Business
Half Yearly Report
Half Yearly Report.
About this update from Pensana Plc
[{"type":"text","content":"\n RNS Number : 2656E Pan Andean Resources PLC 17 December 2009 \n \nInterim Results for the Six Months Ended 30th September 2009\n\nAs I write this, Pan Andean is subject to an offer which, if successful, will result in the Company delisting from AIM. Let me remind shareholders of the terms of the offer.\n\nPetrominerales, a Canadian listed oil and gas producer, focused on South America, is offering:\n\n\n\n\n●\n\n\n15p cash for each Pan Andean share, plus\n\n\n\n\n●\n\n\nOne Hydrocarbon Exploration Co Ltd share for every one Pan Andean share.\n\n\n\n\n\nHydrocarbon Exploration is currently owned 100% by Pan Andean and holds the Company's Bolivian and American assets. It will be spun off to existing shareholders on a one for one basis. \n\nIn effect, existing Pan Andean shareholders are being offered 15p a share cash for the Peruvian and Colombian exploration assets; whilst retaining the same percentage in Hydrocarbon Exploration as they currently own in Pan Andean. Shareholders will continue to have the exposure to the potential upside in the US and Bolivian assets. \n\nIn recent years, the directors of Pan Andean have found it difficult to persuade investors of the value in our assets. Our share price lacked the advances made by a peer group. With a large shareholder base of over 6,000 shareholders, many of whom invested years ago at higher prices, there was always a seller. In recent years, we have been one of the few profitable cash generative junior oil companies on the AIM. We assembled a top class ground portfolio in Peru, which we farmed out on good terms; despite this our share price still lagged. \n\nWe had high hopes for our heavy oil block in Antorcha, Colombia, yet we failed to get a satisfactory farm out. The option of drilling ourselves was mooted strongly by some, but while we could have drilled one hole from our existing resources, a five hole programme would cost in the region of US$10 million. This would have required a deeply discounted funding, diluting existing holders. The final straw was a collapse in the US gas prices, which saw a dramatic drop in our income. As you will see from the accompanying financials, we report a small loss for the past six months - the Company's first loss in a decade. \n\nWith great reluc...