Pan Andean is pleased to announce the spudding of an exploration well on our
Vrazel lease which is part of the Danbury Dome area onshore Texas.



The well has as targets three zones which may contain up to 7 billion cubic feet
of gas. At a cost of $1 million, the well will take 12 days to reach the target
depth of 9,200 feet and, if successful, can be tied in to existing pipelines
within three weeks. Pan Andean holds a 21 per cent interest in the project with
Houston Petroleum Inc, the majority partner.



Meanwhile, formal discussions continue in relation to the 75 billion cubic feet
target on our Danbury Dome leases. Pan Andean currently holds 100 per cent of
these leases and is examining proposals which may lead to a 20 per cent carry on
a $ 3 million 14,000 foot deep well.



John Teeling, Chairman commented, "Actions to develop our operations in the
highly prospective Danbury Dome area of onshore Texas continue to bear fruit.
Following the successful discovery on our, Zachery lease, I am very hopeful that
the Vrazel well will further enhance, not only our cash flow, but also the
potential and prospectivity of our 100 per cent owned Danbury Dome leases.

Curry,

What date did the drill start please?

trying to calculate the date they will announce the success, or otherwise, of this well.

TIA,

Andy.

If you only count weekdays, drill should hit target on thursday.

Curry,

Interesting, I wonder whether they have a 7 day a week shift operation, or only work on weekdays?

21.0 - 21.5

up 9% and looking like a breakout similar to AFD

The latest RNS sounds very promising - 10p rise in a day if they have a "hit" any offers ?


RNS Number:0767V Pan Andean Resources PLC 05 February 2004


Pan Andean Resources plc- Drilling Update


The Vrazel 2 well onshore Texas, in which Pan Andean has a 21.3 per cent. interest, is expected to reach target depth of 9,200 feet by Friday February 6. Significant gas shows have been encountered in the mud logs. It is anticipated that electric logs will be run over the coming days, with results available next week.

The chairman of Pan Andean John Teeling commented: "Drilling is on target and the presence of gas shows in the mud logs is very positive. Tests over the coming week will demonstrate whether or not we have a hit".

an Andean Resources PLC
30 June 2004


Pan Andean, the listed oil and gas producer, announces successful completion of
Drilling Onshore Texas


Pan Andean plc., explorers for and producers of oil and gas in South America and
in the U.S., is pleased to announce that the Vrazel No. 2 well in the Danbury
Dome area onshore Texas, is a commercial discovery expected to produce at a rate
of 1.9 million cubic feet of gas per day. Tie in to existing pipelines will be
completed within days. Pan Andean holds a 21% interest in this project.

John Teeling, Chairman said, 'Finally Vrazel is commercial. Drilling confirmed
the presence of a number of gas zones. Technical problems greatly delayed the
completion process, but now all is in place for commercial production. Current
gas prices make this a profitable venture for Pan Andean. Expected production
and cash flow from Vrazel complements our other successful producer in the area,
The Zachry - Korenek No. 1 discovery. These two discoveries bode well for the
forthcoming drilling program on our 100% owned properties in the Danbury Dome
area. Pan Andean expects to make an announcement specific to this venture in the
coming weeks.

Our offshore drilling program is also active. A rig is in place on our 50% owned
Hi Island A-68 Block in the Gulf of Mexico. I expect to announce the start up of
drilling within a few days'.

RNS Number:4082A
Pan Andean Resources PLC
02 July 2004

Drilling commences in the Gulf of Mexico


Pan Andean Resources plc, explorer for and producer of oil and gas in South
America and in the U.S announces that drilling has commenced on the 50% Pan
Andean owned 5,000 acre High Island A68 lease in the Gulf of Mexico, offshore
Texas. The well is located approximately 75 miles south east of Houston in less
than 100 feet of water. Drilling is expected to take up to 3 weeks.



Contacts:

David Horgan or Jim Finn, Pan Andean Resources - Tel.+353 1833 2833
Emma Kane - Chief Executive, Redleaf Communications - Tel.+44(0)207955 1410
Ian Rice - Rowan Dartington - Tel.+44(0)117 933 0020




This information is provided by RNS
The company news service from the London Stock Exchange
END

DRLKFLFBZDBBBBE

Price Information
Select from list...Share TradesCompany Map
Friday 02/07/04
Real time 1:11 PM Trade time 12:56 PM
Market Symbol PRE Exchange London Stock Exchange
Currency GBX Shares in Issue 119.168M


markets data
Current (p) 18.00 Best Bid (p) 17.50 P/E Ratio (x) 67.202
Change (p) 1.00 Best offer (p) 18.50 Div Yield (%) 0
Change (%) 5.88 Day high (p) 18.25 Market Cap () 21.45M
Last sale (p) 18.38 Day low (p) 17.00 52 week high (p) 23.35
Last close (p) 17.00 Day Volume 1,105,611 52 week low (p) 7.30


time mid price ( p ) day change ( p ) day change (%) share volume
08:00 17.00 0.00 0.00
08:30 17.25 0.25 1.47 145,845
09:00 17.25 0.25 1.47 15,000
09:30 17.25 0.25 1.47 123,590
10:00 17.75 0.75 4.41 65,000
10:30 18.00 1.00 5.88 115,789
11:00 18.00 1.00 5.88 12,887
11:30 18.00 1.00 5.88 5,000
12:00 18.00 1.00 5.88 410,000
12:30 18.00 1.00 5.88 167,500

Iraq's oil production has again been disrupted and Yukos who account for 20% of Russia's oil exports is on the brink of being declared bankrupt. This has all happened when demand for oil is at an all time high. India and China are both expanding rapidly and have added to the pressure on oil stocks. Terrorists have stepped up their attacks within Saudi Arabia and the USA is becoming convinced that the world is too reliant on Middle East oil supplies. As a result spot prices jumped again on Friday and seem set to go much higher. This may be bad for the world's economy but will focus attention on those companies that have most to gain, i.e. small to medium sized oil producers/ explorers. Which ones will rise the most is anyones guess, so spread your risk into PRE, EEN, CPI or whatever you may fancy. Good luck!

BACKGROUND FROM PRE'S WEBSITE

Pan Andean is an exploration and production company producing oil and gas in the US and in Bolivia as well as drilling for oil/gas in Bolivia.

Pan Andean was formed in 1988 to develop Bolivian Resources
Listed on the London Alternative Investment Market (AIM)
7,000 shareholders mostly British private investors
A market capitalisation of stg25 million.
The principal assets of the company are production in the Gulf of Mexico 30% of the producing Monteagudo field in Bolivia and 10% of the large gas find in El Dorado Bolivia.
Currently Pan Andean produces about 800 bbls oil a day and 8.5 mmcf gas a day.
El Dorado may contain up to 600bcf of gas.
Exploration opportunities exist on both the Monteagudo and El Dorado blocks.
The company is examining drilling and production opportunities in the US, Bolivia and elsewhere.

Sterling Energy PLC said it started drilling on the A5 ST (Sidetrack) well on its High Island A-68 lease in the Gulf of Mexico offshore Texas. The well is the first in a drilling programme planned to more than double production during the next 12 months from recent levels of about 11 mln cubic feet of gas equivalent a day.Drilling is expected to take up to three weeks.

Sterling Energy is the operator of the lease with a 50 pct holding, while
Endeavour Oil & Gas Inc, a unit of Pan Andean Resources PLC, also has a 50 pct
holding.

Pan Andean's High Island A68 well is a 4,000 foot well located in the shallow waters offshore the Gulf of Mexico. Pan Andean holds a 50% interest in this block.

The target is a 3 10 billion cubic feet (bcf) reservoir. Drilling will take 15 days. The estimated cost is $1.8 million

John Teeling, Chairman of Pan Andean Resources, said, "High U.S. gas prices make exploration attractive. In the coming weeks and months we are drilling a number of wells to exploit our U.S. properties. The High Island 68 well is low risk. We know the geology and we have the infrastructure in place. The target is 3 bcf of gas, but it could be greater."

Pan Andean Successfully Completes Texas Well
Pan Andean Wednesday, June 30, 2004


Pan Andean reports that the Vrazel No. 2 well in the Danbury Dome area onshore Texas, is a commercial discovery expected to produce at a rate of 1.9 million cubic feet of gas per day. Tie in to existing pipelines will be completed within days.

Pan Andean holds a 21% interest in this project.

John Teeling, Chairman said, "Finally Vrazel is commercial. Drilling confirmed the presence of a number of gas zones. Technical problems greatly delayed the completion process, but now all is in place for commercial production. Current gas prices make this a profitable venture for Pan Andean.

Expected production and cash flow from Vrazel complements our other successful producer in the area, The Zachry Korenek No. 1 discovery.

These two discoveries bode well for the forthcoming drilling program on our 100% owned properties in the Danbury Dome area.

Pan Andean expects to make an announcement specific to this venture in the coming weeks.

The company's offshore drilling program is also active. A rig is in place on our 50% owned Hi Island A-68 Block in the Gulf of Mexico. I expect to announce the start up of drilling within a few days". Pan Andean reports that the Vrazel No. 2 well in the Danbury Dome area onshore Texas, is a commercial discovery expected to produce at a rate of 1.9 million cubic feet of gas per day. Tie in to existing pipelines will be completed within days.

Pan Andean holds a 21% interest in this project.

John Teeling, Chairman said, "Finally Vrazel is commercial. Drilling confirmed the presence of a number of gas zones. Technical problems greatly delayed the completion process, but now all is in place for commercial production. Current gas prices make this a profitable venture for Pan Andean.

