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.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 4 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...