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.
Sales of the tablet are set to fall again, say analysts
Follow the latest updates from the Monday night Premier League fixture
Met Police confirm there was a 'minor disturbance' and no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Concerns raised phenomenon is threatening resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
Peter Biaksangzuala died from his injuries in hospital on Sunday
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 2 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Lynda Bellingham dead: Loose Women presenter dies after battle with colon cancer
Sophia Loren: How I rejected Cary Grant and 'pulverised' Marlon Brando with my eyes
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Oscar Pistorius sentence: Athlete's wealth and notoriety provoke an overdue debate on South African prisons
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...