Sea Oil Public Company Limited entered into an agreement to acquire 50% stake in Pan Orient Energy Ltd. from Pan Orient Energy Corp. for $42.5 million.

Sea Oil Public Company Limited (SET:SEAOIL) entered into an agreement to acquire 50% stake in Pan Orient Energy (Siam) Ltd. from Pan Orient Energy Corp. (TSXV:POE) for $42.5 million on November 5, 2014. The consideration also include the working capital adjustment for $2.4 million.

A $4 million break fee is payable by Sea Oil Public Company Limited if shareholders approval and financing not obtained. The transaction is subject to certain conditions including approvals from shareholders of Sea Oil Public Company Limited, third party and regulatory bodies. The transaction is also subject to obtaining financing as well as other customary closing conditions.

Sea Oil Public Company Limited's shareholder's meeting is scheduled for December 17, 2014. Sea Oil Public Company Limited's shareholder has approved the transaction. As of November 5, 2014, transaction is expected to complete on January 12, 2015.

As of January 13, 2015, additional time is required to satisfy the condition including Bank of Thailand approval for the transfer of funds. Both the parties have agreed to delay the closing of transaction for up to three weeks. As of February 2, 2015, Both the parties have satisfied the conditions.

Accordingly, $38.2 million wire transfer has been initiated along with additional $4 million break fee released from escrow and is being wired to the account of Pan Orient Energy Corp. Completion of transaction in combination with existing working capital, provides the corporation with substantial financial strength in an uncertain oil price environment.