The well will take about a month to complete and will be drilled to a depth of around 8000 feet. The well is a side track well and will target a zone expected to have gas reserves. If successful, the well will be tied back to existing facilities and will be put into production. Additional exploration wells, targeting deeper zones, may be considered by our farm in partner.
Pan Andean holds a 50% working interest in HI 52 and a 1.32% royalty on lease number 508, located in the north east quarter of the block. Lease number 508, was farmed out in 2000 to Gryphon Exploration. Gryphon drilled three successful wells currently producing gas. The royalty to Pan Andean from this production is in excess of $150,000 a month.
Managing Director, David Horgan said:
Our US assets continue to provide important cash flow to Pan Andean while also having upside potential. We are delighted that Phoenix has seen the opportunity of HI 52 and have been able to obtain a drilling rig.
We are also continuing to work with our partner Hunt Oil to bring HI 30 back online. A jackup rig is repairing leaks in the pipeline to shore. These leaks were discovered while testing the pipeline prior to production. This work is expected to be completed within weeks and following successful testing production is expected to commence.
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