Expected production and cash flow from Vrazel complements our other successful producer in the area, The Zachry Korenek No. 1 discovery.

These two discoveries bode well for the forthcoming drilling program on our 100% owned properties in the Danbury Dome area.

Pan Andean expects to make an announcement specific to this venture in the coming weeks.

The company's offshore drilling program is also active. A rig is in place on our 50% owned Hi Island A-68 Block in the Gulf of Mexico. I expect to announce the start up of drilling within a few days". Pan Andean reports that the Vrazel No. 2 well in the Danbury Dome area onshore Texas, is a commercial discovery expected to produce at a rate of 1.9 million cubic feet of gas per day. Tie in to existing pipelines will be completed within days.

Pan Andean holds a 21% interest in this project.

John Teeling, Chairman said, "Finally Vrazel is commercial. Drilling confirmed the presence of a number of gas zones. Technical problems greatly delayed the completion process, but now all is in place for commercial production. Current gas prices make this a profitable venture for Pan Andean.

Expected production and cash flow from Vrazel complements our other successful producer in the area, The Zachry Korenek No. 1 discovery.

These two discoveries bode well for the forthcoming drilling program on our 100% owned properties in the Danbury Dome area.

Pan Andean expects to make an announcement specific to this venture in the coming weeks.

The company's offshore drilling program is also active. A rig is in place on our 50% owned Hi Island A-68 Block in the Gulf of Mexico. I expect to announce the start up of drilling within a few days".

Maximum online buy with barclays stockbrokers is 25K.

PRE's end of year results are not going to be that exciting, probably not just as good as last years in financial terms. However, in August/September they will be commenting on the current drilling programme, the success at Vrazel and the results of DD and HI52. Production has been tailing off a bit but gas prices have averaged over 20% higher for the year. Vrazel not only adds $60,000 per month but there is the recoverable asset value of the gas that is added to the underlying value of PRE. The recoverable asset value is increasing even if production is tailing off a bit. If HI68A is successful it will add more recoverable gas to PRE again adding to the underlying value of PRE, offshore wells can be lucrative and the estimated reserves of this gas target will not be confirmed until the well is complete. Estimates fall in the region of 1-10bcf of gas but could be greater. The new gas will add to PRE's underlying shareprice and asset value, again nothing to do with production levels. Danbury Dome at 14,000ft has a 75bcf target, it could contain more it could contain less it could be non-commercial but until they drill they won't know. They have commercial wells in the nearby surrounding area therefore the risk on DD has been significantly reduced. It is an exploratory well unlike HI68 development well therefore there is slightly more risk but is in a highly commercial gas prolific region. DD also contains a 100bcf target at 17,000ft. If successful DD will add value to the recoverable gas reserves of PRE (again nothing to do with their production levels). These 2 wells could add significant recoverable gas to PRE's reserves and therefore anyone looking to acquire the company will have to pay for the new proven reserves hence adding significant underlying value. PRE do not have 200bcf of proven recoverable gas! They have about 15bcf priced in currently, El Dorado is not currently priced in they have 10% of a 200bcf recoverable asset there, there are possibly 6 appraisal wells planned for the development of El Dorado. We shall know shortly the future of Bolivian gas. The development of El Dorado will see the recoverable amount increase by many times, this however does not look like happening short-term.
All of the recent drilling and any new production coming from these wells now occurs post-March 2004 therefore will not influence their finals that will be released in September. Any success at these targets will not only enhance current production levels but also cash flow and their ability to drill further targets on HI30 and the deep DD play. Vrazel at current cash flow adds $60,000 per month to PRE, their share of the investment in this well was $210,000. If we get commercial finds on the other targets then they will pay for themselves short-term and PRE will remain debt free. PRE has raised enough cash recently to Drill HI68A, DD and another well at El Dorado. The current drilling programme, if we get continued success, will put PRE in a very healthy position. I took a larger position in PRE to compensate for the effect of the dilution around the time of the placing but the best profit is yet to come. Next well, very low risk, in-fill from an old production well, high chance of a commercial find, no guarantees in this game though. If HI68 and DD are successful they more than make up for any recent fall in production and would give PRE a higher underlying asset value than ever before. As curry stated most of us have added before this point. As PRE enhances its asset value they will have greater financial flexablity, and could borrow cash on the strength of added reserves, not to mention draw the attentions of a wider range of institutional investors.

P.S. The market vavlue of gas at Henry hub is $6.05, the wellhead is currently about $5-5.20, the asset value of US gas in the ground in approximately $1.20-1.40. You cannot use the market value of gas to assess the value of these finds to PRE. The life of field value of PRE's gas is very good with the wellhead above $5/mcf.

Development Projects

Angola

BP (12%) together with Angola's state owned Oil Company, Sonangol (20%), ChevronTexaco (32%), TotalFinaElf (12%), Norsk Hydro (12%) and Exxon Mobil (12%) are undertaking joint activities to progress a proposed Liquefied Natural Gas (LNG) project in Angola.

Initially, the plant configuration will be based on a one-train design with a throughput of four million tonnes of LNG per annum. Further joint studies will be carried out to identify the optimal solution.

Bolivia

BP, through its South American subsidiary, Pan American Energy, is pursuing a number of options to monetise Bolivian reserves. Together with BG and Repsol YPF (partners in the Margarita field in Bolivia) studies are being undertaken to examine the possibility of selling Bolivian gas to the west coast of the United States. This project would involve piping gas and condensate across the Andes to the coast of Chile or Peru. Following liquefaction the gas would then be shipped to a receiving terminal in the United Sates or Mexico.

Thats very interesting, selling bolivian gas to Peru !!


http://www.bplng.com/about/where/projects_development.asp



BP LNG - Development Projects... BP, through its South American subsidiary, Pan American Energy, is pursuing a ... are being undertaken to examine the possibility of selling Bolivian gas to the ...
www.bplng.com/about/where/projects_development.asp - 14k - 6 Jul 2004 - Cached - Similar pages



dated 6/7/04... HOT STUFF !!

This explains the penny plus drop.

Pan Andean abandons High Island A-68 well after insufficient gas shows
AFX


LONDON (AFX) - Pan Andean Resources PLC said the well drilled on High Island A-68 was plugged and abandoned after gas shows were considered insufficient for commercial production.

Pan Andean holds a 50 pct interest in the Gulf of Mexico well.

The rig is being moved to block High Island 52, where Pan Andean holds a 45 pct interest. Operations on this block, also in the Gulf of Mexico, will start early next week.

newsdesk@afxnews.com

jc

seawallwalker: That would seem to be a silly drop. Pan Andean is already underpriced but now even more so. They've abandoned this prospect after only a few days and have moved the rig elsewhere. Lets see what happens next week. Could be fun!

'The rig is being moved to block High Island 52, where Pan Andean holds a 45 pct interest. Operations on this block, also in the Gulf of Mexico, will start early next week.'

I agree it is a rubbish move by the mm, but they have to make money tto, even if at everyones expense

seawallwalker: Agreed! I'm keeping a close eye on these as I'm wondering whether to top up.

WWW.PANANDEANRESOURCES.COM

The website has had a complete makoever. Now looks very professional and alot of the information is now upto date and very informative.

Worth a look for all..

PanAndean Resources US Assets:
High Island A68 (Gulf of Mexico) - 50.00% working interest
High Island 52 (Gulf of Mexico) -50% working interest
High Island 30L (Gulf of Mexico) - 62.91% working interest
Vrazel (Texas) -21% working interest
Danbury Dome (Texas) - 20% carried interest through one well
Zachary (Texas) -7.3% working interest
Eugene Island 255 (Gulf of Mexico) - Working interest (4.375%)
North Bob West (Texas) - 1% Royalty

Pan Andeans activities in the USA (Gulf of Mexico and on shore Texas) are operated by its wholly owned subsidiary Endeavour Oil and Gas Inc. The US assets were acquired during 2000 and 2001 and have proved to be a profitable acquisition generating the majority of the Group Profits and Cash flow. The oil and gas prices were favourable during the period, averaging US$29 per barrel of oil and $4.62 per thousand cubic feet of gas (mcf). The current gas price is just under $6 per mcf and is expected to remain strong for the rest of the year. Production on our blocks is on a slow decline but recent workovers and drilling have reversed this trend.

US Natural Gas Market

Over the past 10 years the US has become increasingly dependent on Natural gas as efforts are made to move away from traditional energy sources. However over this time Natural gas supplies have not kept pace with this increase in demand. As such the market price for natural gas reflects the tight balance between natural gas supply and demand. During the 1990's price was kept low due to abundant demand however this situation has changed. Increased gas penetration, public policies and scarcity of large exploration targets will make the USA dependent on imported supplies, including LNG. US demand for natural gas is expect to grow by 38% by 2025. The impact increasing natural gas prices might have on the US economy has lead to this topic been touched upon by Alan Greenspan, Chairman of the Federal Reserve. "Today's tight natural gas markets have been a long time in coming, and futures prices suggest that we are not apt to return to earlier periods of relative abundance and low prices anytime soon" Alan Greenspan, June 10, 2003.

Pan Andean Bolivian Operations

PETROLEX SA a wholly owned subsidiary of Pan Andean was acquired in September 2000. A long established private Bolivian company it has non-operating interests in two Bolivian oil concessions Monteagudo 30% and El Dorado 10%. Both blocks are joint ventured with oil majors. In Monteagudo, Repsol is a 50% partner with Petrobras of Brazil holding the remaining 20%. The El Dorado block is operated by Pan American a consortium of BP/Amoco and Bridas of Argentina.

