Dublin company Pan Andean Resources has announced the successful drilling of an exploration well in the Gulf of Mexico.

The exploration well is situated on Block High Island 52, off the coast of Texas in the Mexican Gulf.

The well was drilled by the company's farm-in partner Phoenix Exploration, of which Pan Andean holds a 2.15% revenue royalty.

The well was drilled to the target depth of 8700ft and encountered three zones of gas bearing sands. Production casing is now being set prior to testing.

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The company has an existing Revenue Royalty on HI Island 52, the location of the latest discovery, and expects to recommence oil and gas production within weeks on HI Island 30.

In the US, Pan Andean produces onshore in Texas from a number of small wells and offshore in the Gulf of Mexico.

Pan Andean was established in 1988 to explore for oil and gas in Bolivia, where it currently produces from the Monteagudo Field where the company is in partnership with Repsol and Petrobras. Pan Andean has a Bolivian joint venture with BP over the large El Dorado gas discovery.

Pan Andeanâ's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange.

The company is headquartered in Dublin, Ireland, with regional offices in Bolivia and Peru.

(LC/SP)