6th Nov 2006 07:00
Pan Andean Resources PLC06 November 2006 FARM-OUT AGREEMENT ON GULF OF MEXICO BLOCK Pan Andean Resources plc, the AIM listed oil and gas producer (AIM : PRE), andtheir partners Sterling Energy Inc. have signed a Farm-out Agreement on theirHigh Island 52 Block with an American company Phoenix Exploration Company LP.(Phoenix) The High Island 52 Block is located in Federal Waters in the Gulf ofMexico. Under the terms of the agreement Phoenix have the right to drill a test wellwithin the next four months. If the well is successful, Pan Andean will retain a2.15% Royalty Interest on production. Pan Andean is currently earning in excess of US$ 100,000 per month from theGryphon Royalty on the North-East quarter of the High Island 52 Block. This willnot be affected by the Farm-out Agreement with Phoenix. Pan Andean and Sterling,who share the block 50:50 currently produce about 400,000 cubic feet of gas aday from one well. Elsewhere in the Gulf of Mexico, Pan Andean receives US$5,000 a month from aRoyalty Interest on the Eugene Island Block. Block High Island 30L is expectedto restart production by yearend of 300 barrels of oil per day when currentrefurbishment of pipeline and pumping systems are completed. Pan Andean Resources plcJim Finn +353 1 833 2833 Corporate Synergy PlcIan Rice +44 (0) 117 933 0020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Pensana