Resources Conservation Board and approval from the Government of
        Alberta under the Environmental Protection and Enhancement Act prior
        to 2013. The first step towards determining the commercial viability
        of the SAGD recovery process at Sawn Lake is completion of Phase 1
        of our SAGD Demonstration Project to provide an indication of the
        productivity of the reservoir and the amount of steam injection
        required to produce the bitumen, which are key components in
        assessing the potential for SAGD development at Sawn Lake. 
    --  The demonstration project is located in the Central Block of Sawn
        Lake where Andora is the operator and holds a 50% working interest.
        Phase 1 of the SAGD demonstration project in 2013 / 2014 consists of
        drilling one SAGD well pair, construction of the SAGD facility for
        steam generation, water handling and oil treating, and installing
        water source and disposal facilities. The SAGD wells were drilled in
        the fourth quarter of 2013 to a depth of 650 meters and have a
        horizontal length of 780 meters. Final construction of the SAGD
        facility is currently being completed and steam injection at the
        Sawn Lake SAGD demonstration project is scheduled for April 2014.
        After three months of steam injection, bitumen production is
        anticipated at approximately the end of July 2014. 
    --  The oil sands project at Sawn Lake Alberta as at December 31, 2013
        was evaluated by Sproule Unconventional Limited ("Sproule
        Unconventional"). Contingent resources are those quantities of
        petroleum estimated, as of a given date, to be potentially
        recoverable from known accumulations using established technology or
        technology under development, but which are not currently considered
        to be commercially recoverable due to one or more contingencies. The
        contingent resource volumes estimated in the Sproule Unconventional
        report are considered contingent until such time as commercial
        recovery has been confirmed with SAGD production rates from a SAGD
        pilot, regulatory approvals for commercial SAGD development have
        been obtained and the company has a firm commercial development plan
        and funding for the commercial development. Contingent Resources are
        further classified as "High", "Best" and "Low" in accordance with
        the level of certainty. There is no certainty that it will be
        economically viable to produce any of the reported contingent
        resource volumes. 
    --  The December 31, 2013 contingent resource report by Sproule
        Unconventional represents a mechanical update incorporating new
        forecasted prices for crude oil, natural gas and exchange rates, and
        revised estimates of capital expenditures associated with drilling
        SAGD wells. There is no change from the estimate of contingent
        resource volumes as at December 31, 2012 prepared by Sproule
        Unconventional. The net present value of the "Best Case" (discounted
        at 10% before income tax using forecast prices) attributed to Sawn
        Lake contingent resources increased by 14% to $557 million as a
        result of a 6% increase in crude oil prices, a 5% decrease in
        forecast natural gas prices and a 10% decrease in the estimated
        capital cost for drilling of SAGD wells, partially offset by a 12%
        increase in the bitumen differential and a 20% increase in Crown
        royalties. 
    --  In March 2014, the 3% gross overriding royalty ("GORR") on a portion
        of the non-owned working interests in 12 sections of the Central
        Block and 24.5 sections of the North Block was repurchased by a
        joint venture partner with $2.7 million paid to Andora. This sale of
        the GORR by Andora was part of an agreement with joint venture
        partners that allowed the demonstration project to move forward and
        enabled the joint venture partners to fund their share 50% share of
        the demonstration project. The net present value of the "Best Case"
        (discounted at 10% after income tax using forecast prices)
        attributed to Pan Orient's 71.8% share of the Sawn Lake contingent
        resources for the GORR interests is $55 million on a before tax
        basis, and $41 million on an after tax basis. The sale price of the
        GORR reflects that commercial viability of SAGD development at Sawn
        Lake has not yet been established, and that key economic parameters
        need to be determined with the demonstration project 

