Pan Andean in talks over Columbian drilling

Irish oil and gas exploration company Pan Andean Resources is in talks with at least one large, international company about its…

Irish oil and gas exploration company Pan Andean Resources is in talks with at least one large, international company about its proposed drilling operation in Antorcha in Columbia.

David Horgan, Pan Andean managing director said he hoped to conclude the talks within the next month so that drilling would start by November.

He said the sharp fall in oil prices since last year meant project financing was now more complicated as “costs are still at levels that assume $100-barrel”. As a result Pan Andean may take a joint-venture approach, he said.

However, Mr Hogan remains confident the company can raise the estimated $7 million needed for the project and noted that the economic slowdown meant good quality rigs were available locally.

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Pan Andean plans to drill six wells in the Central Magdalena Valley.