Pan Andean Finds Gas at High Island 52 Well
Pan Andean Resources says that the exploration well drilled on High Island 52 is a commercial discovery. The well was drilled to the target depth of 8,700 feet and encountered over 160 ft net pay of hydrocarbon column in three separate sections.
Production casing has been set and flowlines are being prepared for production, which is expected to commence at an initial level of 5 million cubic feet of gas per day. Pan Andean retains a 2.15% royalty on all revenues from this well.
Pan Andean's farm-in partner Phoenix Exploration drilled the well. Under the terms of the agreement Phoenix have now earned into the block and will take over the platform and related abandonment liabilities, estimated at US $6 million (Pan Andean: 50%).
Pan Andean holds an existing 1.32% revenue royalty on 3 wells drilled by Gryphon Exploration in the northeast quarter of the block High Island 52. To date, Pan Andean has received over US$8 million from the Gryphon royalty David Horgan, Managing Director of Pan Andean commented:
"This is an excellent discovery for both Pan Andean and Phoenix Exploration. High Island 52 in the Gulf of Mexico has been very good to Pan Andean. The existing Gryphon royalty produces over USD140,000 a month, royalties will flow from Phoenix in weeks and we have exited or abandonment liabilities. More importantly this discovery means that additional wells will be drilled on the block."
- Pan Andean Makes Headway at Peruvian Ucayali Blocks (Jun 18)
- Seismic Acquisition Under Way over Block 114 in Peruvian Jungle (May 19)
- Pan Andean Commences Survey over Block 141 in Titicaca Basin (May 15)
Company: Gryphon Exploration more info
- Pan Andean Finds Gas at High Island 52 Well (Sep 12)
- Cheniere Reports $93.3M Loss for Q4 (Feb 28)
- Gryphon Exploration Acquired by Woodside Energy for $297 Million (Sep 01)
Company: Phoenix Exploration more info
- Phoenix Reaches TD at Marathon Well (Aug 31)
- Phoenix Drills Ahead at Marathon Well (Jul 13)
- Hercules 204 Ready to Spin Bit at Main Pass (Apr 14)