Drilling Report

RNS Number : 5843K

Pan Andean Resources PLC

22 December 2008

 

Pan Andean is an oil and gas producer and explorer in South America

 and the Gulf of Mexico

22nd December 2008

Danbury Dome Well Plugged

The testing of the Vieman No.1 well at Danbury Dome Texas has not produced commercial levels of gas. The Anomalina sands produced water and after initial gas flows the higher 'S' sands also watered out.

There were significant technical difficulties in drilling and testing the well. It proved impossible to reach the target depth of 13,500 feet. The partners have plugged the well while reviewing the data. An option to side track the well to reach the target depth is under consideration.

Pan Andean holds a 15 per cent interest rising to 30.25 per cent after payout. The well was drilled on a turnkey basis. Pan Andean's total cost is $500,000.

John Teeling, Chairman of Pan Andean Resources, commented;

'While the plugging of the Danbury Dome well is disappointing, Pan Andean remains cash generative and profitable and its Board considers that it remains very well positioned to take advantage of emerging opportunities.'

This announcement has been approved by Ivan Sandrea, Director, Pan Andean. Mr. Sandrea has more than 10 years of international E&P experience.

Contacts:

Pan Andean

David Horgan, Managing Director              + 353 87 292 3500

John Teeling, Chairman                             + 353 1 833 2833

College Hill

Paddy Blewer                                             [phone]

Nick Elwes

Blue Oar Securities

Nick Lovering                                             [phone]

Toby Gibbs

www.panandeanresources.com

 

END

 

 

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