Pensana Regulatory News (PRE)

12 Oct 2005 07:00

Pan Andean Resources PLC12 October 2005 Pan Andean Resources plc Production update Pan Andean Resources (AIM: PRE), the oil and gas explorer and producer in SouthAmerica and the Gulf of Mexico, is pleased to provide an update on productionfacilities in the Gulf following tropical storm Rita. • The gas production platform on High Island 52 and the High Island 30 oil platform received minimal damage • The Gryphon platform on High Island 52, the source of the Pan Andean royalty, is reported to be intact • As far as is ascertainable, pipelines to shore are intact • The gas/oil gathering facilities being installed on High Island 24 are reported to be safe • The onshore facility in Johnson Bayou, Louisiana, which gathers and distributes the gas from a number of offshore platforms including High Island 52 and Gryphon was flooded and damaged. It may not be back in operation before year end The net effect of the storm is that Pan Andean production facilities are intactbut our monthly income from offshore Texas averaging $200,000 US a month will bedeferred for at least 3 months. It is also foreseeable that the restart of oilproduction on High Island 30 will be further delayed as lift boats and crewboats are diverted to emergency situations. Jim Finn, Director, responsible for US operations, commented: "Fortunately for Pan Andean, damage to our facilities is minimal. The deferralof some revenue from our offshore facilities for three or four months is anegative but, given the extraordinary high gas prices which are likely to lastwell into next year, we will quickly recover our losses. Meanwhile income from our onshore Texas production is more than sufficient tocover ongoing costs." Contacts: Pan Andean Resources Jim Finn +353 1 8332833 Bell Pottinger Corporate & Financial Nick Lambert +44 (0) 7811 358 764 Rowan Dartington & Co. Limited Barrie Newton +44 (0) 117 933 0011 This information is provided by RNS The company news service from the London Stock Exchange