Pensana Regulatory News (PRE)

13 Nov 2007 07:00

Pan Andean Resources PLC13 November 2007 Pan Andean Resources Plc Pan Andean is an oil and gas producer and explorer in South America and the Gulf of Mexico 13th November 2007 Production Start Up at High Island 52 Highlights: • Production start up on High Island 52 in the Gulf of Mexico • Initial production of 5 million cubic feet of gas per day • Production rates expected to rise in the future • Revenue royalty of 2.15% to Pan Andean • The platform and abandonment liability passed to Phoenix Exploration Pan Andean Resources, the Anglo/Irish oil and gas producer (AIM:PRE) is pleasedto confirm the start up of production of the Phoenix Exploration ("Phoenix")well on High Island 52 in the Gulf of Mexico. Initial production rates are 5million cubic feet of gas a day, but this is expected to rise as the operatorfamiliarises himself with the reservoir. Pan Andean holds a 2.15% revenue royalty on production from this well and anyothers to be drilled by Phoenix on High Island 52. Pan Andean has also passed ownership of the platform on High Island 52 toPhoenix who have also assumed all abandonment liabilities estimated at $6m (PanAndean's previous liability was 50%). John Teeling, Chairman, commented: "This is a great deal for all parties concerned. Pan Andean gets immediaterevenue, an exit from heavy liabilities and an interest in future drilling.Phoenix, who were successful with their first well, get a valuable asset withproduction, revenue and improved prospectivity on the block. I am very hopefulthat drilling of deeper targets on the block will occur in the near future." Contacts: Pan AndeanDavid Horgan, Managing Director + 353 87 292 3500John Teeling, Chairman + 353 1 833 2833 College HillPaddy Blewer +44 (0)20 7457 2020Nick Elwes Blue Oar Securities PlcJohn Wakefield +44 (0)1179 330020Simon Moynagh www.panandeanresources.com This information is provided by RNS The company news service from the London Stock Exchange