Pensana Regulatory News (PRE)

1 Dec 2005 07:30

Pan Andean Resources PLC01 December 2005 PRODUCTION UPDATE Highlights • Gas production restarts in Gulf of Mexico • Re-equipping of oil producing platform nears completion Pan Andean, the AIM listed oil and gas producer (AIM: PRE), is pleased toannounce that, following Hurricane Rita, gas production has recommenced from theGryphon field on block High Island 52 in the Gulf of Mexico. Production iscurrently at the rate of 30 million cubic feet a day. Pan Andean has a royaltyon production worth in excess of a net US$140,000 a month at current gas prices. The re-equipping of the oil producing platform on High Island 30 (Pan Andean62.9%) is complete. Construction of connecting pipelines is also complete. Gascompression and transmission facilities to shore are being installed on aplatform on block High Island 24. Completion date is late December whenstart-up is expected. Prior to shutdown High Island 30 was producing 300barrels of oil per day. John Teeling, Chairman, commented. "This is good news. We were lucky to escapevirtually unscathed from the ravages of Hurricane Rita. Our current main sourceof offshore income is now back in production while we are expecting a lateDecember re-start for our oil producer. Current high oil and gas prices arevery beneficial to Pan Andean. Developments in our onshore acreage andelsewhere will be reported on in the near future." Pan Andean is an oil and gas producer onshore and offshore Texas as well as inBolivia. Contacts: Jim Finn + 353 1 8332833 Bell Pottinger Corporate & FinancialNick Lambert +44 7811 358 764 This information is provided by RNS The company news service from the London Stock Exchange