OUTLOOK

--  Thailand 
    --  Thailand activities are currently focused on the EIA approval for
        six exploration well locations that were selected on the basis of
        the recently completed 3D seismic survey. Three of these surface
        locations that are comprised of up to four wells per pad are located
        over a cluster of prospects that include the L53A-North prospect in
        the northeastern portion of Concession L53. It is anticipated that
        approval for these locations will be received in late April, subject
        to the possible delays that have been experienced with this process
        in the past. Approval prior to the end of June would allow the L53A-
        North location construction to be completed prior to the onset of
        the annual monsoon. 
    --  In addition to the drilling of the L53A-North prospect, two
        appraisal wells will be drilled at the L53-D East field, with one of
        these wells targeting a undrilled fault compartment where a portion
        of the 2013 year-end downward reserve revision was the result of a
        reclassification of reserves to prospective resourced based on new
        seismic mapping integrated with the wells drilled in 2013. 
    --  Total Capital expenditures for Thailand in 2014 are estimated at
        $7.7 million. 
--  Indonesia 
    --  Much of the progress made regarding the exploration potential that
        was defined in Indonesia in the latter part of 2013 and early 2014
        based on newly acquired 2D and 3D seismic data was overshadowed by
        drilling results earlier in 2013 at the Citarum PSC where a very
        difficult, structurally complex drilling environment resulted in the
        failure to reach the deeper primary objectives on two prospects.
        This disappointing and expensive outcome resulted in the decision by
        the Board of Pan Orient to reduce the company's financial exposure
        to Indonesia by seeking partners for each of the three remaining
        Company operated contract areas, despite the high remaining
        exploration potential of the Indonesian assets. 
    --  The Company has now received and is currently evaluating farm-in
        proposals for the East Jabung PSC, and continues discussions
        witlateh a number of parties that expressed interest late in the
        farm-out process and were unable to meet the March 31, 2014 request
        for proposals for the Batu Gajah and Citarum PSCs. The Company
        anticipates a near term announcement to be made with regard to a new
        East Jabung partner and the Company continues to progress
        discussions with potential future partners for the Batu Gajah and
        Citarum PSCs. 

Batu Gajah PSC

--  Pan Orient is currently in discussions with the Indonesian oil and gas
    regulator relating to unitization of the potential new field in the
    adjacent Lemang PSC, and is working towards the drilling of a well in
    the area in 2014, subject to both the timing of forestry approval and
    successfully farming-out a 40% interest. 
--  The timing of an up to three well exploration program at Batu Gajah
    targeting Takar, Raka and Akatara East prospects will be directly
    dependent upon the timing of the farm-out of a 40% interest. 
    --  Takar Prospect: a 46 square kilometer in maximum areal extent
        closure surrounding the Manismata-1 gas discovery made in 1988 by a
        major international oil and gas company. 
    --  Raka Prospect: a large 36 square km structure in maximum areal
        extent closure comprising a possible oil leg down dip of another
        1980's gas discovery made by a major international oil and gas
        company at Tiung. 
    --  Akatara East Prospect: directly offsets the Akatara / Selong oil and
        gas discovery which was made in 2012/2013 by a competitor in an
        adjacent PSC and in which one of the wells which tested oil and gas
        was drilled approximately 150 meters from the concession boundary
        within a structural closure that is interpreted to extend into the
        Pan Orient operated Batu Gajah PSC based on 2D seismic data.
        Discussions have taken place and continue with the Indonesian oil
        and gas regulator regarding a data trade including wells and
        additional seismic towards a possible unitization of the portion of
        the Akatara discovery. 

East Jabung PSC

--  The timing of a one well program at East Jabung targeting the Anggun
    prospect will be directly dependent upon the timing of the farm-out of a
    50% interest. 
--  Anggun prospect: a 228 km 2D seismic survey acquired in 2013, infilling
    existing older vintage 2D seismic data, has confirmed an approximately
    85 to 100 square km maximum structural closure at three primary target
    levels. 
--  The last portion of an approximately 440 km 2D seismic program in East
    Jabung PSC is anticipated to be completed within the next 2 weeks over
    the North prospect with processing and interpretation of this data to be
    completed by July 2014. 

Citarum PSC

--  The timing of a two well drilling program at Citarum PSC targeting the
    re-drilling of the Cataka and Jatayu prospects will be dependent on the
    timing to farm-out a 50% working interest. 

--  Canada - Sawn Lake (Operated by Andora, in which Pan Orient has a 71.8%
    ownership) 
    --  Pan Orient looks forward to completion of construction and
        commencement of steam injection for Phase 1 of the Sawn Lake SAGD
        demonstration project, which is scheduled for the end of April 2014.
        After three months of steam injection, bitumen production is
        anticipated at approximately the end of July 2014. 
        
        Depending on results of the first SAGD well pair in Phase 1, Andora
        will proceed with Phase 2 of the demonstration project. The second
        phase would include the drilling of two additional SAGD well pairs
        and the associated expansion of the SAGD facility. 

Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.

