Business
Re Contract
Re Contract.
About this update from Pensana Plc
[{"type":"text","content":"\n Pan Andean Resources PLC\n05 November 2007\n\n PAN ANDEAN RESOURCES PLC\n\n Pan Andean is an oil and gas producer and explorer in South America\n and the Gulf of Mexico\n\n\n Pan Andean Awarded Antorcha Exploration Block in Colombia\n\n\n\nHighlights\n\n\n\nO Pan Andean awarded exploration block in Colombia\n\n\n\nO First operational project in country\n\n\n\nO Highly prospective block:\n\n\n\no Adjacent to two producing fields - on matching geological trend\n\no Studies suggest there could be 1 to 2 billion barrels of oil equivalent\nin place (Stock Tank Original Oil In Place (STOOIP)) / 100 to 300 million\nbarrels of oil equivalent (boe) recoverable reserves\n\n\n\nO Fast track programme to include localised seismic and the drilling of one\nwell\n\n\n\nPan Andean, the Anglo Irish, AIM listed oil and gas producer (AIM: PRE) is\npleased to announce the signing of an exploration and production contract with\nthe Agencia Nacional de Hydrocarburos (ANH), Colombia's resource management\nagency, to explore the 35,000 hectare Antorcha block located in the prolific\nMiddle Magdalena Basin. Pan Andean holds a 100% interest in the block.\n\n\n\nThe Antorcha block is located up dip of existing heavy oil producing fields, the\nVelasquez-Palagua field with more than 300 million barrels of oil reserves, and\nthe Teca-Cocorna-Nare-Jazmin heavy oil field with more than 1,000 million\nbarrels of oil in place. The Antorcha block is thought to have the same\npetroleum geology as adjacent producers.\n\n\n\nPreliminary studies suggest significant undiscovered heavy oil potential at\nshallow depths of less than 2,000 feet. Between 1 and 2 billion barrels of heavy\noil in place could exist on the block with 100 to 300 million barrels of\nrecoverable reserves, using parameters of nearby fields i.e. porosity 20 - 25%,\noil saturation 60%, average net oil thickness of 100 - 200 feet, recovery factor\nof 10 - 15%. Expected crude quality could be in the range of 10degrees to 20\ndegrees API.\n\n\n\nThe block has little seismic coverage, with only the tails of 5 seismic lines.\nNine stratigraphic wells were drilled by Texaco in the 1950's and another three\nwells were drilled during the 1980's. Several of these found heavy oil shows,\nand some were considered as potential producers. However, low oil prices then\nprevailing, early technology, the oil gra...