Pan Andean Resources PLC
18 August 2006
Pan Andean is an oil and gas producer and explorer in South America and
the Gulf of Mexico
Pan Andean Resources plc
Directorate Change and Operational Update
Highlights:
> OPEC Principal Oil Supply Analyst Ivan Sandrea joins the board
> Work commences on Peruvian Operations
> Potentially positive political movement in Bolivia
> Preliminary assessment of Iranian exploration target
The directors of Pan Andean Resources (AIM:PRE) are delighted to welcome Ivan
Sandrea to the board of directors. Ivan is the Principal Oil Supply Analyst at
the Organisation of Petroleum Exporting Countries (OPEC). He was formerly
Associate Vice President of Oil & Gas at Merrill Lynch in London. An
exploration geologist and Venezuelan national, Ivan Sandrea has also worked with
BP Exploration International in Egypt, Norway and Venezuela.
Pan Andean Begins Work in Peru
Following the signing of the Contract for Lot 114, covering 770,000 hectares in
the Central Ucayali Jungle, Pan Andean immediately began to work towards the
goal of early discovery of economic reserves of oil.
Towards this end, we have obtained from the Peruvian state oil company
Perupetro, the digital tapes including approximately 2,000 kilometers of seismic
data.
Where appropriate, these data will be reprocessed and re-interpreted. Work
required to confirm the geographic coordinates of the original seismic lines
will be completed by end November.
Together with our technical partners, Compania Consultora de Petroleo, we have
begun the evaluation work required to identify the best drill locations.
Simultaneously, Community Relations efforts are underway. In accordance with
Peruvian law, we are already preparing for the required Community Workshops.
Workshops will be held during the month of October at the towns of Masisea and
Iparia, with over 200 community leaders from throughout the area expected. At
each presentation, Pan Andean and Perupetro, on behalf of the Peruvian
Government, will outline its plans and general work program for Lot 114.
We are finalising terms of reference for the Environmental Impact Study. The
scope of study will cover the first four well locations, any required seismic
work, the access road and regional work covering the entire Lot 114. The study
will begin in October and should be completed by January 2007.
Field Geological Work will commence when the environmental permits are in place,
probably after the rainy season ends in 2nd quarter 2007.
Bolivian update
The board has noted that the Bolivian authorities have postponed the mooted
nationalization of the oil & gas sector, reportedly due to lack of resources
including compensation funds.
Iranian update
Progress is being made toward Pan Andean's goal of entering the Iranian oil and
gas sector. The Company is at a preliminary stage in assessing a potential
exploration project.
DAVID HORGAN, Pan Andean's Managing Director, commented:
'The addition of Ivan Sandrea to the board is a significant development for Pan
Andean, boosting our hydrocarbon technical and financial experience. As a
Venezuelan national, as well as a technically and financially expert oil and gas
executive, Ivan brings unique insight into how best to work with the new
popularly elected governments in Latin America.
We are watching developments in Bolivia as they unfold. Despite political
turbulence, Bolivia has over 50 trillion cubic feet of gas reserves and some of
the world's most prospective gas acreage. Pan Andean takes a positive attitude
to the electoral outcome and is determined to work with local people and
authorities. We will be part of the solution, rather than part of the problem.
In Peru we will drive forward our exploration projects as fast as possible
whilst we will continue to press our case with the Iranian oil authorities.'
For further information please contacts:
David Horgan, Managing Director + 353 1 8332833
College Hill
Paddy Blewer +44 (0) 20 7457 2020
Corporate Synergy Plc
Ian Rice +44 (0) 117 933 0020
This information is provided by RNS
The company news service from the London Stock Exchange