Pan Andean may begin AIM trading tomorrow
Oil and gas exploration group Pan Andean Resources has raised £2.84m (€3.77m) from institutional and private investors.
A total of 21,845,754 new ordinary 1p shares were placed at a price of 13p.
The funds will be used to drill three new wells - one offshore in the Gulf of Mexico, a second onshore in Texas and a third in Bolivia.
Offshore a 4,000 ft well will be drilled on High Island 68 to access an estimated 1 to 10bn cubic feet of gas. Drilling is expected to begin next week.
The principal exploration target is Danbury Dome onshore Texas, USA.
The target is 50 bcf of gas and associated liquids at a depth of 13,000 ft Discussions with potential farm-in partners will be completed shortly.
In Bolivia, Pan Andean's partner on El Dorado, BP (Chaco), proposes to drill a 14,000 ft well costing US$7m (€5.81m).
Application has been made for the new shares to be admitted to London's Alternative Investment Market and they could begin trading tomorrow.