Pan Andean produces high quality crude oil and natural gas from our 30% stake in the Monteagudo Field, in southern Bolivia. The Monteagudo Field has produced over 37 million barrels of oil since its discovery in 1968. The field is operated by Maxus, with a 30% stake and is now owned by Repsol- YPF. Repsol owns an additional 20% stake via its ownership of the privatized Bolivian oil company Andina. The remaining 20 % is held by Petrobras, the Brazilian semi-state oil company. Oil output from relatively shallow reservoirs has remained strong. There is scope to enhance production through work-overs and new infield wells.

Pan Andean owns a 10% stake in the large, strategically situated gas discovery at El Dorado, some 40 km south of the city of Santa Cruz. We have been working hard to find a market for the gas to optimize cash flow from the associated liquids production, including condensate, natural gasoline, and GTL. Pan American Energy, part of the BP GROUP, owns the balance of the block. BP has large interests elsewhere in Bolivia, primarily via the privatized state company Chaco. Pan American's main current focus is on their Liquefied Natural Gas project aiming to sell gas form their stake in the mega - gas fields of southern Bolivia, via a pipeline to the Pacific Ocean and or by tanker to Mexico and the Californian market. We are working on a number of options to generate early value added for shareholders from the El Dorado discovery. The best option is to tap into the nearby gas export pipeline to Brazil. We are situated within 30 km of the gas gathering station and appear to have a considerable transport cost advantage. However, lower than expected volumes into the Brazil gas market has delayed securing a market in Brazil for the El Dorado Field. Accordingly our priority is to secure an early gas market and produce the associated liquids. For this purpose we are working on a gas to liquids facility, which would process 20 million cubic feet per day of natural gas. This is the sustainable production capacity today available from the two discovery wells at El Dorado.

Why Bolivia? Other contributing factors:

Recent gas finds include discoveries by Total, Petrobras and British Gas.
Discovered gas has risen from 7 tcf to 46 tcf.
High commercial hit rate at 1 in 6 exploration wells.
Low taxation and royalties. Freely convertible currency (informal dollar link).
Low inflation (<15% yearly).
No restrictions on foreign ownership.
Established, fair legal system.
Very low crime levels (lowest in the Americas).
1996 Hydrocarbon Law provides low taxes and good title, as well as reasonable work commitments but includes an annual rent of $1 per hectare per concession.

8th July 2004 - Drilling Update

Pan Andean Resources announces that the well drilled on High Island A-68, in which Pan Andean holds a 50% interest, reached target depth yesterday. Although gas shows were reported and one potentially productive sand identified from logs, overall it was felt that this was insufficient for commercial production. The hole is therefore being plugged and abandoned. The rig is being moved to block High Island 52, where Pan Andean holds a 45% interest. Operations on this block will commence early next week.

PanAndean Resources PLC
US Assets:
High Island A68 (Gulf of Mexico) - 50.00% working interest
High Island 52 (Gulf of Mexico) -50% working interest
High Island 30L (Gulf of Mexico) - 62.91% working interest
Vrazel (Texas) -21% working interest
Danbury Dome (Texas) - 20% carried interest through one well
Zachary (Texas) -7.3% working interest
Eugene Island 255 (Gulf of Mexico) - Working interest (4.375%)
North Bob West (Texas) - 1% Royalty

Pan Andeans activities in the USA (Gulf of Mexico and on shore Texas) are operated by its wholly owned subsidiary Endeavour Oil and Gas Inc. The US assets were acquired during 2000 and 2001 and have proved to be a profitable acquisition generating the majority of the Group Profits and Cash flow. The oil and gas prices were favourable during the period, averaging US$29 per barrel of oil and $4.62 per thousand cubic feet of gas (mcf). The current gas price is just under $6 per mcf and is expected to remain strong for the rest of the year. Production on our blocks is on a slow decline but recent workovers and drilling have reversed this trend.

US Natural Gas Market

Over the past 10 years the US has become increasingly dependent on Natural gas as efforts are made to move away from traditional energy sources. However over this time Natural gas supplies have not kept pace with this increase in demand. As such the market price for natural gas reflects the tight balance between natural gas supply and demand. During the 1990's price was kept low due to abundant demand however this situation has changed. Increased gas penetration, public policies and scarcity of large exploration targets will make the USA dependent on imported supplies, including LNG. US demand for natural gas is expect to grow by 38% by 2025. The impact increasing natural gas prices might have on the US economy has lead to this topic been touched upon by Alan Greenspan, Chairman of the Federal Reserve. "Today's tight natural gas markets have been a long time in coming, and futures prices suggest that we are not apt to return to earlier periods of relative abundance and low prices anytime soon" Alan Greenspan, June 10, 2003.

Danbury Dome:

The Danbury Dome area is located 40 miles south of the city of Houston, Texas. In September 2003 Endeavour acquired the 60% interest in the Korenek leases held by El Paso Production Oil and Gas. Endeavour now owns 100% of the Korenek and Vieman leases covering 1,029 acres. In addition, Endeavour has leased 253 acres adjoining the Block. Geologic and seismic studies have identified three drilling prospects with potential reserves of 75 billion cubic feet of gas at depths between 12,000 ft. to 14,000 ft. in the Deep Frio Sands and Anomalina Sands. The wells are estimated to cost 3 million US$ per well completed. In addition we are studying the potential of the "Golden Eye Yegua Project" at 17,000 ft estimated to contain 100 billion cubic feet of gas. Endeavour also owns the Korenek no. 4 well - a 12,550 ft. deep producing gas well. Although the no. 4 well is only marginally productive, at present, it has significant work over potential. The gas pipeline infrastructure is in place so any new discovery can be rapidly developed.

What does Pan Andean do ?

Pan Andean formed in 1988 is listed on AIM with 7000 shareholders.
Pan Andean is debt free, cash positive producing oil & gas in the US and Bolivia.
Pan Andean has proven and probable reserves of over 3 million barrels equivalent in the US and over 2mbbls proven and probable oil equivalent in Bolivia.
Pan Andean has exploration projects in the US and in South America.
Pan Andean Oil & Gas Production
Pan Andean produces over 300 bbls oil a day.

Pan Andean Development Strategy
Pan Andean's strategy is to lever management's hydrocarbon experience, South American knowledge and financial market access, to develop into a significant oil and gas producer in South America. Political uncertainty is delaying implementation.
Bolivia will be the prime energy supplier to Brazil. We have the best placed reserves in El Dorado and up to 3.6 tcf deep gas potential at Monteagudo.
A major investment in producing assets, with exploration potential, in Venezuela is on hold due to political uncertainty.
An acquisition in Argentina, which has production and exploration potential, is developing slowly due to uncertainty.

THE FUTURE

The future looks good. Pan Andean is profitable and cash generative with significant drilling opportunities on our US assets and an exciting GTL project in Bolivia. Our increasing cash flow, AIM listing, liquid share and 7000 shareholder base attracts many exploration and development proposals. We are examining high potential projects in the Americas with one close to a decision. Outside of the Americas we are working our way through three projects. We are fully aware of the need to build shareholder value.

John Teeling

Chairman

Nice tight spread this morning. Bid/offer now 15.2 to 15.44p

It's hard to believe that this stock has such a tiny market cap of only 18 million.

From another BB:

This is the first time that anything definite has been written about drilling plans in Bolivia? Everything up to now has been rumour? If so this is tremendous news. A joint drilling program with BP would probably make it into the newspapers.

BP are already exporting gas to Brazil, but the referendum on the 18th... wey hey a week to go, would mean a bigger customer base (and perhaps a better price). At $7m it sounds like a proper job to me !

Perhaps we should ring Pan up and ask why no RNS ? My guess would be that its down to BP, but a megga blue sky project to us, is small spuds to BP.

We should get an RNS on Monday. Their drilling ship should be at its new location in the Gulf of Mexico by then.

The buyers return!

We should get an RNS today or on Tomorrow to say the drilling rig has arrived at its new location in the Gulf of Mexico and is about to start drilling. This should be enough to provoke speculative interest in this stock.

All this 'drilling news' reminds me of four years ago when the price dropped from 70 odd p to 12p on the 'drilling news'!!!!! much hot air but NO hot OIL!!!
I seem to remember. DYOR ;

chartist2004: Point taken, but the company is doing much better now. It still has a tiny market cap of only 18 million. Have a look at the heading of this thread and compare it to the following announcement. On top of this, those huge finds in Bolivia could bear fruit, especially as BP are behind the biggest of them.

30 June 2004 Pan Andean, the listed oil and gas producer, announces successful completion of Drilling Onshore Texas Pan Andean plc., explorers for and producers of oil and gas in South America and in the U.S., is pleased to announce that the Vrazel No. 2 well in the Danbury Dome area onshore Texas, is a commercial discovery expected to produce at a rate of 1.9 million cubic feet of gas per day. Tie in to existing pipelines will be completed within days. Pan Andean holds a 21% interest in this project.

John Teeling, Chairman said, "Finally Vrazel is commercial. Drilling confirmed
the presence of a number of gas zones. Technical problems greatly delayed the
completion process, but now all is in place for commercial production. Current
gas prices make this a profitable venture for Pan Andean. Expected production
and cash flow from Vrazel complements our other successful producer in the area,
The Zachry - Korenek No. 1 discovery. These two discoveries bode well for the
forthcoming drilling program on our 100% owned properties in the Danbury Dome
area. Pan Andean expects to make an announcement specific to this venture in the coming weeks.