This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

                               ---------------------------------------------
                                  Three Months     Twelve Months            
                                     Ended             Ended                
Financial and Operating Summary   December 31,      December 31,     Change 
                                                                            
(thousands of Canadian dollars                                              
 except where indicated)           2013     2012     2013     2012          
----------------------------------------------------------------------------
FINANCIAL                                                                   
----------------------------------------------------------------------------
Oil revenue, before royalties                                               
 and transportation expense       8,880    9,198   32,196   55,162      -42%
Funds flow from operations                                                  
 (Note 1)                         5,598    5,837   22,596   34,819      -35%
  Per share - basic and diluted  $ 0.10   $ 0.10   $ 0.40   $ 0.61      -35%
Funds flow from operations by                                               
 region (Note 1)                                                            
  Canada                             79     (324)    (157)  (3,334)     -95%
  Thailand                        6,272    6,308   24,209   38,705      -37%
  Indonesia                        (753)    (147)  (1,456)    (552)     164%
                               ---------------------------------------------
  Total                           5,598    5,837   22,596   34,819      -35%
                               ---------------------------------------------
                               ---------------------------------------------
Funds flow - Thailand                                                       
 disposition net proceeds (Note                                             
 2)                                   -      785        -  159,290     -100%
Net income (loss) attributed to                                             
 common shareholders              7,083      859  (93,362)  86,642     -208%
  Per share - basic and diluted  $ 0.13   $ 0.02  $ (1.64)  $ 1.53     -208%
Working capital                  45,635  114,210   45,635  114,210      -60%
Working capital & non-current                                               
 deposits                        47,889  116,376   47,889  116,376      -59%
Long-term debt                        -        -        -        -        0%
Petroleum and natural gas                                                   
 properties                                                                 
  Capital expenditures (Note 3)  11,144   20,539  101,280   78,011       30%
  Acquisitions - Indonesia                                                  
   (Note 4)                           -    5,729        -    5,729     -100%
Shares outstanding (thousands)   56,760   56,720   56,760   56,720        0%
----------------------------------------------------------------------------
Funds Flow from Operations per                                              
 Barrel (Note 1)                                                            
----------------------------------------------------------------------------
  Canada operations              $ 0.89  $ (3.42) $ (0.49) $ (6.37)     -92%
  Thailand operations             70.79    66.66    74.79    73.97        1%
  Indonesia operations            (8.50)   (1.55)   (4.50)   (1.05)     329%
                               ---------------------------------------------
  Total                         $ 63.18  $ 61.69  $ 69.80  $ 66.55        5%
----------------------------------------------------------------------------
Capital Expenditures (Note 3)                                               
----------------------------------------------------------------------------
  Canada                          4,634      316    8,061      575     1302%
  Thailand                        1,765    6,677   40,209   37,407        7%
  Indonesia                       4,745   13,546   53,010   40,029       32%
                               ---------------------------------------------
  Total                          11,144   20,539  101,280   78,011       30%
----------------------------------------------------------------------------
Working Capital and Non-current                                             
 Deposits                                                                   
----------------------------------------------------------------------------
Beginning of period              40,879  134,061  116,376   51,632      125%
  Funds flow from operations                                                
   (Note 1)                       5,598    5,837   22,596   34,819      -35%
  Thailand disposition net                                                  
   proceeds (Note 2)                  -      785        -  159,290     -100%
  Thailand disposition - sale                                               
   of working capital (Note 2)        -        -        -   (4,591)    -100%
  Capital expenditures (Note 3) (11,144) (20,539)(101,280) (78,011)      30%
  Disposal of petroleum and                                                 
   natural gas assets             1,239        -    1,239        -      100%
  Recovery of taxes paid on                                                 
   Thailand disposition (Note                                               
   5)                            12,458        -   14,243        -      100%
  Accrued relinquishment costs                                              
   (Note 15 & 18)                  (513)       -   (3,246)       -      100%
  Special dividend                    -        -        -  (42,540)    -100%
  Acquisitions - Indonesia                                                  
   (Note 6)                           -   (3,552)       -   (3,552)    -100%
  Foreign exchange impact on                                                
   working capital                 (628)    (335)  (2,169)    (790)     175%
  Net proceeds on share                                                     
   transactions                       -      119      130      119      100%
                               ---------------------------------------------
End of period                    47,889  116,376   47,889  116,376      -59%
----------------------------------------------------------------------------
Canada Operations (excluding                                                
 Thailand disposition)                                                      
----------------------------------------------------------------------------
Interest income                     135      349      787      845       -7%
General and administrative                                                  
 expense (Note 7)                  (427)    (832)  (1,429)  (2,766)     -48%
Current income tax recovery         185        -      437        -      100%
Realized foreign exchange gain                                              
 (loss)                             186      159       48   (1,413)    -103%
                               ---------------------------------------------
Funds flow from operations                                                  
 (Note 1)                            79     (324)    (157)  (3,334)     -95%
                               ---------------------------------------------
                               ---------------------------------------------
Funds flow from operations per                                              
 barrel                                                                     
  Interest income                $ 1.52     3.69   $ 2.43   $ 1.61       51%
  General and administrative                                                
   expense (Note 7)               (4.82)   (8.79)   (4.41)   (5.29)     -17%
  Current income tax recovery      2.09        -     1.35        -      100%
  Realized foreign exchange                                                 
   gain (loss)                     2.10     1.68     0.14    (2.70)    -105%
                               ---------------------------------------------
  Canada - Funds flow from                                                  
   operations                    $ 0.89    (3.42) $ (0.49) $ (6.37)     -92%
                               ---------------------------------------------
                               ---------------------------------------------
Wells drilled - Andora Energy                                               
 Corporation                                                                
  Gross                               2        -        2        -      100%
  Net                               0.7        -      0.7        -      100%
----------------------------------------------------------------------------
                               ---------------------------------------------
                                  Three Months     Twelve Months            
                                     Ended             Ended                
                                  December 31,      December 31,            
(thousands of Canadian dollars                                              
 except where indicated)           2013     2012     2013     2012   Change 
                               ---------------------------------------------
Indonesia Operations                                                        
----------------------------------------------------------------------------
General and administrative                                                  
 expense (Note 7)                  (665)    (147)  (1,482)    (552)     168%
Realized foreign exchange                                                   
 (loss) gain                        (88)       -       26        -      100%
                               ---------------------------------------------
  Indonesia - Funds flow from                                               
   operations                    $ (753)    (147)  (1,456)    (552)     164%
                               ---------------------------------------------
                               ---------------------------------------------
Wells drilled                                                               
  Gross                               -        2        3        3        0%
  Net                                 -      1.6      3.0      2.4       25%
----------------------------------------------------------------------------
Thailand Operations (Note 2)                                                
----------------------------------------------------------------------------
Oil sales (bbls)                 88,603   94,624  323,676  523,259      -38%
Average daily oil sales (BOPD)                                              
 by Concession                                                              
  L53                               963    1,029      887      937       -5%
  L44, L33, SW1 (interests sold                                             
   June 15, 2012)                     -        -        -      493     -100%
                               ---------------------------------------------
  Total                             963    1,029      887    1,430      -38%
                               ---------------------------------------------
Average oil sales price, before                                             
 transportation (CDN$/bbl)     $ 100.22  $ 97.21  $ 99.47 $ 105.42       -6%
Reference Price (volume                                                     
 weighted) and differential                                                 
  Crude oil (Brent $US/bbl)    $ 109.02 $ 110.07 $ 108.31 $ 114.07       -5%
  Exchange Rate $US/$Cdn           1.05     1.01     1.03     1.01        2%
  Crude oil (Brent $Cdn/bbl)   $ 115.04 $ 110.80 $ 112.37 $ 115.57       -3%
  Sale price / Brent reference                                              
   price                             87%      88%      89%      91%      -2%
Funds flow from operations                                                  
 (Note 1)                                                                   
  Crude oil sales                 8,880    9,198   32,196   55,162      -42%
  Government royalty               (438)    (452)  (1,590)  (2,734)     -42%
  Other royalty                       -        -        -      (49)    -100%
  Transportation expense           (142)    (135)    (513)    (931)     -45%
  Operating expense              (1,547)  (1,750)  (4,294)  (6,994)     -39%
                               ---------------------------------------------
  Field netback                   6,753    6,861   25,799   44,454      -42%
  General and administrative                                                
   expense (Note 7)                (491)    (574)  (1,625)  (2,405)     -32%
  Interest income                    10       21       37       64      -42%
  Current income tax                  -        -       (2)  (3,408)    -100%
                               ---------------------------------------------
  Thailand - Funds flow from                                                
   operations (Note 1)            6,272    6,308   24,209   38,705      -37%
                               ---------------------------------------------
                               ---------------------------------------------
Funds flow from operations /                                                
 barrel (CDN$/bbl) (Note 1)                                                 
  Crude oil sales              $ 100.22  $ 97.21  $ 99.47 $ 105.42       -6%
  Government royalty              (4.94)   (4.78)   (4.91)   (5.22)      -6%
  Other royalty                       -        -        -    (0.09)    -100%
  Transportation expense          (1.60)   (1.43)   (1.58)   (1.78)     -11%
  Operating expense              (17.46)  (18.49)  (13.27)  (13.37)      -1%
                               ---------------------------------------------
  Field netback                   76.22    72.51    79.71    84.96       -6%
  General and administrative                                                
   expense (Note 7)               (5.54)   (6.07)   (5.02)   (4.60)       9%
  Interest Income                  0.11     0.22     0.11     0.12       -5%
  Current income tax                  -        -    (0.01)   (6.51)    -100%
  SRB tax                             -        -        -        -        0%
                               ---------------------------------------------
                               ---------------------------------------------
  Thailand - Funds flow from                                                
   operations (Note 1)          $ 70.79  $ 66.66  $ 74.79  $ 73.97        1%
                               ---------------------------------------------
                               ---------------------------------------------
Government royalty as                                                       
 percentage of crude oil sales        5%       5%       5%       5%       0%
SRB as percentage of crude oil                                              
 sales                                0%       0%       0%       0%       0%
Income tax as percentage of                                                 
 crude oil sales                      0%       0%       0%       6%    -100%
As percentage of crude oil                                                  
 sales                                                                      
  Expenses - transportation,                                                
   operating and G&A                 25%      27%      20%      19%       6%
  Government royalty and income                                             
   tax                                5%       5%       5%      11%     -55%
  Funds flow from operations,                                               
   before interest income            71%      68%      75%      70%       7%
Wells drilled                                                               
  Gross                               -        -       13        7       86%
  Net                                 -        -     13.0      5.0      160%
----------------------------------------------------------------------------
                                                                            
