Pan Andean holds a 2.15% revenue royalty on production from this well and any others to be drilled by Phoenix on High Island 52.
Pan Andean has also passed ownership of the platform on High Island 52 to Phoenix who have also assumed all abandonment liabilities estimated at $6m (Pan Andean's previous liability was 50%).
John Teeling, Chairman, commented:
"This is a great deal for all parties concerned. Pan Andean gets immediate revenue, an exit from heavy liabilities and an interest in future drilling. Phoenix, who were successful with their first well, get a valuable asset with production, revenue and improved prospectivity on the block. I am very hopeful that drilling of deeper targets on the block will occur in the near future."
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