PAN ANDEAN RESOURCES......Discussion thread

from pre rns


LONDON (AFX) - Oil and gas company Pan Andean Resources PLC said it and
partner Sterling Energy Inc agreed to farm out High Island 52 Block, offshore
the Gulf of Mexico, to US-based Phoenix Exploration Co LP.
Under the agreement, Phoenix will have the right to drill a test well within the next four months, while Pan Andean will get a 2.15 pct royalty interest on production if the well is successful.
Pan Andean also said this agreement will not affect its current earnings of
more than 100,000 usd per month from the Gryphon royalty on the North-East
quarter of the High Island 52 Block.
The company added that Block High Island 30L is expected to restart
production of 300 barrels of oil per day by the year end.
Pan Andean and Sterling Energy share the High Island 52 Block equally



and from SEY rns


Sterling has farmed out its interest in the High Island 52 Field (50% WI),
subject to the drilling of a well in Q1 2007. This farmout excludes Sterling's
royalty interest in the Gryphon wells located in the NE quadrant of High Island
52, which have been generating in excess of $0.5 million net per month. Sterling will receive cash of $0.3 million if no well is drilled or it is not commercial.



'within the next 4 months'... from 6 nov.. so nearly 2 months gone, 2 to go