Pan Andean shares rise on Texas gas find

Shares in Irish AIM-listed oil and natural-gas explorer Pan Andean Resources rose by almost 30 per cent today after announcing…

Shares in Irish AIM-listed oil and natural-gas explorer Pan Andean Resources rose by almost 30 per cent today after announcing a gas find at its drilling site in Texas.

Pan Andean shares jumped 29 per cent by midmorning after saying its drilling programme had encountered significant deposits in two of the three target wells.

By 2.45pm the share price had moderated to 10.25 pence, a gain of 17 per cent on the day giving the company a market capitalisation of £12.2 million (€15.1 million).

The explorer said surveys indicated the Anomalina Sands could contain up to 28 billion cubic feet of gas at depths of between 13,000 and 13,500 feet.

It said drilling stopped at 13,200 feat, 25 feet into the Anomalina 2 Sands, the main target. Pan Andean is in the process of perforating and testing the sands.