Recent RNS by Pan Andean Resources confirms it will be seeking to raise further funds via a share placing.

Will RAB - the often present investor in smaller resource exploration and extraction companies be pumping it's funds in?

If so expect a share price rally. Stock is badly undervalued - it says it is sitting on a gas reserve of almost 1 trillion cubic feet, which in npv terms could be worth as much as $145m - the company valuation is approximately 15m at todays price of 15p a share.

Worth watching at least .. current bid-offer spread is approx 8%. Expect this to narrow as stock liquidity improves on back of fund-raising and news flow. Could be the next JKX as following a similar strategy in the USA.

Agreed - the drilling results are now overdue as the company was expected to spud its first well in Mid-May. There are three wells in total which will be drilled so there should be some positive news flow - especially if the guidance on the company website comes true.

PER RNS on 26th April 2004
Drilling Update

Pan Andean Resources (AIM: PRE), the oil and gas explorer with interests in the
Gulf of Mexico and Bolivia announces drilling updates at High Island 68 and its
Vrazel well.
A mid May spud date has been set for a 4,000 foot well on High Island 68 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 m.

Completion work continues on the 21% owned Vrazel well in the Danbury Dome area
onshore Texas. Efforts are being made to bring into production the payzones at
the bottom of the 9,000 foot well. A flow rate of 1 million cubic feet a day
has been obtained, but it is uncertain as to whether it can be maintained. The
alternative of moving to payzones two and three further up the hole will be
decided on within days. These zones appear positive on the electric logs and are
expected to be commercial producers.

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.

The Vrazel well is a hit but we do not yet know how good. The payzone at 9,000
feet is attractive but it is proving very difficult to get a consistent gas
flow. The next two payzones are good and are not expected to pose any problems.
It takes three days to connect to local pipelines so we should be in regular
production within three weeks.


And
Pan Andean Resources PLC
08 June 2004

Pan Andean Resources has noted press comment today concerning the Company
proposing to conduct a fundraising. The Company can confirm that it is in the
final stages of concluding a fundraising and will make a further announcement in
due course.

Turnkey are filling for chapter 11 and that can open the door for PRE to take advantage. As far as I am aware Turkey have 25% of DD while PRE have 20% free carry + 15% optional if DD is a success. So basically the drilling which is costing our partners $5m-$6m for 80% stake must be worth a huge amount .From their latest accounts yesterdayTurnkey have said the following

The Corporation has drilled the Vieman #1 on the southwest flank of the Danbury Dome in Brazoria County Texas. The Vieman #1 drilled into the objective Frio Anomalina sand at 13,424' measured depth and took a major kick from gas influx. The objective interval came in high as predicted, but the casing became stuck after drilling 26' of clean sand and bringing the well under control. The well encountered the secondary "S" sand objective high as well. A decision has been made to cement the productive casing where it became stuck and attempt a completion in the Anomolina sand. If unsuccessful, the "S" sand will be completed. The Turnkey Vieman #1 is located up dip from the Humble Vieman #1 well that had a calculated absolute open flow potential test of 85 million cubic feet per day, but watered out in 1965. The target formation is defined by 3-D seismic data. The Corporation drilled the well under a turnkey contract and is also participating with a 25% working interest.


So the Gas is there and turnkey had suggested a couple of ways to take it out of the ground A decision has been made to cement the productive casing where it became stuck and attempt a completion in the Anomolina sand. If unsuccessful, the "S" sand will be completed.

The timing of this is unbelievable and we can end up with 20%+15%+25% = 60% of a huge gas find in Texas.

On top of this they have 4 state of the art rigs drilling in Texas which they would have to sell on the cheap. Why not buy the one in DD and keep the workers as we have lots more targets in Texas to drill ourselves.

Turning back to the AGM JT did say we are not only very much undervalued and in real threat of a takeover bid but we are also in a position to take over a distressed seller that meets our need at very cheap prices.



http://www.marketwire.com/press-release/Turnkey-E-and-P-Inc-TSX-TKY-921518.html

Proactive Investors One2One Forums

The directors of Pan Andean Resources (AIM: PRE), Caza Oil & Gas (AIM: CAZA) and Northern Petroleum (AIM: NOP)
will be presenting:

Tuesday the 7th April 2009

Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB


The presentations will start at 6:00pm and finish at 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canape and wine reception.



Register FREE Here - http://www.proactiveinvestors.co.uk/register/event_details/47



If you have any problems registering or queries please email action@proactiveinvestors.com


Nearest tube stations are Green Park, 5 minutes walk, and Bond Street, 7 minutes walk.

David Horgan interview, click HERE

interesting statement today. could be very positive in near future