Pan Andean Production Restarts in GOM

The board of Pan Andean announces the restart of production on High Island 30 (62.91% Pan Andean) in the Gulf of Mexico.

Production is currently about 75 barrels a day giving a net income to Pan Andean of $75,000 a month to which is added a $30,000 monthly net income from Hunt Oil who pump oil from an adjacent oil field though the platform. The one producing well on High Island 30 was closed during 2004 to allow for refurbishment, installation of gas lift and new pipelines to shore.

The operator of High Island 30, Hunt Oil and Pan Andean are examining options to increase production from the existing well while Pan Andean is bringing forward the evaluation of a potential drilling target previously identified on the block.

This announcement has been approved by Ivan Sandrea, Director, Pan Andean. Mr Sandrea has more than 10 years of international E&P experience.

John Teeling, Chairman, said, "High Island 30 is back on stream and generating positive income for Pan Andean, though the current rate of production is below expectations. Options to enhance production from the well are being examined. Meanwhile, we will evaluate a drilling target earlier identified on the block."