Last checked at 19 May 2009 07:00
19 May 2009
Pan Andean Resources plc
("Pan Andean")
Seismic acquisition underway over Block 114 in the Peruvian jungle
Pan Andean Resources PLC ("Pan Andean") the AIM listed oil and gas producer focused on South America is pleased to announce that the work programmes on Peruvian Blocks 114 and 131 are advancing well. As established contractually, Pan Andean's 30% interest in both blocks, for the contracted work programme, is carried 100% through the drilling, testing & completion of the first exploration well and through 50% of the second well.
Block 114
Canadian contractor SAE has been selected to acquire 200km of seismic in the priority northern section of Block 114 in the Ucayali jungle of central Peru. This seismic is designed to confirm a prospect in the Tamaya area and optimise well location selection.
SAE are experienced in the logistical challenges of this jungle area, and have the necessary equipment in the field ready to start. The project is scheduled to start in June 2009 and be completed by November during the dry season.
This work will fulfil our work commitment for this second phase of the contract. The next phase of the work programme specifies an exploration well to a minimum depth of 2,850 metres or into the main Cushabatay Formation target of Cretaceous age.
Block 131
We are pleased to announce that the required phase 1 work programme in neighbouring jungle Block 131 has been completed. This included reprocessing of c. 500 km of 2D seismic, and a geological-geophysical evaluation of the block to define prospective areas or leads.
Environmental permitting proceeds well in Block 131, in anticipation of the 300km seismic acquisition programme required in the next phase. Geological field work has been carried out, which together with reprocessed seismic has revealed several new leads.
Seismic work should start by end 2009 with new seismic acquisition scheduled for mid 2010.
Community support for responsible development
Consultation with local communities and social work is an important part of the programme in both blocks. Medical supplies and services were provided free of charge to the Tamaya communities. School supplies and communications gear were provided free of charge to communities in the Rio Caco area.
This announcement has been approved by Ivan Sandrea, Director, Pan Andean. Mr. Sandrea has more than 10 years of international E&P experience.
Contacts:
| David Horgan, Managing Director | + 353 87 292 3500 |
| John Teeling, Chairman | + 353 1 833 2833 |
| Smith & Williamson Corporate Finance | |
| Nick Reeve | +44 (0) 117 376 2213 |
| Barrie Newton | |
| College Hill | |
| Paddy Blewer | +44 (0) 20 7457 2074 |
| Nick Elwes |
Notes to editors
Pan Andean was founded in 1988 as an oil & gas exploration and production ("E&P") company with a focus in South America. The group has assets in Bolivia, and Peru and important working interests and minority holdings in the United States in the Gulf of Mexico (offshore) and Texas (onshore). Profitable, cash generative and debt free, Pan Andean's strategy is to identify and access unique opportunities in frontier and established basins with transforming commercial potential.