The City is full of hot air.

That is how it works!

A couple of nice buys went through around Noon.

RNS Number:6275A
Pan Andean Resources PLC 08 July 2004
"The rig is being moved to block High Island 52, where Pan Andean holds a 45% interest. Operations on this block will commence early next week."
............
13 July 2004
Pan Andean:
Rig Name: PD 11-J
Previous Names: HERCULES 11, CLIFFS 11, MARINE 11
Rig Owner: PARKER DRILLING
Previous Owners: CLIFFS DRILLING, MARAD, MARINE HOLDING
Rig Manager: PARKER DRILLING
Operating Status: DRILLING
Operator: STERLING
Date Available: NOT KNOWN
Country: UNITED STATES
Area: GULF OF MEXICO
Block/Well: High Island 52
Water Depth: 42
Only 42 meters water depth, and status = Drilling !!

hi grevis
please enlighten a confused old soul
drilling at 42 metres is good?

Production boost for Pan Andean
AFX
Successful workover on High Island 52 means it will soon come into production

Pan Andean Resources PLC said a workover on block High Island 52, in the Gulf of Mexico, has been successful and that the well will shortly come into production and is expected to produce at 1 mln cubic feet of gas a day.

Pan Andean holds a 50 pct interest.

On July 8, the company said it plugged and abandoned the High Island A-68 well, also in the Gulf of Mexico, after gas shows were considered insufficient for commercial production.

grevis2 where did you obtain the rig information above please?

Missed this one till today, but I will say I admire the way John Teeling makes everything sound like he has the Leprechauns on his side! (".....but with skill and luck..........")

If he has then the Company will probably find it's pot of gold!

I post this late because of the delightful way it has been written.

22th July 2004 - Danbury Dome Update

Drilling to 14,500 feet at a cost of $4m will begin within 60 days.
Additional acreage leased covers the entire target zone.
Joint venture with three US companies. Pan Andean has a 20% free carried interest in the first well.
Pan Andean, explorers for and producers of oil and gas in South America and in the US, has put together a package of leases covering 1,700 acres in the Danbury Dome area of Texas. Work done by Pan Andean has identified prospects with potential reserves of 75 billion cubic feet of gas, at depths between 13,000 and 14,500 feet. The Anomalina sands at 13,000 feet will be drilled within the next 60 days. The well, costing $4m will take 45 days to drill and an additional 30 days to test and complete.

The lease area also covers the separate Golden Eye Yegua/Vicksburg prospect which may contain up to 100 billion cubic feet of gas. This totally separate target is estimated to be at 17,000 to 18,000 feet.

A consortium has been formed to drill Danbury Dome in which Pan Andean will have a 20 per cent free carry through the first well. The consortium is made up as follows:

Pan Andean 20%
Palace Exploration Company/Zinke & Trumbo, Inc. (Operator) 55%
LaRose Texas Interests, Inc. 20%
Radiant Energy, L.C. 5%

Zinke & Trumbo, Inc. who will operate the consortium, is a large privately owned US oil and gas company, with specific expertise in drilling deep onshore wells.

Commenting, John Teeling, Chairman said, "Danbury Dome became a high priority target in 2003 when we acquired 100 percent ownership of the disputed Korenek lease. Our studies suggested that the target reservoir stretched between our Korenek and Vieman leases but we did not have rights on the intervening ground. With great skill and patience, our US team negotiated and acquired leases on the ground between Korenek and Vieman. We now believe that we have leases covering the entire structures.

Deep onshore drilling is not only expensive but technically challenging. We wanted a partner with a strong track record in this area. Zinke & Trumbo, Inc. has been built on successful onshore gas drilling. We are delighted to have them as a partner and operator.

High gas prices make Danbury Dome a most desirable target. Drilling is uncertain but with skill and luck, we could have a very lucrative discovery".

Contacts: John Teeling, Pan Andean Resources - Tel: +353 1 8332833
James White/Emma Kane - Redleaf Communications - Tel.+44(0)207 955 1410
Ian Rice - Rowan Dartington - Tel.+44(0)117 933 0020

Pan Andean Resources PLC
05 August 2004



Pan Andean - News Release DRD X-1004



Pan Andean spuds Bolivian Well
Pan Andean & Chaco (BP Group) launch due diligence of Gas-to-Liquids
technology



Pan Andean Resources, explorers for and producers of oil and gas in South
America and in the US, is pleased to announce start of drilling of DRD X-1004 on
its gas and condensate field at El Dorado, near Santa Cruz, Bolivia. The
interest is held through its subsidiary, Petrolex.



The well spuds this week and will be drilled to 4,290 metres (14,100 feet). The
operator is our 90% partner, Chaco, which was formerly part of the Bolivian
National Petroleum Company (YPFB) and is now part of the BP Group. The well is
projected to take 90 days, including testing. Targets are the Petaca sands
(approximately 1,600m), the Ichoa Formation (2,200m), Iquiri and Los Monos
(4,000 to 4,500m).



In addition to anticipated exploratory upside, Pan Andean expects to convert
approximately 60% of the currently classified probable reserves to proven,
subject only to development of the Brazilian gas export market. This equates to
100 billion cubic feet of gas and 1.6 million barrels of oil-condensate.



Following recent remapping and regional work, technical staff believes that the
DRD X-1004 well may increase the proportion of oil-condensate contained in
future production from the reservoir. Pan Andean also hopes that significant
new reserves may be added to the west of a geological fault running through the
structure.



Pan Andean and Chaco have launched a Gaffney, Cline technical validation / due
diligence review of the Energy Technology Gas-to-Liquids project. This
technology offers a pioneering low capital cost method of generating diesel fuel
from the gas available at El Dorado. This may offer accelerated access to
market.



Managing Director, David Horgan, commented: 'The El Dorado X-1004 well marks a
return to vigorous development of our South American interests. After three
years of regional retrenchment, energy demand is bouncing back. High oil prices
make gas-to-liquids projects economic. Pan Andean hopes that these developments
will position El Dorado for early development as a GTL project and/or to exploit
the rapidly recovering gas demand in Brazil and Argentina'.



Contacts:

David Horgan, Pan Andean Resources: Tel.+353 1 833 2833
Jim Finn, Pan Andean Resources: Tel.+353 1 833 2833



James White - Redleaf Communications: Tel.+44(0)207 955 1410
Ian Rice - Rowan Dartington: Tel.+44(0)117 933 0020


This information is provided by RNS
The company news service from the London Stock Exchange

looking good for a news update on start of DD drilling

Anyone know why the share value is jumping around?

Is it the reason given by currypasty above, or something to do with ElDorado.

I have doubled up in the hope of something good coming.

Drilling report it has started at the Danbury Dome.

Amazing if that is why the price has gone so high. There is a 6 week pweriod before results are finally known.

Pan Andean Resources PLC
09 September 2004


DRILLING COMMENCES ON THE 50 BILLION CUBIC FEET GAS TARGET IN DANBURY DOME

Pan Andean Resources plc, explorer for, and producer of, Oil and Gas in the US
and South America, is pleased to announce the commencement of drilling of an
exploration well on our Danbury Dome leases onshore Texas.

The target is the Anomolina sands which 3D seismic surveys indicate could
contain 50 billion cubic feet of gas at depths between 13,000 and 14,500 ft. The
Blackstone Ivory No. 1 well, costing US$5m, will take 45 days to drill and an
additional 30 days to test and complete. Pan Andean has a 20% carry in the well,
which will be drilled and operated by Zinke and Trumbo ('Z&T'). Oklahoma-based
Z&T is one of the largest US independent oil explorers.

Commenting, John Teeling, Chairman of Pan Andean Resources, said:

'This is an important development for Pan Andean. A target of this size onshore
Texas with current high US gas prices represents an exciting market opportunity.
The availability of local infrastructure means rapid cash flow if we are
successful.

The Danbury Dome area is a prolific gas producer and our existing exploration
track record there is good, as shown by our successful Zachary and Vrazel wells.
Success here would not only be much bigger but will also enhance the
prospectivity of the entire lease area.'


Contacts:

Pan Andean Resources
John Teeling / Jim Finn Tel: +353 1 833 2833


Bell Pottinger Corporate & Financial
Nick Lambert Tel: +44 (0) 7811 358 764



Rowan Dartington
Ian Rice Tel.+44 (0) 117 933 0020

Well nice pick up on final results.

Dont expect the price to hold ay 17p unless they hit at Danbury Dome though.

I wonder who they are looking at with a view to aquisistions?

Someone samllish in Europe with a portfolio!

Could be PCI I suppose.

Pan Andean FY pretax profit jumps; Looking at 2 possible acquisitions UPDATE
AFX


(Adds details)

LONDON (AFX) - Pan Andean Resources PLC said its full-year pretax profits more then trebled helped by successful drilling and high gas prices.

The AIM-listed oil and gas company also said it is looking at two strategic acquisitions outside of the Americas. The first is an existing producer with exploration potential in Europe, while the second is an exploration joint venture in the Middle East.

Pretax profit jumped to 1.2 mln stg in the year to end March from 360,480 stg the previous year with operations profitable in both the US and Bolivia.

'Operations in the US, particularly onshore, are handsome contributors to the company,' said chairman John Teeling. 'The Danbury Dome drilling in Texas, which is currently underway, if successful, will provide a significant boost to production and profits, he added.

