Pan Andean Resources, the AIM listed exploration company, has acquired two oil/gas fields in Bolivia from YPFB, the State oil company, for $2.75 million (£1.8 million).
The acquisitions will be funded by a private placing which will probably raise around £1 million and the remainder will come from debt. The first field, the Tataranda, is located on the Argentina Bolivia pipeline. The second field, the Warnes, is located adjacent to the growing Santa Cruz energy market. The Tataranda field produces oil and gas and has two deep gas exploration targets. The chairman, Dr John Teeling, said the company might look for a partner for the development but will keep 100 per cent of production. Pan Andean said it has an estimated reserve of 60 billion cubic feet of gas and 3 million barrels of oil.
It is now producing over 400,000 cubic feet of gas and 100 barrels of oil per day which are fed into the Argentina Bolivia pipeline. The Warnes field has gas reserves capable of supplying a 30 megawatt power station as well as having a deeper gas play.
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