Interim Results-Amendment
December 19 2003 - 6:29AM
UK Regulatory
RNS Number:4781T
Pan Andean Resources PLC
19 December 2003
Pan Andean Resources announces that the RNS announcement 4482T made earlier
today contained errors in the statement accompanying the interim results for the
six months ended 30 September 2003. In the first paragraph of the original
announcement reference was made to the Company having operated in an unstable
environment in Bolivia for fifteen years - this should have read a stable
environment. Below the second paragraph, the first bullet point should have
referred to a value of the Gryphon royalty of $100,000 a month rather than
#100,000 a month. In the second bullet point, the monthly processing fee should
have read $7,500 rather than US$7,500. Finally, the last bullet point before the
end of the statement referred to a deep 2.4 million cubic feet gas target which
should have read 2.4 trillion cubic feet. The full text of the revised
announcement appears below and the corrections have been highlighted.
PAN ANDEAN RESOURCES
19th December 2003
Pan Andean is profitable, cash generating and debt-free. High oil and gas
prices are good for our operations in the Gulf of Mexico and in Bolivia. We
have exploration upside on our existing assets that should lead to drilling
during 2004. We are in negotiations that may lead to the acquisition of a stake
in a large, producing oil field with considerable upside potential. The
sensitivity of the deal make it impossible to reveal more at this stage. Having
operated in a stable environment in Bolivia for fifteen years, we are concerned
at the current political instability. Further investment is not possible in the
current climate.
We continue to produce oil, gas and income from two areas; the Gulf of Mexico
and Bolivia. In the Gulf we obtain income from:
* The 1.92% Gryphon royalty on High Island 52 currently producing $100,000 a
month.
* The use of the High Island 52 platform by Forrest Oil giving a monthly
processing fee of $7,500 to Pan Andean.
* Production on High Island 30 averaging 290 barrels a day and 0.8 million
cubic feet of gas a day. This is worth $100,000 a month to Pan Andean.
* Income from our 7% interest in the Zachary well onshore Texas beside
Danbury Dome which contributes $22,000 monthly.
In Bolivia, the Monteagudo field continues to produce nearly 500 barrels of oil
and condensate together with 1.5 million cubic feet of gas daily. We are working
with our partners Repsol and Petrobras to improve efficiencies. It should be
possible to increase production by 400 barrels daily through a limited number of
workovers and in-field drilling. The field is profitable and should provide
cash to Pan Andean in the coming years.
We have a number of ongoing exploration activities:
* On High Island 52 Gryphon is likely to drill a third well in 2004.
* We are in farm out negotiations to bring in a partner to drill the 75
billion cubic feet gas target on Danbury Dome onshore Texas. Drilling will
cost US $3 m.
* Our large El Dorado gas deposit in Bolivia, where our partner is BP, is
scheduled to be developed in 2005. Conservatively, it could produce at
least 40 million cubic feet of gas and 1,700 barrels of sweet condensate oil
for 20 years. We are programming an eight well development plan. Because
of the Bolivian gas overhang, we are also working on a Gas-to-Liquids
project.
* We await gas market opportunities before drilling the deep 2.4 trillion
cubic feet gas target and 55 million barrel of oil target at depth in the
Monteagudo field. It is not possible to flare gas, so liquids and gas must
be marketed together.
We are an exploration company with the skills, record, cash and character to
undertake high potential exploration. Potential risk and economic uncertainly
makes it uneconomic to explore in Bolivia. In the past year we have looked at
and rejected numerous proposals. The current project, if we can finalise it,
will transform the company.
Contacts:
David Horgan, Managing Director Tel + 353 87 292 3500
John Teeling, Chairman Tel + 353 1 833 2833
Jim Finn, Director Tel + 353 1 833 2833
Pan Andean Resources
Financial Information (unaudited)
Six Months ended
30 Sep 03 30 Sep 02
#'000 #'000
Group Profit and Loss
Turnover 1,920 2,412
Operating Costs (1,586) (2,166)
Operating Profit 334 246
Interest Receivable 1 1
Interest Payable (34) (34)
Profit before Taxation 301 213
Taxation 0 0
Profit for the period 301 213
Profit per share 0.31p 0.22p
Six Months ended
30 Sep 03 30 Sep 02
#'000 #'000
Group Balance Sheet
Fixed Assets 11,190 11,706
Current Assets 3,345 2,876
Current Liabilities (1,262) (1,547)
Current Assets less Current Liabilities 2,083 1,329
Creditors (amounts falling due after one year) (1,189) (828)
Total Assets less Liabilities 12,084 12,207
Share Capital and Reserves 12,084 12,207
Notes
The figures for the six months to 30 September 2003 and 30 September 2002 are
unaudited. The financial information set out above does not constitute full
statutory accounts within the meaning of section 240 of the Companies Act 1985.
Copies of this announcement will be sent to shareholders and will be available
for inspection at the Company's registered office at 20-22 Bedford Row, London
WC1R 4JS.
This information is provided by RNS
The company news service from the London Stock Exchange
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