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.

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.


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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.