21.10.08 - 21:11 Uhr
 

Directors: John J. Teeling Chairman, David J. Horgan Managing Director, Jim Finn, Ivan SandreaRegistered in London under No. 2231725, Registered office: 20-22 Bedford Row, London WC1 R4JS.Pan Andean Resources plcPan Andean is an oil and gas producer and explorer in South Americaand the Gulf of Mexico22nd October 2008Highlights of Chairman"s Comments at thePan Andean Resources AGMLondon, Wednesday 22nd October 2008In these very turbulent times, it is a pleasure to present a company showing profits,cash, cash flow and production.• Pan Andean is one of the few AIM listed oil and gas producers / explorers withproduction, profits and cash• Our latest drilling, the deep wildcat Danbury Dome well, onshore Texas, ismaking good progress to reaching the target depth of 13,500 feet. The target isgas in a substantial structure• The highlights of the past year were undoubtedly the successful farm-outs ofour Peruvian blocks and the acquisition of the Antorcha block in Colombia• CEPSA of Spain and Reliance Industries of India, two world class multinationals,are now our partners on blocks 114 / 131 and 141 respectively in Peru. PanAndean has a 30 per cent interest and a full carry through the first well in eachcase and a 50 per cent carry in the second. In addition, Pan Andean received $3million in back costs.• In recent weeks we have been awarded Block 161, in the Ucayali basin in Peru• The Antorcha block in Colombia, 100 per cent Pan Andean, is located adjacentto proven fields and infrastructure and is thought to be highly prospective. Therecently completed 60km seismic programme has identified drillable structuresof significant size• The targets are shallow, and subject to rig availability, drilling could begin inearly 2009• There is interest from outside parties in participating in Antorcha• Bolivia remains a no go area for investment but the potential of our El Doradogas discovery is recognised and development proposals are being examined• The US remains the cash engine of Pan Andean, generating revenue mainlyfrom offshore oil production and from royalties both onshore and offshore• Hurricane Ike caused limited damage to our platforms but onshore processingfacilities received water damage. We estimate that we will lose approximatelytwo months revenue before production is back up and running• Falling oil prices and a frozen stock market are already generatingopportunities. Our profits, cash and projects are attractive to many junior oilventures. We see a flow of prospects and projects. We can afford to beselective, looking to create the most value for our shareholders• All resolutions were passed at the meetingContacts:Pan AndeanDavid Horgan, Managing Director + 353 87 292 3500John Teeling, Chairman + 353 1 833 2833College HillPaddy Blewer +44 (0)20 7457 2020Nick ElwesBlue Oar Securities PlcJohn Wakefield +44 (0)1179 330020Simon Moynagh




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