Drilling is underway on the 14,500 foot, 5 mln usd Danbury Dome prospect with first indications due in October. The target is a reservoir which may contain 75 bln cubic feet of gas. The company has a 20 pct interest in Danbury Dome.

After a six-month refurbishment to install gas lift and a new pipeline system, High Island 30L in the Gulf of Mexico will restart oil production within weeks and will add 200 barrels a day to output and will boost profits, the company said. It has a 62 pct interest in High Island 30L.

newsdesk@afxnews.com

jc

http://www.wallstreetreporter.com/profiles/PanAndean.html

Audio interview with David Horgen. Will warm the cockles of your heart. DD results 1 month, gas shows at El Dorado.

" Oh Lord wont you buy me - a new Mercedes Benz,
My friends all got porsches, and I must make amends!"

chinapete, good find and well worth the posting of the link.

Just listened to it.

He says if the Danbury Dome comes in, and he sounds positive, it will put 60 cents on the share price, around 30p conservatively.

Nice!

From oilbarrel.com today

29.09.2004
Pan Andean Looks To Iran And Europe For Exploration Upside
AIM-quoted Pan Andean, which has long targeted Latin America and the US, is now seeking to add acreage in the Middle East and Europe to its portfolio of properties in the Americas. The Irish-based company, which at present commodity prices is enjoying significantly higher cash flows from its US assets, is keen to add some real exploration spice to the mix. Two possible new ventures in the pipeline include an existing producer with exploration potential in Europe and an exploration joint venture in Iran.

People buy Pan Andean because they want wildcats, managing director David Horgan told oilbarrel.com. Iran could be the great leap forward that Pan Andean shareholders want exposure to.

Even so, the company has made solid progress in the past year, with profits rising from 360,000 to 1.2 million. Pan Andean is ploughing the extra cash back into its existing assets: it drilled four wells in the past year resulting in three producers. In the US, the onshore Zachry and Vrazel wells helped lift output from the companys Texan properties to more than 500 barrels of oil equivalent per day. In the US Gulf of Mexico, the High Island 52 well started producing in July and production from the newly-refurbished High Island 30L field is due to restart within weeks at a rate of more than 200 barrels of oil per day. A well on High Island A68 in the Gulf was a dry hole.

Further drilling work is underway. A US$5 million well to probe the 75 billion cubic feet Danbury Dome prospect onshore Texas is due to complete next month. Its a turnkey project and its right on schedule, said Horgan.

Drilling is also advanced on the US$7 million deep El Dorado well in Bolivia.

Weve had good gas shows and expect to hit target depth in a couple of weeks, said Horgan, who recently returned from a site visit. This well has three objectives: we expect to convert 50 per cent of the probable reserves to proven, we hope to increase the liquids content because that has a big impact on revenues and we hope to turn it into another producer.

A positive result at the deep El Dorado well would not only lift Pan Andeans production numbers but also enhance the economics of its gas-to-liquids (GTL) study. The company is sitting on large reserves in the gas-rich country but lack of demand means this resource is largely dormant despite being within 25 km of the Bolivia-Brazil pipeline. The companys GTL study, in conjunction with BP and a US technology group, would be one way to monetize the resource base.

Horgan added that the outlook is looking brighter in Bolivia, even though the country remains politically unstable.

Latin America is clearly bouncing back, said Horgan. But both Brazil and Argentina are now taking more gas so the economic cycle is on the way back.

Even so, the company is keen to diversify and is keen to progress its new ventures discussions. It has, however, already dismissed possible projects in Trinidad and Venezuela as uneconomic or unworkable. It remains to be seen whether Iran and Europe clear the new venture hurdle

A 200,000 T trade. It's bad enough having these with PCI, now PRE has got into the act. I'm guessing this could be the start of a large protected order going through, in which case an upward movement tomorrow possibly. Any comments anybody?

We will all be rich................


Pan Andean Resources PLC
01 October 2004



Pan Andean Resources plc

01 October 2004

Gas Found in Bolivian Drilling

Significant gas shows have been encountered in the first target zone in the deep
El Dorado gas well near Santa Cruz Bolivia. The well, which is a joint venture
between Pan Andean (10%) and Chaco, a BP subsidiary, (90%) is currently at 4,210
metres depth with a further 80 metres to go to the final depth.

The gas shows, encountered in the Iquiri formation, are currently being logged.
Rock porosity and permeability are thought to be excellent.

Within days the target Tacabo reservoir at 4,290 metres will be drilled. It is
anticipated that a full open hole well test will follow completion of drilling.

ask is 21p and rising....

always a nice way to end the week!

Are you in these too?

Now is not the time to sell IMHO, but well into the blue is great.

Morning All,

Had this one on my watch list for a while, latest news has prompted me to jump in, so will watch with more than passing interest from now on. Good luck

regards

PTH

Wheeeeeeeee..................... 3p up and rising!!!

no, but was in 1996/7 when i rode them up to 90p...and cut them. always had them on the watch list and was tempted a few months ago but felt i had better places to keep my cash. more fool me, enjoy the ride!

Thanks prop, you are very kind with your thoughts.

23p and in come the sellers.

Hold tight,much more in this yet.

Some bugger knew yesterday and made a protected trade. Just sold half mine as I was overweight. Gas in Bolivia is OK, but gas in Texas is much better and could come shortly.

Too true, Texas is the biggie.

And I saw that yesterday.

Well, it's not what you know............

Up we go again.

Where it goes, no body knows.........

'Significant gas shows' boost Pan Andean

Sat, Oct 02 04 Irish Independent

http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1261820&issue_id=11501

JOHN Teeling's patience with oil and gas interests in Central and South America appears to have paid off with the news of "significant gas shows" which have been encountered by Pan Andean, the AIM-listed company.

The gas shows appeared in the first target zone in the deep El Dorado gas well near Santa Cruz in Bolivia.

Pan Andean shares rose 25pc on the news in London yesterday from 18p to 22.5p.

The El Dorada well, which is a joint venture between Pan Andean (10pc) and Chaco (90pc), a BP subsidiary, is currently at 4,210 metres depth with a further 80 metres to go to the final depth.

The gas shows, encountered in the Iquiri formation, are currently being logged. Rock porosity and permeability are thought to be excellent.

Within the next few days the target Tacabo reservoir at 4,290 metres will be drilled. It is anticipated that a full open hole well test will follow completion of drilling.

Jim Aughney

For all you PRE holders from UKanalyst.com:

There was more good news from Pan-Andean Resources today. The group said that significant gas reserves have been found in the first target zone in the deep El Dorado gas well near Santa Cruz in Bolivia. The well is a joint venture between Pan Andean, which owns 10% and Chaco, a BP subsidiary that is unrelated to UK-listed group Chaco Resources, which owns 90%. Rock porosity and permeability are thought to be excellent, the company said. Pan-Andean also said that, within days, the target Tacabo reservoir at 4,290 metres will be drilled. It is anticipated that a full open hole well test will follow completion of drilling. The shares added 4.5p to 22.5p.

Well it only goes to show that every newspaper interprets what they see differently.

For the record, Pan Andean hold 21% of the Bolivian deal.

Hopefully there will be a bigger bubble when they get to the required depth, and again twice for the Danbury Dome.

1 a share would be nice, but unless these finds are both significant, we may have to settle for 50p or there abouts............."Doh!"

Will PRE continue to rise next week, any comments anyone??

No idea.

There is a good chance they will hold near the 22p mark until the next bit of news, if it is good.

That is the best case senario.

When the required depth is reached, it depends what quantities have been found as to the way it will go. I can guess like anyone else, romantically I am attached because I hold, therefore biased to a hold and steep rise because that is what I want to happen.

Anyone else will have an opinion, but that is as good as mine.

If you are in then make a judgement when to sell, if you are buying imho there is more in this yet but as usual you decide and do your own research.

Cant see how this can fail to rise given the impending news. Of course the actual news has to be good. Its a reasonable punt with decent odds imo.


I do hold.

Well Monday rise and fall is about right.

Up to nearly 26, then the profit takers sell like mad.

Not tempting enough for me yet, I am looking for 1 a share!

If it goes much lower I will buy in again.

Oh well, darn it!

It's gone up again.

I may as well sit on my spare cash then as I am nicely in the blue.

What a life! ;-)))

I halved my holding to grab a profit at 22p.

Once again I sold too soon - will I ever learn. Still, at the end of his life, one of the Rothschilds said " I always sold too soon" so I'm in good company. It's apparently one of the most common small investor mistakes. We're fear driven when we should be ice cold, because we can't face a big loss.

If and when PCI goes up, I must remember PRE.

Money in the Bank on both counts!


However never coun t the chickens............etc.

I think you did right, but hold the other half.

Does any one know of a site which is charting the bid and the offer on the same graph? Could be another useful bit of info.

Well, as suggested it looks like this is holding at 22p or thereabouts.

Now where is the next bit of news????????

They said within days the target depth will be reached so any time will do.

Obviously got to wait till after the weekend now.

And I said that so I could be wrong!

Midweek-ish is the word. Which midweek was not specified.


Due for a miracle!

No miralces.

Believe!

shows 1.75p up!

Did I miss something?

No RNS that I can see, maybe the word is that they hit gas/oil at the target depth in Bolivia?

That's more like it, dropping back!

The Independent

The Outlook Column:

*Hope of second time lucky for Bolivian bonanza - Pan Andean Resources (LSE: PRE.L - news) a long-term investment.

It can't be long to a DD announcement surely? I'm back in with a shedful, so very interested!

Both the DD and the Bolivian well are overdue announcements.

