The Investment Column: Pan Andean back in the hunt
Tuesday 12 August 1997
The first joint venture, hopes for which drove Pan Andean's share price into the stratosphere at the end of last year, did not survive the apparent leak from BHP in October that the first well was not commercially viable.
That bungled announcement sent Pan Andean shares into a free all from which they have never recovered. From a high of 135.5p they lost three quarters of their value in days and have languished ever since.
For a company that has never made a profit and never paid a dividend in almost 10 years of existence, the delay is disappointing. With BHP in effect forfeiting its stake in the venture, however, Pan Andean has been left with 100 per cent of the Chapare concession, an area the size of Wales, on which $30m worth of exploration work had been carried out and paid for by its former partner.
Chairman John Teeling says the chances of finding oil in commercial quantities are still good, and he hopes to clinch a new deal which will allow Pan Andean to keep perhaps 30 per cent of the equity. Meanwhile the new Bolivian Hydrocarbon Law which took effect last month opens up 11 state-owned oil and gas fields for tender on easy terms which even a tiddler can meet.
Up 2p to 35.5p, the shares focused yesterday on the potential, which could be mouthwatering but as likely will end in disappointment. As ever, an enormous punt.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price Palestinian children are paying for Israel’s war with Hamas
Iraq crisis: Government forces execute 255 Sunni prisoners in revenge for Isis atrocities, says report
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...