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Pan Orient Energy agreed to sell 50 percent of its subsidiary Pan Orient Energy Siam to Thailand-based Sea Oil Public Company for $42.5 million in cash.

The sale price includes a working capital adjustment of $2.4 million.

Pan Orient Energy Siam holds Pan Orient’s 100 percent interest in Concession L53/48 in Thailand and will remain as the operator.

Calgary-based Pan Orient expects net proceeds, after closing adjustments, a 3 percent finder’s fee, tax and other costs, will be about $40.9 million.

Pan Orient Energy Siam holds a 100 percent interest in Concession L53/48 in Thailand. Pan Orient will retain operatorship of the concession.

The concession covers 756 square miles located 37 miles west of Bangkok.

The transaction is anticipated to close on or about January 12, 2015.

A drilling program for two appraisal wells and one exploration well in Concession L53/48 is expected to start shortly after closing in January 2015.

“Pan Orient continues to make significant progress towards the corporate initiative of strengthening the Company’s balance sheet and de-risking its portfolio of assets,” Pan Orient president and CEO Jeff Chisholm said.