Any time for both in my estimation.

Looks like the price is about to rise again.

And so it is...............

Before the news????????

Pasted from the SEY thread. Sorry about the food comments, they are a load or gourmets over there!

;-))))

Just come in from dog walking, dropped into SOF and got half price fillet steak, so it will be a flash fry served with mushrooms and onions, oh and the buttered mash with 2 veg.

Got to be optomistic with this, but I am convinced that SEY and PRE still have tons of upside.

PRE will come in sooner than SEY imho, any day, in fact why not today?

Hello Mr Teeling, get your biro out....................

Morning all.


This one is dying to take off.

Patience is now wearing thin!

Look at the news SWW!

Looking, must have missed it!

Pan Andean Resources finds gas in El Dorado X-1004 well in Bolivia
AFX


LONDON (AFX) - Pan Andean Resources PLC said gas shows have been found in the El Dorado X-1004 exploratory well in Bolivia and that full production testing will begin.

The company also noted that French oil group Total SA has made a major gas discovery on Incahuasi, a neighbouring block to Monteagudo in which Pan Andean has a 30 pct interest. The discovery may contain up to 12 trillion cubic feet of gas. The find was made in the lower Devonian Huamampampa sands which are also present in the Monteagudo block.

Pan Andean and its partners Repsol YPF SA and Petrobras will drill the Huamampampa when market conditions are appropriate, it said, adding that the positive results at Incahuasi encouraged its optimism.

Pan Andean also said the Black Stone Ivory well in Danbury Dome, Texas is on schedule.

newsdesk@afxnews.com

jc

Not under thier name, which is why I missed it!

;-))

Thought so!

This is a different area to that where they had significant find a few weeks ago, so we are still waiting for that.

This is excellent though, thats 2 big finds in a short space of time.

Good morning everyone! Looks like patience is being rewarded SWW. We appear to be off to a flying start!

Way to go!!

This one has similar prospects to SEY and I have a similar target in mind and they have a smaller cap!

Well up 9% bt 08.15, not exactly racing but the rise is nice!

This will need the news from the other well to maintain this price, otherwise I expect it to slip back.

Not usually pessimistic, but seen it many times now.

I hate being right!

Incredible and unwarranted rop after this news!

The find at El Dorado is huge, as is the Total find.

The market there and ready so wher is the price in the share ??

No doubt this will all be reflected come the finals, so it may be worth a few bob extra till then imho of course.

But then again, how often am I wrong?

SWW
When are the finals? I'm quite new to this share.

For all you PRE holders, from UK-analyst.com:

"Also upbeat after a gas find were shares in Pan-Andean Resources. The company said that gas shows had been found at its El Dorado X-1004 test site in Bolivia and full production testing would now begin. It said that Total has also made a major gas discovery on Incahuasi, a neighbouring block to Monteagudo in which Pan Andean has a 30% interest. The discovery may contain up to 12 trillion cubic feet of gas, the company added. The find was made in the lower Devonian Huamampampa sands which are also present in the Monteagudo block. The shares added 0.5p to 23.25p."

sandrew64

A way off yet for the finals, but rest assured, these will perform as you want them too, all imho etc.

Thanks gavdfc, useful posting :-)

Here's another snippet for all you PRE holders from Oilvoice.com:

Pan Andean Resources Drilling Update
Tuesday, October 19, 2004


--------------------------------------------------------------------------------
Latest Oilvoice Headlines

Sonoran Energy Establishes Presence in Kazakhstan
Hydro Appoint New head of Communication in Oil & Energy
Kerr-McGee and Stone Energy Announce Exploration Agreement
EnCana Participates in Promising Deep Water Gulf of Mexico Production Test and Discovery
Toreador to Spud Exploratory Oil Well Onshore Turkey; Company Updates 2005 Operational Plans
Discuss these headlines in the OilVoice Forum
El Dorado, Bolivia
The El Dorado X-1004 exploratory well, located in Santa Cruz, Bolivia, has reached target depth of 4,290 meters.
Gas shows have been encountered in both the Guanaco and Tacobo sands. Following completion of casing, full production testing will commence. This will last approximately three weeks.

Monteagudo, Bolivia
Total have made a major gas discovery on Incahuasi, a neighbouring block to Monteagudo in which Pan Andean has a 30% interest. The discovery may contain up to 12 trillion cubic feet of gas. The find was made in the lower Devonian Huamampampa sands which are also present in the Monteagudo block.
Current oil and gas production in Monteagudo is from shallower horizons. Pan Andean, together with partners Repsol and Petrobras, will drill the Huamampampa when market conditions are appropriate. The positive results at Incahuasi encourages our optimism.

Danbury Dome, Texas
Drilling the 14,500 foot Black Stone Ivory well is on schedule and has passed 10,000 feet. Target zones are about 20 days away.

I have bailed on PRE, as I note an article for the second time in the Times saying that the Bolivian Government are under ressure to Nationalise the Gas discoveries.

BP and Total have large assests in Bolivia, fortunately the mm have not yet put 2 and 2 together for PRE who also hold a large share.

I know it should have gone up further with the Danbury Dome about to reveal it's secrets, bvut money in the bbank is exactly that, money in the bank.

The Bolivian article in the Times is positive for PRE they may end up paying less tax

Never mind!

It is assumed foreign oil companies will have to pay 50% tax but there is international pressure for that change not to go through, the British threatening not to cancel Bolivia's debt is part of that pressure so if they win that is a benefit to PRE over the current thinking of 50% tax.

Bolivia is not realy priced in fully in Pre's share price , if it was it would be a lot lot higher.
Also PRE are looking at suppling the local market with oil condensate so i guess they wouldnt pay export tax on that anyway.
The key to Bolivia is if they can find a market to sell gas to ie Brazil, if they can do that then paying 50% tax is still beter than the present.

We need to focus on Danbury Dome.

AGM this week.

NAV is around 20p so good upside.

Thank you.

Much clearer than the Times, and fuller too!

Worth buying a few PRE just for the certificate.It is a real masterpiece!

I must ditch this nominee account.

I like nice art!

Had a few this morning.

Get them while they are cheap!

Running up again this morning (fat chance of me adding again at 18p as I had hoped)...
Gonna be knocking at 24p again very soon..., significant if it manages to break that decisively...
Danbury (and/or El Dorado, though that's less important) news imminent...
No guarantees of success, of course (but this is Texas)...

The sudden increase in volume and price can partly be attributed to DES holders taking some profit and buying in as they are the next best :-

Waiting for news hot riser.

Up at 24p again... Critical level... News imminent...
One of my largest holdings, and I have a target of 40p...

Update: Fell back off 24p - right on cue.
Now gotta see if a few runs-down-and-up will break it or not...

only 40p, might be better to hold tight and get a better picture of developments.

Nick - :)

Her we go again.

Nice bit of news would go down a treat!

say +5 immediately or so..........

Broken through 24p. Is this it? Onwards and upwards
:)

Give it a kick........

.......and another.......

My mid shows 25p.

Maybe the earlier poster was right that news must be coming.

Hats off if it happens.........

So much for 24p ?! :)

Lets hope that is the last time we see 24p.

The power of concentration.

It worked.

Now for 30p

What a beeauty!
+32% today
Gonna buy it a curry tonight.
But watch the news tomorrow (or v.soon)...

Goodness gracious.

This with no news?

I smell news soon.

DD it is then, better thn expected do we think?

Find out soon I bet.

Enjoy.

Stockmarket gauleiters should demand PRE issues a statement in view of the speculation. Will be watching from 0715 hrs tomorrow.

We have waited a long time for this!

Will the same thing happen ahead of the PCI drilling report!

As always, here's to us, there's none like us.

Theory elsewhere that this is about an Iran deal - the "joint venture in the Middle East" that has been mentioned prevously and may have leaked.

If so, another Petrel, which is up by 400% from the point where I looked at it and stupidly failed to buy. Shall we say 60p+ if Iran is the deal.

Lets say that.

As Teeling is CEO of both PET and PRE, it makes sense.

In a way I hope it is that for the sake of the other long sufferers on PET.

They deserve it!

Up and down like a t*rts nickers.

Think it's time to stop wtching and get some work done.

IOf it's gong to happen it will even if I'm not here.

SWW - I am not very familiar with Tart's underwear, but I do know that there is a "k" in knickers!

What started all this speculation? We still don't know.

No idea.

Thought it looked wrong!

the letter k

Dropping off today, wierd or what?

having a punt around now to see if anyone has any ideas.

Texas drilling hopes prompted a speculative gain of 6 3/4p to 27 3/4p in Pan Andean Resources.

http://www.thisislondon.co.uk/news/business/articles/timid84574?source=

Thanks SWW

There is gas either side of the area where they are drilling so we are in with agood chance IMHO.

Agreed.

Over all a good stock to hold.

Loads going for it.

I still fancy that JT has a hankering to have one Office instead of 2!

Don't see that happening till The contarcts are settled in Iraq, which could be about now.

Lets face it, the Irish have nothing to fear being in Iraq working on oil.

They are seen as freinds.

Anyone know when Wall St opens? That might produce some buys.

Added more sub-27p (not looking like I might get a chance at my preferred 24-25p level, at least not today; maybe Monday)

I did the same, just.

Got 26. something.

I agree with what you say.

DD is imminent.

60 cents per share if it comes in and the last heard is that there are no negatives, and they are nearly there.

That is not yet in the price imo.

Well the price lost 3/4p today after yesterdays rapid advancement.

