Irish-owned oil company Pan Andean has expanded its Texas drilling operation after it acquired total ownership of a 1,000-acre drilling site in the Danbury Dome area for $250,000.
The deal also resolves a legal dispute between Pan Andean and its partner at the El Paso site.
Pan Andean said that the blocks contain potential reserves of 75 billion cubic feet of gas at depths of 12,000 to 14,000 feet as well as the Golden Eye prospect at 17,000 feet, estimated to contain up to 100 billion cubic feet of gas. This potential is the equivalent to 30 million barrels of oil.
Pan Andean chairman Mr John Teeling described the deal as very good for both sides. Pan Andean and El Paso each acquired their interest in this acreage with ongoing legal problems that have now been resolved.
Mr Teeliong said it is highly likely that Pan Andean will involve a partner in the new drilling programme.
Pan Andeam also has production sites in the Gulf of Mexico and Bolivia. The company is also looking at exploration prospects in the Caribbean, South America and other sites in the Gulf of Mexico.