7th Aug 2008 07:00
7th August 2008
Danbury Dome Update
> Exploration drilling to commence within 30 days on Danbury Dome prospect
> Pan Andean has a 20% free carried interest
> Joint venture with three US Companies. Well cost $5.2 million
Pan Andean (AIM:PRE), the AIM listed oil and gas producer, is pleased to announce that drilling of the Vieman No.1 well on its Danbury Dome leases, onshore Texas, will commence within approximately 30 days. The drill site location is currently being constructed and the drilling rig is scheduled to move to the site later this month.
The well, costing $5.2 million will take approximately 45 days to drill to a target depth of 13,500 feet. The prospect is defined by 3-D seismic data at depths between 13,000 feet and 13,500 feet and is estimated to contain 28 billion cubic feet of gas.
A consortium of North American companies has been formed to drill Danbury Dome. Pan Andean will have a 20 per cent free carry after pay-out following commercial discovery. In addition, Pan Andean will participate for an additional 15 per cent. This will give Pan Andean a net 31.25 per cent interest if this well is a discovery. The well will be drilled and operated by Turnkey E&P Corporation.
Commenting, David Horgan, Managing Director of Pan Andean Resources said;
"High gas prices in the USA have transformed the appeal of what were once considered risky exploration projects. In a world beset with limited rig availability and resource nationalism, it is a delight to re-discover the ease of drilling onshore Texas. Excellent infrastructure is already in place. Legal title and fiscal terms are certain. There are no material environmental delays or community issues. The local market is gas hungry. Any discovery will be brought into production quickly."
This announcement has been approved by Ivan Sandrea, Director, Pan Andean. Mr. Sandrea has more than 10 years of international E&P experience.
Contacts:
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Pan Andean |
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David Horgan, Managing Director |
+ 353 87 292 3500 |
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John Teeling, Chairman |
+ 353 1 833 2833 |
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College Hill |
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Paddy Blewer |
+44 (0)20 7457 2020 |
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Nick Elwes |
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Blue Oar Securities Plc |
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John Wakefield |
+44 (0)117 933 0020 |
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Simon Moynagh |
www.panandeanresources.com
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