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From: largeinvest	6/15/2012 3:07:18 PM
	of 228197

POE closes transaction Significantly lowers the risk as the deal has closed. A reminder of the trade idea here…….. Pan Orient (POE, SO57/FD60, ~Cash post asset sale ~$190m, Mkt cap $190, no debt) Pan Orient is an EP company with operations in Thailand and Indonesia. The company recently announced as asset sale of the bulk of their Thailand assets leaving the company with ~ $190m of cash and 1500 boepd of production, and lots of high impact exploration. Highlights: ? The company plans a special dividend of ~$1/share, this will allow it to retain ~2-3 years for capex which allows for appraisal drilling assuming success on exploration and a contingency. ? 2012 capex ~$60m will be somewhat dependent on exploration success and production will CF ~$30m (@$85 Brent), leading to a $30m burn for the year. ? The company will therefore be left with ~$160m of cash at the end of the year pricing the company at 1xEV/DACF on 2012. 2012 Capital Program (For period after Sale Completion) Thailand (Post Sale Completion) -5 development wells -4 contingent exploration wells -$8.5MM capital (firm) -$6.8MM capital (contingent) Indonesia -5wells (100% exploration) -400 km2 3D seismic -250 km 2D seismic -$35.8MM capital Canada -$0.6MM operations & overhead