Last checked at 22 Oct 2008 12:41
22nd October 2008
Pan Andean Resources Plc
Highlights of Chairman's Comments at the
Pan Andean Resources AGM
London, Wednesday 22nd October 2008
In these very turbulent times, it is a pleasure to present a company showing profits, cash, cash flow and production.
Pan Andean is one of the few AIM listed oil and gas producers / explorers with production, profits and cash
Our latest drilling, the deep wildcat Danbury Dome well, onshore Texas, is making good progress to reaching the target depth of 13,500 feet. The target is gas in a substantial structure
The highlights of the past year were undoubtedly the successful farm-outs of our Peruvian blocks and the acquisition of the Antorcha block in Colombia
CEPSA of Spain and Reliance Industries of India, two world class multinationals, are now our partners on blocks 114 / 131 and 141 respectively in Peru. Pan Andean has a 30 per cent interest and a full carry through the first well in each case and a 50 per cent carry in the second. In addition, Pan Andean received $3 million in back costs.
In recent weeks we have been awarded Block 161, in the Ucayali basin in Peru
The Antorcha block in Colombia, 100 per cent Pan Andean, is located adjacent to proven fields and infrastructure and is thought to be highly prospective. The recently completed 60km seismic programme has identified drillable structures of significant size
The targets are shallow, and subject to rig availability, drilling could begin in early 2009
There is interest from outside parties in participating in Antorcha
Bolivia remains a no go area for investment but the potential of our El Dorado gas discovery is recognised and development proposals are being examined
The US remains the cash engine of Pan Andean, generating revenue mainly from offshore oil production and from royalties both onshore and offshore
Hurricane Ike caused limited damage to our platforms but onshore processing facilities received water damage. We estimate that we will lose approximately two months revenue before production is back up and running
Falling oil prices and a frozen stock market are already generating opportunities. Our profits, cash and projects are attractive to many junior oil ventures. We see a flow of prospects and projects. We can afford to be selective, looking to create the most value for our shareholders
All resolutions were passed at the meeting
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)117 933 0020 |
| Simon Moynagh |
www.panandeanresources.com