The target is the Anomolina sands which 3D seismic surveys indicate could contain 50 billion cubic feet of gas at depths between 13,000 and 14,500 ft. The Blackstone Ivory No. 1 well, costing US$5m, will take 45 days to drill and an additional 30 days to test and complete. Pan Andean has a 20% carry in the well, which will be drilled and operated by Zinke and Trumbo ("Z&T"). Oklahoma-based Z&T is one of the largest US independent oil explorers.
Commenting, John Teeling, Chairman of Pan Andean Resources, said: "This is an important development for Pan Andean. A target of this size onshore Texas with current high US gas prices represents an exciting market opportunity. The availability of local infrastructure means rapid cash flow if we are successful.
The Danbury Dome area is a prolific gas producer and our existing exploration track record there is good, as shown by our successful Zachary and Vrazel wells. Success here would not only be much bigger but will also enhance the prospectivity of the entire lease area."
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