                                        ------------------------------------
                                              Year Ended                    
                                              December 31,           Change 
                                                                            
(thousands of Canadian dollars except                                       
 where indicated)                              2013        2012             
----------------------------------------------------------------------------
RESERVES AND CONTINGENT RESOURCES                                           
----------------------------------------------------------------------------
Onshore Thailand - Concession L53/48                                        
 (Pan Orient 100% working interest &                                        
 operator)                                  (Note 8)    (Note 9)            
  Proved oil reserves (thousands of                                         
   barrels)                                     621         405          53%
  Proved plus probable oil reserves                                         
   (thousands of barrels)                     1,509       1,087          39%
  Net present value of proved + probable                                    
   reserves, after tax discounted at 10%     56,120      41,494          35%
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 0.99      $ 0.73          36%
  Net present value of proved + probable                                    
   reserves, after tax discounted at 15%     53,182      40,060          33%
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 0.94      $ 0.71          32%
                                                                            
Canada (Pan Orient's 71.8% share of the                                     
 oil sands leases of Andora at Sawn                                         
 Lake, Alberta)                            (Note 11)   (Note 12)            
Contingent Oil Resources - Best Estimate                                    
 "2C" (thousands of barrels)                154,000     154,000           0%
Working Interest and Gross Overriding                                       
 Royalty ("GORR") - Contingent Resources                                    
 "2C"                                                                       
----------------------------------------                                    
Net Present value, before tax discounted                                    
 at 10%                                     400,000     351,000          14%
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 7.05      $ 6.18          14%
  Net present value, before tax                                             
   discounted at 15                         115,000      93,000          24%
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 2.03      $ 1.64          24%
  Net Present value, after tax                                              
   discounted at 10%                        261,700     224,000          17%
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 4.61      $ 3.95          17%
  Net present value, after tax                                              
   discounted at 15                          44,900      28,400          58%
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 0.79      $ 0.50          58%
                                                                            
Working Interest (Note 13) - Contingent                                     
 Resources "2C"                                                             
----------------------------------------                                    
  Net Present value, before tax                                             
   discounted at 10%                        345,600                         
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 6.09                         
  Net present value, before tax                                             
   discounted at 15%                         83,500                         
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 1.47                         
  Net Present value, after tax                                              
   discounted at 10%                        220,400                         
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 3.88                         
  Net present value, after tax                                              
   discounted at 15%                         20,900                         
    Per Pan Orient share - basic (Note                                      
     10)                                     $ 0.37                         
                                                                            
