Pan Andean Resources profits up 7%

Pan Andean Resources, the Irish AIM-listed gas producer and explorer focused on South America and the Gulf of Mexico, has announced an operating profit of more than £1m (€685,971) for the year ending March 31, 2009.

The company has witnessed a 7% increase in profits despite the low price of gas in US markets.

All of Pan Andean’s current income is generated by its gas interests in the Gulf of Mexico.

Pan Andean is scheduled to drill its first well on its Columbian Antorcha licence in early 2010 and is now the sixth-largest oil and gas licence holder in Peru.

Three of their Peruvian blocks are joint ventured with Spain’s CEPSA and Reliance of India. The joint venture partners have committed to spend US$108 on the three blocks (114, 131 and 141) before the end of 2011. Pan Andean is carried at no cost through all of this expenditure.

John Teeling, chairman of Pan Andean Resources, said: "Pan Andean has a strong and outstanding exploration portfolio partnered with major oil companies. Oil and gas exploration takes time.

"The early years have little excitement, but the seismic mapping and structural evaluation are vital for successful drilling. Pan Andean will be drilling in Colombia within months and in Peru by end 2010."