On the back of no real news I say that is sucess for the week.

Looking forward to next week and with luck a big strike.

Pan Andean Resources PLC
12 November 2004

Pan Andean Resources plc announces that it has applied to have an additional
50,000 ordinary shares of 1p each listed on the Alternative Investment Market,
pursuant to the exercise of options. Admission is expected to take place on
Thursday 18 November 2004.


This information is provided by RNS
The company news service from the London Stock Exchange

Up 1.5p without an RNS.

mm's reported short of stock!

Someone knows something, but what?

Someone knows something, but what?

Or just speculative money sloshing around SWW, coming out of PET et al. I'm in at 16.71 and hoping to sell half on the double, but that may take some time. The 50k seller is still with us unfortuanately. Then again if it goes over 30p punters will remember Friday and start profit taking, and who can blame them.

It looks as if this started with an unsubstantiated rumour and we could use another. If there is any big sustained buying then someone really does know something.

Good comments.

Most likely answer I think.

Thanks

Well that rally didn't last long - that 50k selling barsteward cost us a rise to 30p. Lets hope it isn't the Directors selling!

Well that rally didn't last long - that 50k selling barsteward cost us a rise to 30p. Lets hope it isn't the Directors selling!

Pan Andean Resources PLC
17 November 2004


Pan Andean Drilling Update from Bolivia


The El Dorado X-1004 exploratory well, located in Santa Cruz, Bolivia, has been
completed.

We encountered gas shows at target depths with good porosity and permeability in
the key target zone.

Electric logs showing the presence of gas, good porosity and permeability
strengthen our belief that the total reserves are over 400 bcf of gas and 6
million barrels of associated condensate.

Production testing was inconclusive, pending re-entry closer to the development
date.

The well confirms that the reservoir extends at the west flank of El Dorado
anticline.

The sp is doing exactly as I would hope

Sorry, it ISN'T doing exactly as I would hope

Me either.

Good chance that:

1. News of a gas show at DD leaked, causing the rise.

2. Confidence evaporated because there is no official confirmation as yet.

3. This mornings ambiguous RNS didn't help.

If anyone has any money this could be a moment of grace, giving a marvelous chance.

My money is tied up in PRE, SEY and PCI, and I have known better days than this one!

Our hour will come. Keep the faith.

Bolivian drilling is part of a drill-commitment programme. It is not supposed to generate a producing well, but to prove out the reserves and keep the grant of the lease live.
The Bolivian assets need development with the aid of a 25km pipeline .. which when it is active may produce as much as USD100k a day in revenues - maybe in 2005/6. (400bcf of gas is not to be sniffed at - literally - it's odourless)

My point is this - we are all awaiting the drilling result from the Texas Dome - where there is a pipeline already in existence (for gas) and oil production can easily be delivered to market.

Hang in - as said above - buying in at these prices could be a great opportunity. And yet - bear in mind Rothschild - he always sold too early - giving some room for the next man and getting out before a +/- correction - if you have a profit and are comfortable you can take it - plenty of people did Friday last at 30 / 32p - as Twain said - a mine is a hole in the ground surrounded by liars (the equivalent today might be a well surrounded by chat room posters).

There is plenty of value tied up in the Bolivian assets yet to be released ON top of the value being generated on a daily basis ON top of the Dome drilling - which could transform the company .. and probably will.

There are 7000 active shareholders, see the light - once the price moves it will reflect market demand / supply very quickly and give a true market, so this lull is a natural break - once the Dome hits get with the trend.

AND DYOR!

oilbarrell.com today

18.11.2004

El Dorado Reserve Numbers Add Up For Pan Andean
Pan Andean looks to have added to Bolivias swelling natural gas resource base with the success of the El Dorado X-1004 exploration well, which lies about 40 km south of the city of Santa Cruz.

Were pretty sure its commercial, said Pan Andean managing director David Horgan. Its confirmed a western extension of the El Dorado field and the presence of good to excellent sands in terms of their porosity and permeability.

Mechanical downhole problems meant the well didnt reach its total depth and the well wasnt production tested. The disappointment was tempered, however, by the success of electric log results in the primary target zone, which have strengthened the AIM-quoted companys belief that the total reserves tally more than 400 billion cubic feet (bcf) of gas and 6 million barrels of associated condensate.

Re-entry isnt cheap so well leave the production test until were ready to bring the well onto development, said Horgan. Theres no immediate gas market at the moment and weve fully discharged our well commitments on the block so theres no point incurring any more expense at this stage.

Bolivia certainly offers substantial exploration upside. TotalFinaElf recently made a large discovery near Pan Andeans Monteagudo field in southern Bolivia: the French oil giants Incahuasi discovery could hold as much as 12 trillion cubic feet of gas. But, while the economic cycle in the region is picking up, the domestic gas market is not yet ready to absorb the volumes being found and political uncertainties have stymied investment in the Liquefied Natural Gas or Gas-To-Liquids plants that could transport those volumes to energy-hungry markets elsewhere.

Pan Andean and its partner, British supermajor BP, are reviewing the project economics of a GTL project in Bolivia, which would use the El Dorado gas to generate highly marketable diesel fuel. There is some uncertainty about the tax rates and royalty rates, said Horgan. People are less inclined to invest in GTL when theres uncertainty. However, the economic cycle is rebounding strongly in Latin America, Argentina is consuming more gas and were getting a reasonable price for our gas.

While the longer term outlook in Bolivia is starting to pick up, in the short term the real gains are to be made in the US.

In the US we can get US$8 per thousand cubic feet and we can bring any finds onstream within three weeks, enthused Horgan. The prospects may be modest, just 50 bcf or 100 bcf, but we get a fabulous price and its so efficient to develop. Its completely the opposite of Bolivia, where there are vast gas targets but the prices are more modest.

Pan Andean is drilling ahead at the moment on the Blackstone Ivory-1 well on its Danbury Dome leases onshore Texas. We are now at 13,000 ft and weve seen excellent gas shows which means we know theres some gas to pay back the cost of the well, said Horgan. Its a 50 bcf target and if we find that then well drill another well immediately to maximize the gas price.

The company is already enjoying enhanced cash flows from its clutch of US properties: these include onshore production from the Vrazel, Zachery and North Bob West fields and, in the Gulf of Mexico, the High Island 52 and Gryphon fields. These stateside successes have contributed to a year of solid success, with profits rising from 360,000 to 1.2 million.

Meanwhile, the company is looking to add new acreage to its Americas portfolio and is eyeing opportunities in the Middle East and Europe. Two possible new ventures in the pipeline include an existing producer with exploration potential in Europe and an exploration joint venture in Iran.

Posted on The Motley Fool and ADVFN, so ther may be some substance to this.

Believed by me to come from tips.com

"Bear raider Evil Knievil took this(today's news)as a cue to buy arguing that drill results from the Danbury Dome field due within a week could see a huge re-rating."

SWW, Positive news, you've brought a smile to my face..........An exciting ride ahead then

Quick analysis for you:

20mcf production a day sold at $8/ 1000cf (less depletion and delivery costs - say $1) = $7 *20,000 = $140k a day
Say 360 days production a year $50.4m approximate revenue (subject to steady gas price - it was recently only $6/1000cf)

JV Share 20% = $10.080m using a conservative $1.925/ for next year gives 5.236m

PE for a producer of say 9 (until recently i would have said 8).
(75bcf is 10 years production)

Market value addition of 47m for one well.
Say market cap was 15m before the drilling, make it 60m.
Price of shares based on 99m in issue is 60p.

Analysis overlooks time value of money so figuring that in say 55p a share right now .. though gas prices will probably stay at an average of 8 or more over the producing life of the Dome so add some for that ..

Plus on top of that the ability to commercialise the reserves more quickly with a second well.
And the Bolivian assets - which ultimately may be exported ..

TIPS.COM
Pan Andean - Drilling Progress

I detect a few nerves jangling among Pan's People. We had expected news from the Danbury Dome well by Tuesday evening. I have made a few discreet enquiries and with target depth at 13,000 feet the well was at 12,800 feet this morning. Now drilling is not an exact science, the structure could begin at 12,900 feet or at 13,100 feet. But at the current rate of progress we will find out within 24-36 hours. Tomorrow is of course Thanksgiving but my enquiries suggest that this will not distract the drillers and on that basis I'd expect an announcement by Friday morning at the latest.

If Danbury Dome is a total flop then Pan Andean is worth 17-20p a share. If it comes in as some hope it is worth perhaps as much as 40p a share. On that basis, at 25.5p, the stance remains "hold."

Stolen from iii.co.uk bb. The state of play..................

Pan Andean - Drilling (non) News

26 November 2004 (16:10:53)

We had expected news from drilling at the potentially company making Danbury Dome well by Tuesday. Then Wednesday. So what is afoot? I gather that there have been two very minor snags. Hard rock wore out the drill bit. That will have taken about 36 hours to replace. And then there was a snapped wireline - a few more hours lost. So Pan Andean is probably around 2 days behind schedule. That means it should know the results either late today or over the weekend. An RNS is therefore inevitable one way or another by Monday morning. As I have noted before the shares are worth at least 19p if Danbury Dome flops. If it is a success the share price starts with a 4. At 25p the stance is a very firm "hold."

Not happy this mornin.

Bad news this am on PRE, price dropped 32%, surely overdone?!?!
Woodside drilling news bad too, meaning I've taken a hit on PMO,HNR,ROC as a consequence. Anyone care to cheer me up?

Wellm I'm more or less in the same boat, but now it will just have to a long wait for us......

