Pensana Plc Regulatory News (PRE)

1 Nov 2007 12:21

Pan Andean Resources PLC01 November 2007 PAN ANDEAN RESOURCES PLC Pan Andean is an oil and gas producer and explorer in South America and the Gulf of Mexico Highlights of the Chairman's Comments Delivered at the Pan Andean AGM 1st November 2007, London The redirection of Pan Andean is almost complete and benefits should begin toflow in the short term. 1. Pan Andean has three sources of income in the Gulf of Mexico. • The Gryphon royalty on Block HI 52 produces a royalty of over $150,000 a month. • The Phoenix takeover of the platform on HI 52 is complete and the commencement of production on their shallow gas discovery is expected in November 2007. Pan Andean has a 2.15% revenue royalty expected to yield $50,000 a month. • Oil and gas production from our 62.9% owned, Hunt Oil partnered Block HI 30, is at the commissioning stage. Hunt Oil, who are the operators, expect production to flow at a daily rate in excess of 300 barrels. Current and projected oil prices make this very attractive. 2. Onshore US activities continue to provide about $15,000 of net incomea month. We are currently drilling the Estaban field (25% Pan Andean). 3. In Peru, Pan Andean is very active and now holds three largeexploration blocks 114, 131 and 141. • We have completed our environmental work on 114 and are in advanced discussions with a potential partner. • The two blocks awarded to Pan Andean in 2007 will have a formal signing ceremony in late November. We are working on the available data and have again had interest from potential partners. 4. In Colombia, we are making considerable progress. We are assessingnumerous projects in highly prospective areas. We have applied for one blockunder an exclusive basis and hope to update the market in the very near future. 5. In Bolivia, our oil and gas operation in Monteagudo (Petrobras 20%,Repsol 50%) continues to operate despite political and economic uncertainty. • The El Dorado gas discovery (BP 90%) increases in strategic importance as the demand for gas in the Southern Cone outstrips supply. Pan Andean is cash positive and cash generative with no debt. The Phoenix dealin the Gulf eliminates an abandonment liability of $6m plus. We will use thecash being generated by our Gulf operations to pursue our high potential, buthigher risk exploration ventures in South America and elsewhere. All resolutions were passed at the meeting. Contacts: Pan AndeanDavid Horgan, Managing Director + 353 87 292 3500John Teeling, Chairman + 353 1 833 2833 College HillPaddy Blewer +44 (0)20 7457 2020Nick Elwes Blue Oar Securities PlcJohn Wakefield +44 (0) 1179 330020Simon Moynagh www.panandeanresources.com This information is provided by RNS The company news service from the London Stock Exchange