Last checked at 6 Mar 2009 07:00
Pan Andean Resources PLC
6th March 2009
Drilling update
Update on the Antorcha Block in Colombia
Pan Andean Resources plc ("Pan Andean"), the AIM listed oil and gas producer in the United States and South America, wishes to provide an update on activities on our Colombian oil play at Antorcha in the Central Magdalena Valley.
Because of the project's high potential, Pan Andean decided in 2008 to seek partners to drill the Antorcha block. Pan Andean had completed extensive geological work including 2D seismic, which confirmed our geological model and has identified suitable drill targets. A data room was opened in Bogota in November 2008. A significant number of companies obtained the data and detailed presentations and discussions occurred with six companies. The list has been refined and decisions continue. Environmental permitting is underway for 6 well locations. Drilling on Antorcha will take place in 2009.
David Horgan, Managing Director of Pan Andean Resources, commented;
"Despite the fall in oil prices and economic chaos worldwide, Colombia remains an attractive and prospective location for oil discoveries. Antorcha is a highly prospective block featuring oil seepages in an area producing 18° API oil. Identified targets are low cost to drill at 2,000 metres. Rigs and drill services are available. The area is accessible all year around, has excellent infrastructure and no serious security issues. We intend to finalise discussions with a partner in the near future and then move rapidly to a multi-hole drilling programme."
This announcement has been approved by Ivan Sandrea, Director, Pan Andean. Mr. Sandrea has more than 10 years of international E&P experience.
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
Nick Lovering +44 (0)20 7448 4400