Pan Orient Energy Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company reported oil revenue, before royalties and transportation expense of CAD 7.81 million against CAD 18.1 million a year ago. Funds flow from operations was CAD 3.35 million or CAD 0.06 per basic and diluted share against CAD 13.17 million or CAD 0.23 per basic and diluted share a year ago. Net loss attributable to common shareholders was CAD 1.63 million or CAD 0.03 per basic and diluted share against net income attributable to common shareholders of CAD 3.9 million or CAD 0.07 per basic and diluted share a year ago. A net loss was primarily attributable to the foreign exchange loss on the conversion of the proceeds of the Thailand asset sale from US dollars to Canadian dollars and stock-based compensation. Capital expenditures were CAD 12.021 million against CAD 15.4 million a year ago.

For the nine months, the company reported oil revenue, before royalties and transportation expense of CAD 46 million against CAD 55.1 million a year ago. Funds flow from operations was CAD 29 million or CAD 0.51 per basic and diluted share against CAD 38.81 million or CAD 0.71 per basic and diluted share a year ago. Net income attributable to common shareholders was CAD 85.8 million or CAD 1.51 per basic and diluted share against CAD 12.42 million or CAD 0.23 per basic and diluted share a year ago. Capital expenditures were CAD 57.472 million against CAD 57.831 million a year ago.

The Board of Directors of the company announced that Mr. Gerry Macey, a director of Pan Orient since 2005, has been appointed Chairman of the Corporation. Mr. Macey possesses an exceptional track record of exploration success for the period he was in charge of the international and frontier exploration efforts of Encana Corporation and its predecessor, PanCanadian Energy Corporation. In addition to his role of as Chairman of Pan Orient, Mr. Macey is a member of the Gran Tierra Energy Inc. Board of Directors and was a member of the Board of Directors of Addax Petroleum Corporation and Verenex Energy Inc.

The company expects Thailand production to exit 2012 at between 1,400 to 1,600 BOPD.

The Board of Directors of Pan Orient Energy Corp. has approved a firm capital program in Indonesia and Thailand for the 13 month period of December 1, 2012 to December 31, 2013 of CAD 73.2 million which includes the drilling of four development /step out appraisal wells and six exploration wells in addition to 660 square kilometers of 3D seismic and 657 kilometers of 2D seismic. This significant seismic expenditure will result in the fulfillment of the firm seismic commitments on all the Indonesian PSC's, cover entirely the prospective portions of the Thailand Concession L53 and will set the foundation for an active 2014 drilling program.