Pan Andean Resources Encounters Gas in Bolivian Well

Pan Andean Resources says the El Dorado X-1004 exploratory well, located in Santa Cruz, Bolivia, has reached target depth of 4,290 meters. Gas shows have been encountered in both the Guanaco and Tacobo sands. Following completion of casing, full production testing will commence. This will last approximately three weeks.

The company also reports that Total has made a major gas discovery on Incahuasi, a neighboring block to Monteagudo in which Pan Andean has a 30% interest. The discovery may contain up to 12 trillion cubic feet of gas. The find was made in the lower Devonian Huamampampa sands which are also present in the Monteagudo block.

Current oil and gas production in Monteagudo is from shallower horizons. Pan Andean, together with partners Repsol and Petrobras, will drill the Huamampampa when market conditions are appropriate. The positive results at Incahuasi encourages our optimism.