Well well well reminds me of Aug 2000, more hot air than gas lol ....

reminds me of the move in 1995/6. 90p to 27p.

Net asset value per share 12.04p, so they won't go below that hopefully.

My guess is 16/17p for a time, but then struggling to go over 20p, even on a positive announcement, because of the blow to confidence.

Only have 3k free shares so can afford to sit tight, for once selling early was the right decision, it usually isn't.

I was stung in 2000 for 7.5k when it fell off the cliff down to 12 from around 45, did a 200% bounce from 12 though!

16 to sell and 17.9 to buy. MM's not falling over themselves to sell us any. A large buy order from someone who thinks like me that they are now oversold? Is this the time to buy?

Yes - just put my money where my mouth is! They cost 17.25 with charges an tax.

This is from a poster on TMF. It has been recommended 22 times.

Good luck PRE holders, good luck PET holders. Hang it, good luck all!

Starts here:-
Thank you for recommending this post to our Best of feature.

Well, for those that have been waiting, Danbury Dome has gas, not as much as anticipated, 2 principal targets non-commercial, no oil and lots of disappointment.

http://www.uk-wire.com/cgi-bin/articles/200411290700287353F.html

(full text thus)
Pan Andean Resources PLC
29 November 2004

Drilling on the Blackstone Ivory No. 1 well has penetrated the upper anomolina target sands, including the two principal targets. Initial indications are that the anomolina sands do not contain commercial quantities of gas. However, gas has been encountered in a smaller zone which could contain up to 1 billion cubic feet of gas. Drilling is continuing to 14,500 feet to penetrate the remaining smaller targets.
Contacts:
John Teeling + 353 1 833 2833
etc
----


So what did Horgan mean a few days ago when he was quoted on oilbarrel:

++ Pan Andean is drilling ahead at the moment on the Blackstone Ivory-1 well on its Danbury Dome leases onshore Texas. We are now at 13,000 ft and we've seen excellent gas shows which means we know there's some gas to pay back the cost of the well, said Horgan.....++

==

Either "Excellent" can be interpreted as 'Non-Commercial'

Or, IMHO, Horgan can best be described as having given a statement that was deliberately misleading, or, perhaps, to use an unparliamentary phrase, a liar.

This really is disgraceful. I'm glad I don't hold PRE, PET or any other Teeling vehicles

All the 17p unknown trades are buy's.

"we've seen excellent gas shows"

To be fair to the guy, to see any substantive gas show on the way down to what you believe to be a big pocket is surely good news, although excellent might be pushing it a bit.

Irish hyperbole perhaps, which could now be going on with Petroceltic and the 50% chance of a big strike. It's their revenge for us sending in the Black and Tans! We had it coming.

Pan Andean's (PRE) great hope Danbury Dome, the onshore Taxas gas play, has flopped. You would not have a chance to trade out this morning which makes me feel all the better about advising a top slice at 30.5p a couple of weeks ago. I sincerely hope that you did follow that call. The statement reads:

"Drilling on the Blackstone Ivory No. 1 well has penetrated the upper anomolina target sands, including the two principal targets. Initial indications are that the anomolina sands do not contain commercial quantities of gas. However, gas has been encountered in a smaller zone which could contain up to 1 billion cubic feet of gas. Drilling is continuing to 14,500 feet to penetrate the remaining smaller targets."

The best case scenario is thus that in a perhaps 10 days time we will hear news of a small commercial find worth a penny or two on Pan's NAV. The worst case scenario is that this is a write-off. That leaves Pan Andean with a risk-weighted NAV of c19p per share although given what I suspect will happen to US gas prices this winter that is a cautious number. Clearly the market was always going to over-react to either success or failure. It has indeed done just that, whacking the shares down to 16.75p. That leaves them trading at a discount to my cautious NAV. If the US winter is cold and/or if John Teeling pulls off one of his long promised corporate deals there is still a good bit of upside. The stance is therefore "hold

The joys of investing.........first PRE and now PCI.........BUGGER!!!
At least NBR is goin in the right direction. No need to mention PET at this point!!

Remember this share? It is now looking cheap.

You couldn't give it away!

I'll take any that you want to give away SWW!

PRe will go a bit higher in the new year IMHO. Just need to be patient. A lot of oil companies recently have suffered badly but thats just the risk. I dont think it can go much lower.

Pan Andean confident of Bolivian deal
By John Murray Brownin Dublin
Published: May 13 2006 03:00 | Last updated: May 13 2006 03:00

Pan Andean Resources, an Irish Aim-listed company, insists it can continue to operate in Bolivia following the surprise decision by the land-locked South American country to nationalise its oil and gas fields.


ADVERTISEMENT




But the company's plans could depend on partnering the Venezuelan government, controlled by populist left-wing president Hugo Chavez, in a deal that could involve the effective expropriation of BP assets.

David Horgan, Pan Andean's managing director, said: "If we do a deal, we will have to buy out BP's interest."

The company, which is led by John Teeling, is linkedto Petrel Resources, an exploration business in Iraq that controversially struck deals with Saddam Hussein's former regime and is now one of the few western companies active in the country today.

Pan Andean's hopes of overcoming the threat of nationalisation, made by Evo Morales, Bolivia's president, depend on the future of a $40m (21.2m) joint venture gas project with BP in the country. The company said it had continued in active discussions with the La Paz government on the gas project following the announcement on the nationalisation plans this month.

The project is based around developing the El Dorado field, some 40km from Santa Cruz in the south of the country. Pan Andean plans to process the gas for sale in the local market.

Pan Andean owns 10 per cent of the El Dorado block. The rest is owned by Chaco, the former state-owned company that is part of BP.

Pan Andean, valued at 12m, said it was in discussions with the Venezuelan oil ministry to tap into a $100m fund and possibly bring it in as partner.

Pan Andean hopes the nationalisation will not, in effect, cover some small operators, particularly one which is based in an officially neutral, non-aligned country.

Company officials conceded that, in doing business with the Morales government and exploiting the legal uncertainty, they might be encouraging other countries to take similar steps towards nationalisation.

However, Mr Horgan said: "We don't really care what precedents it sets. What the majors see as a problem we see as an opportunity."

Mr Horgan knows all about operating in politically difficult terrains. He also runs Petrel Resources,Professor Teeling's Iraqi oil company, which is upgrading the old Subba and Luhais oilfield near Basra in a $200m project for production by the end of 2009.

Pan Andean is well connected locally.

Mauricio Gonzalez, a former deputy energy minister and president of YPFB, the Bolivian state oil company, runs Petrolex, Pan Andean's local subsidiary.

He, like Mr Horgan, is a Harvard alumnus. They met when they were both working for the Boston Consulting Group.

Pan Andean shares were unchanged at 11.125p yesterday.

Going up?

whole load of buys recently, including 3 * 250k's 2 * 150k's and many 100k's

something brewing ?

Another bout of tall tales no doubt.

what the verdict on this company lots of directors buying and share grants!

Employ bargepole.

very stong feelings there take a look at in intermim news if they get the $20,000 a day from the well that been repaired what pe is pre going to be on, this is a buy 4 sure the directors think so only 120 millions shares in issue!

Look back through this thread.

There's not too much of it, but you should get the flavour of this Company.

pre share price is holding around the 13p mark and not dropping back to 10p for once, i think with the ceo increasing his stake to 4% 2007 will be a good year for pre!good news to come i feel/hope

Well if you have bought in, good luck.

I hope you wont need it.

The other Co they have a hand in PET is full of rumour of late, nothing yet substantiated, but I am told wait till the 7th...........

pre at 52 week high of 15.25p things are looking good! What would happen if pet purchased pre or a merger between the two considering the directors are the same?

Been thlought of before been prposed before it still did not happen.

Why would they want to give up a second salary?

Apart from that PRE and PET have no consistent issues so it does not make any sense.

As usual, dyor nag etc, and happy new year!

next news IMHO will be flow rate of HI30... from the interims...


"The pipelines are finished and the pumps should be operational in January 2007.
After testing, production will commence at an expected rate of 300 barrels a day of oil with associated gas. At current prices this implies a revenue of over $20,000 a day."

nice news hey $20,000/day = $7,300,000/year = 3.75 million increase in turnover sounds like good news to come hey!

Nice enthusiasm.

Lookie here argos7, if you are happy to invest here then it's the right thing to do.

My view is jaundiced, (and with good reason), however the Danbury Dome fiasco was a while back, and really the Board are experienced oilers who have had quite some success in the past, plus they may well be about to pull off a major coup in Iraq, so if you like them, buy them and stay with them.

I would ask that you do research, make you mind up and blame yourself if the consequences of your actions prove to not as wise as you would have expected them to be.

Oilers are a risky business, but the rewards can be equally high if things go well.

Good luck, I will be watching, and if I can positively help along the way, rest assured I will do so.

pre has new website and shares look cheap high island 30 on line soon!?
surely a buy!

I agree things are looking up in Peru and other areas - I think its a buy!!

after years and years of waiting we are at last generating income and more stikes and this baby will fly into orbit!!
A re-rating due!!

pre could have a good 2008 things are looking brighter with oil price high.

ARE WE MOVING AGAIN,OR IS IT A DREAM.

its real bugger

Is it the 20p takeover that made it go up?

nick there`s been a buyer in recent weeks and the mms are jumping trough hoops in order to fill his order.

He must be important to get mms jumping through hoops, but yes you are right someone is trying to buy a large number of shares at the moment, i wonder who.

no doubt all will be revealed.