Pan Andean Resources PLC
13 November 2007
Pan Andean Resources Plc
Pan Andean is an oil and gas producer and explorer in South America
and the Gulf of Mexico
13th November 2007
Production Start Up at High Island 52
Highlights:
• Production start up on High Island 52 in the Gulf of Mexico
• Initial production of 5 million cubic feet of gas per day
• Production rates expected to rise in the future
• Revenue royalty of 2.15% to Pan Andean
• The platform and abandonment liability passed to Phoenix Exploration
Pan Andean Resources, the Anglo/Irish oil and gas producer (AIM:PRE) is pleased
to confirm the start up of production of the Phoenix Exploration ('Phoenix')
well on High Island 52 in the Gulf of Mexico. Initial production rates are 5
million cubic feet of gas a day, but this is expected to rise as the operator
familiarises himself with the reservoir.
Pan Andean holds a 2.15% revenue royalty on production from this well and any
others to be drilled by Phoenix on High Island 52.
Pan Andean has also passed ownership of the platform on High Island 52 to
Phoenix who have also assumed all abandonment liabilities estimated at $6m (Pan
Andean's previous liability was 50%).
John Teeling, Chairman, commented:
'This is a great deal for all parties concerned. Pan Andean gets immediate
revenue, an exit from heavy liabilities and an interest in future drilling.
Phoenix, who were successful with their first well, get a valuable asset with
production, revenue and improved prospectivity on the block. I am very hopeful
that drilling of deeper targets on the block will occur in the near future.'
Contacts:
Pan Andean
David Horgan, Managing Director + 353 87 292 3500
John Teeling, Chairman + 353 1 833 2833
College Hill
Paddy Blewer +44 (0)20 7457 2020
Nick Elwes
Blue Oar Securities Plc
John Wakefield +44 (0)1179 330020
Simon Moynagh
www.panandeanresources.com
This information is provided by RNS
The company news service from the London Stock Exchange VGNZM