Pan Andean Resources to Spud Well on High Island 68

Pan Andean Resources says a mid-May spud date has been set for its High Island A68 well, a 4,000 foot well located in the shallow waters offshore the Gulf of Mexico. Pan Andean holds a 50% interest in this block.

The target is a 3 – 10 billion cubic feet (bcf) reservoir. Drilling will take 15 days. The estimated cost is $1.8 million

John Teeling, Chairman of Pan Andean Resources, said, "High U.S. gas prices make exploration attractive. In the coming weeks and months we are drilling a number of wells to exploit our U.S. properties. The High Island 68 well is low risk. We know the geology and we have the infrastructure in place. The target is 3 bcf of gas, but it could be greater."