INTERNATIONAL INTERESTS AT DECEMBER 31, 2013                                
----------------------------------------------------------------------------
All amounts reflect                                   December 31, 2013     
 Pan Orient's                         Net Square    Financial Commitments   
 interest                Status       Kilometers       (CDN thousands)      
----------------------------------------------------------------------------
Onshore Thailand                                                            
 Concessions                                                                
-----------------------------------                                         
L53/48 (100% working                                                        
 interest &          Partially                                    to January
 operator) (Note 14) developed               975         $ 124          2016
L45/50 (20% working                                                         
 interest &                                      Unfulfilled commitment has 
 operator) (Note 15) Undeveloped             398 been accrued               
                                   -----------------------------------------
                                           1,373         $ 124              
                                   ----------------------------             
                                   --------------                           
Onshore Indonesia                                                           
 PSCs                                                                       
-----------------------------------                                         
Citarum PSC, West                                                           
 Java (97% interest                                                         
 & operator) (Note                                                          
 16 & 17)            Undeveloped             861 Refer Note 17              
Batu Gajah PSC,                                                             
 South Sumatra (77%                                                         
 interest &                                      Commitments to date have   
 operator) (Note 16) Undeveloped             610 been completed             
South CPP PSC,                                                              
 Central Sumatra                                                            
 (77% interest &                                                            
 operator) (Note 16                              Unfulfilled commitment has 
 & 18)               Undeveloped               - been accrued               
Onshore & Offshore                                                          
 Indonesia PSC                                                              
---------------------                                                       
East Jabung PSC,                                                            
 South Sumatra (100%                                                        
 interest &                                                                 
 operator) (Note 16,                                           to November  
 19 & 20)            Undeveloped           6,228      $ 12,159 2014         
                                   ----------------------------             
                                           7,699      $ 12,159              
                                   ----------------------------             
                                   ----------------------------             
Consolidated Total                         9,072      $ 12,283              
                                   ----------------------------             
                                   ----------------------------             
                                                                            
----------------------------------------------------------------------------
                                                                            

INTERNATIONAL INTERESTS AT DECEMBER 31, 2013                                
----------------------------------------------------------------------------
All amounts reflect                                  2013 Avg.  P+P Reserves
 Pan Orient's                                       Production (thousands of
 interest                                               (BOPD)      barrels)
----------------------------------------------------------------------------
Onshore Thailand                                                            
 Concessions                                                                
--------------------                                                        
L53/48 (100% working                                                        
 interest &                                                                 
 operator) (Note 14)                                       887         1,509
L45/50 (20% working                                                         
 interest &                                                                 
 operator) (Note 15)                                         -             -
                                                 ---------------------------
                                                           887         1,509
                                                 ---------------------------
                                                 ---------------------------
Onshore Indonesia                                                           
 PSCs                                                                       
--------------------                                                        
Citarum PSC, West                                                           
 Java (97% interest                                                         
 & operator) (Note                                                          
 16 & 17)                                                                   
Batu Gajah PSC,                                                             
 South Sumatra (77%                                                         
 interest &                                                                 
 operator) (Note 16)                                                        
South CPP PSC,                                                              
 Central Sumatra                                                            
 (77% interest &                                                            
 operator) (Note 16                                                         
 & 18)                                                                      
Onshore & Offshore                                                          
 Indonesia PSC                                                              
--------------------                                                        
East Jabung PSC,                                                            
 South Sumatra (100%                                                        
 interest &                                                                 
 operator) (Note 16,                                                        
 19 & 20)                                                                   
                                                                            
                                                                            
                                                                            
