Pensana Regulatory News (PRE)

28 Mar 2006 07:00

Pan Andean Resources PLC28 March 2006 GULF OF MEXICO UPDATE * Successful well drilled on High Island 52 * Service boat secured to complete refurbishment of High Island 30 pipelines Pan Andean plc, the US oil and gas producer, (AIM:PRE) is pleased to announcethat a third well has been successfully drilled by Gryphon Exploration on HighIsland 52. Production will commence in the near future at a rate of 20 million cubic feetof gas a day. The Pan Andean royalty of 1.3% on this production is worth atcurrent prices over $600,000 a year. The company has been informed by Sterling Exploration our partners, on HighIsland 30 (Pan Andean 62.9%), that we are next in line to obtain a service boatwhich is currently working for Chevron. Once on site, refurbishment of thepipelines and pumping facilities are expected to take one month. Prior to therefurbishment, High Island 30 was producing 300 barrels of oil a day. Theimprovements were necessary to maintain this level of production. Gas production continues from our onshore Texas, Vrazel and Zachry wells. This release has been approved by James Finn Director. Further information: John Teeling Tel:+353 1 833 2833Ian Rice Tel:+44 117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange