February 11, 2010 (FinancialWire) — Pacific Asia Petroleum, Inc. (AMEX: PAP) said it has entered into definitive agreements with certain accredited investors to sell in a registered direct offering an aggregate of five million shares of its common stock at a price of $4.00 per share for aggregate gross proceeds of $20 million.

In addition, the company will, at closing, issue to the investors two series of warrants. The series A warrants shall provide the Investors the right to purchase up to an additional two million shares, in the aggregate, with an exercise price equal to $4.50. The warrants will be exercisable beginning six months following the closing for a period of 30 months.

The series B warrants shall provide the investors the right to purchase up to an additional 2 million shares, in the aggregate, at the common stock offering price, or $4 per share, which warrants shall be exercisable immediately until November 1, 2010.

If fully exercised, the series A warrants and series B warrant would result in additional gross proceeds to the company of $17 million.

New York-based Pacific Asia Petroleum is engaged in the development, production and distribution of oil and gas. The company controls the rights to gas acreage under contract in China and is a strategic partner with several energy companies in oil fields in China.

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