Consolidated Total                                                          
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                                            
(1)  Funds flow from operations ("funds flow" before changes in non-cash    
     working capital and reclamation costs) is used by management to analyze
     operating performance and leverage. Funds flow as presented does not   
     have any standardized meaning prescribed by IFRS and therefore it may  
     not be comparable with the calculation of similar measures of other    
     entities. Funds flow is not intended to represent operating cash flow  
     or operating profits for the period nor should it be viewed as an      
     alternative to cash flow from operating activities, net earnings or    
     other measures of financial performance calculated in accordance with  
     IFRS.                                                                  
(2)  Thailand Concessions SW1, L44 and L33 were sold on June 15, 2012.      
     Proceeds of $185.3 million less transaction costs of $11.3 million and 
     estimated tax of $14.7 million results in proceeds net of expenses of  
     $159.3 million. After deducting $79.6 million related to the carrying  
     value of petroleum and equipment, exploration and evaluation costs, and
     working capital sold (including the elimination of the associated      
     deferred tax liabilities, employee pension liabilities, and            
     decommissioning provision). The net after tax gain on sale is $79.6    
     million. The 2012 financial statements and operating results include   
     revenue, expenses and capital expenditures associated with these       
     properties to June 14, 2012.                                           
(3)  Cost of capital expenditures, excluding any decommissioning provision  
     and excluding the impact of changes in foreign exchange rates.         
(4)  Cost of acquisitions, including the provision for the long term accrued
     liabilities of future payments contingent upon the delivery of         
     petroleum from a commercial development of hydrocarbon from            
     discoveries.                                                           
(5)  The current income tax recovery in 2013 is the result of losses on     
     loans made to the Company's subsidiaries which hold the South CPP and  
     Citarum Production Sharing Contracts in Indonesia. The current period's
     losses are being carried back and applied to 2012's gain on the sale of
     the Company's Thailand interests to recover the related taxes paid. The
     current income tax recovery in 2013 is based on management's           
     application of current income tax laws and subject to audit by the     
     Canadian taxation authorities.                                         
(6)  Cost of acquisitions, excluding the provision for the long term accrued
     liabilities of future payments at the Citarum PSC contingent upon the  
     delivery of petroleum from a commercial development of hydrocarbon from
     discoveries.                                                           
(7)  General & administrative expenses, excluding non-cash accretion and    
     gain on settlement of decommissioning provision.                       
(8)  Thailand reserves as at December 31, 2013 as evaluated by Sproule      
     International Limited of Calgary assessed at forecast crude oil        
     reference prices and costs. The US$ reference price for crude oil per  
     barrel (US$ UK Brent per barrel) in the evaluation is $96.00 for 2014, 
     $91.25 for 2015, $86.54 for 2016, $94.28 for 2017, $95.70 for 2018,    
     $97.13 for 2019 and prices increase at 1.5% per year thereafter. The   
     engineered values disclosed may not represent fair market value.       
(9)  Thailand reserves as at December 31, 2012 as evaluated by Sproule      
     International Limited of Calgary assessed at forecast crude oil        
     reference prices and costs. The US$ reference price for crude oil per  
     barrel (US$ UK Brent per barrel) in the evaluation is $106.42 for 2013,
     $101.65 for 2014, $97.56 for 2015, $105.07 for 2016, $106.65 for 2017, 
     $108.25 for 2018 and prices increase at 1.5% per year thereafter. The  
     engineered values disclosed may not represent fair market value.       
(10) Per share values calculated based on 56,760,307 Pan Orient Shares      
     outstanding at December 31, 2013 and 56,720,307 Pan Orient Shares      
     outstanding at December 31, 2012.                                      
(11) Pan Orient's 71.8% share as at December 31, 2013 of the "Best Case"    
     contingent resources of Andora, a private company as evaluated by      
     Sproule Unconventional Limited assessed at forecast crude oil reference
     prices and costs. The reference price for crude oil per barrel (Western
     Canada Select WCS 20.5 API adjusted for quality and transportation in  
     Canadian dollars) is $77.81 for 2014, $75.02 for 2015, $75.29 for 2016,
     $85.36 for 2017, $86.64 for 2018, and prices for the reference price   
     (WCS) increase at 1.5% per year thereafter. Undiscounted future capital
     expenditures for Pan Orient's 71.8% share are estimated at $1,558      
     million. The engineered values disclosed may not represent fair market 
     value and there is no certainty that it will be commercially viable to 
     produce any portion of the resources.                                  
(12) Pan Orient's 71.8% share as at December 31, 2012 of the "Best Case"    
     contingent resources of Andora, a private company as evaluated by      
     Sproule Unconventional Limited assessed at forecast crude oil reference
     prices and costs. The reference price for crude oil per barrel (Western
     Canada Select WCS 20.5 API adjusted for quality and transportation in  
     Canadian dollars) is $69.33 for 2013, $74.57 for 2014, $73.21 for 2015,
     $80.17 for 2016, $81.37 for 2017, and prices for the reference price   
     (WCS) increase at 1.5% per year thereafter. Undiscounted future capital
     expenditures for Pan Orient's 71.8% share were estimated at $1,673     
     million. The engineered values disclosed may not represent fair market 
