Summary of PACIFIC ASIA PETROLEUM INC

ITEM 7.01 REGULATION FD DISCLOSURE

On July 7, 2009, Pacific Asia Petroleum, Inc. (the "Company") issued a press release announcing the entry by its China affiliate, Inner Mongolia Sunrise Petroleum Co. Ltd. ("Sunrise"), into a Letter of Intent with Handan Hua Ying Company Limited ("Handan"), relating to the acquisition of a 49% ownership interest in the Handan Chang Yuan Natural Gas Company, Ltd. ("HGC") held by Handan. HGC owns and operates gas distribution assets in and around Handan City in the Hebei Province of the People's Republic of China. Pursuant to the Letter of Intent, the Company will continue with its final legal and financial due diligence with a goal of entering into a final sale and purchase agreement before the end of the year, and will also enter into negotiations with HGC with the intent of creating a joint venture to operate and manage the HGC business. The Letter of Intent supplements the Letter of Intent entered into by the Company in November 2008 covering the same gas distribution assets. A copy of the Company's press release, dated July 7, 2009, announcing these matters is furnished herewith as Exhibit 99.1.

The information contained in Item 7.01 to this current report on form 8-K and the exhibit attached hereto shall not be deemed to be "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information or such exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth in this Item 7.01 or exhibit 99.1 to this form 8-K shall not be deemed an admission as to the materiality of any information in Item 7.01 to this report on form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.