Pan Andean Restarts Production from Gryphon Field in the Gulf of Mexico

Pan Andean reports that, following Hurricane Rita, gas production has recommenced from the Gryphon field on block High Island 52 in the Gulf of Mexico. Production is currently at the rate of 30 million cubic feet a day. Pan Andean has a royalty on production worth in excess of a net US$140,000 a month at current gas prices.

The re-equipping of the oil producing platform on High Island 30 (Pan Andean 62.9%) is complete. Construction of connecting pipelines is also complete. Gas compression and transmission facilities to shore are being installed on a platform on block High Island 24. Completion date is late December when start-up is expected. Prior to shutdown High Island 30 was producing 300 barrels of oil per day.

John Teeling, Chairman, commented. 'This is good news. We were lucky to escape virtually unscathed from the ravages of Hurricane Rita. Our current main source of offshore income is now back in production while we are expecting a late December re-start for our oil producer. Current high oil and gas prices are very beneficial to Pan Andean. Developments in our onshore acreage and elsewhere will be reported on in the near future.'