     value and there is no certainty that it will be commercially viable to 
     produce any portion of the resources.                                  
(13) In March 2014, the 3% gross overriding royalty ("GORR") on a portion of
     the non-owned working interests in 12 sections of the Central Block and
     24.5 sections of the North Block was repurchased by a joint venture    
     partner for $2.7 million. The net present value before tax of the      
     Working Interest "Best Case" contingent resources, excluding the GORR, 
     at December 31, 2013 attributed to Pan Orient's 71.8% share is $345.6  
     million (discounted at 10%) and $83.5 million (discounted at 15%). The 
     net present value after tax of the Working Interest "Best Case"        
     contingent resources, excluding the GORR, at December 31, 2013         
     attributed to Pan Orient's 71.8% share is $220.4 million (discounted at
     10%) and $20.9 million (discounted at 15%).                            
(14) At December 31, 2013 Concession L53/48 in Thailand consisted of 1,959  
     square kilometers of lands of which 14 square kilometers associated    
     with the L53-A and L53-D fields are held through production licenses   
     (with a 20 year primary term plus an additional 10 year renewal period 
     that can be applied for) and 1,945 square kilometers of exploration    
     lands. The original term of the exploration lands ended on January 7,  
     2013 and the Company has renewed the exploration period for a further  
     three years to January 7, 2016. The renewal included a relinquishment  
     of 25% of Concession lands and new commitments including a 3D seismic  
     survey and three exploration wells with a stated commitment of US$2.6  
     million which were completed in 2013. Subsequent to December 31, 2013, 
     the Company obtained approval from the Government of Thailand for the  
     L53-G production license of 6.29 square kilometers and the associated  
     production environmental impact assessment.                            
(15) Pursuant to the Concession L45 Farm-in Agreement, Pan Orient has earned
     a 20% interest in Concession L45 at December 31, 2013 for the          
     completion of seismic acquisition and processing. Pan Orient has       
     elected not to drill the additional two wells to earn a further 40%    
     interest, however, Pan Orient is registered with the government of     
     Thailand as holding a 60% interest in the L45 Concession. The L45      
     Concession is expected to expire on April 27, 2014. The Company has    
     accrued $0.5 million as at December 31, 2013 for expected unfulfilled  
     commitments that will be payable to the Government of Thailand upon the
     expiration of the Concession based on the 60% registered interest.     
(16) Pan Orient's share of commitments in Indonesia reflect amounts to be   
     paid by Pan Orient, including carried interest partners (3% for        
     Citarum, 23% Batu Gajah and 23% South CPP). Commitments for a          
     Production Sharing Contract ("PSC") in Indonesia include the completion
     of a work program as well as the Company's estimated amount of the     
     expenditure. Financial commitments as provided above represent         
     management's assessment of the costs of the work program required under
     the initial 3-year firm commitment exploration period of the PSC. The  
     work program commitment is based on the original contract and timing is
     subject to government approval. With respect to Citarum, Batu Gajah and
     South CPP PSCs, extension of this initial exploration period has been  
     agreed to with the Government of Indonesia (GOI) to the dates indicated
     above. If Pan Orient exercises its options to continue beyond the      
     initial exploration period, additional commitments will be determined  
     on a year-by-year basis through submission of a work program and       
     approval from the GOI. Although extension of the exploration period is 
     a departure from the original contract, it is considered standard      
     practice in Indonesia.                                                 
(17) The Company believes that it has satisfied the Citarum PSC commitment  
     for the two wells with the drilling operations of the Jatayu-1 and     
     Cataka-1A wells, however this has not been finalized with the GOI and  
     the GOI may have a different interpretation of the requirement.        
(18) The Company has decided to relinquish the South CPP PSC. As part of the
     relinquishment, the Company is required to pay the GOI for the         
     unfulfilled commitments. The Company has accrued $2.7 million as at    
     December 31, 2013 for the estimated unfulfilled commitments for the    
     drilling of an exploration well.                                       
(19) The Company submitted an application to the GOI to voluntarily         
     relinquish approximately 3,243 square kilometers of the East Jabung    
     PSC's offshore area and this voluntary relinquishment has not yet been 
     finalized with the GOI. The result of the relinquishment does not      
     impact the PSC's onshore exploration activities.                       
(20) The Company has applied to extend the East Jabung PSC's work program   
     commitments to November 2015. The extension has not yet been approved  
     by the GOI. Work program commitments for other PSCs have been          
     successfully negotiated in the past and management has no reason to    
     believe that this application will not be approved.                    
(21) Tables may not add due to rounding.                                    

To view a map and table associated with this release, please visit the following link: http://media3.marketwire.com/docs/939388_image.pdf

Contacts:
Pan Orient Energy Corp.
Jeff Chisholm
President and CEO (located in Bangkok, Thailand)
[email protected]

Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
(403) 294-1770

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To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices t...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.