Pan Andean is pleased to announce the spudding of an exploration well on our
Vrazel lease which is part of the Danbury Dome area onshore Texas.



The well has as targets three zones which may contain up to 7 billion cubic feet
of gas. At a cost of $1 million, the well will take 12 days to reach the target
depth of 9,200 feet and, if successful, can be tied in to existing pipelines
within three weeks. Pan Andean holds a 21 per cent interest in the project with
Houston Petroleum Inc, the majority partner.



Meanwhile, formal discussions continue in relation to the 75 billion cubic feet
target on our Danbury Dome leases. Pan Andean currently holds 100 per cent of
these leases and is examining proposals which may lead to a 20 per cent carry on
a $ 3 million 14,000 foot deep well.



John Teeling, Chairman commented, "Actions to develop our operations in the
highly prospective Danbury Dome area of onshore Texas continue to bear fruit.
Following the successful discovery on our, Zachery lease, I am very hopeful that
the Vrazel well will further enhance, not only our cash flow, but also the
potential and prospectivity of our 100 per cent owned Danbury Dome leases.

Here's another snippet for all you PRE holders from Oilvoice.com:

Pan Andean Resources Drilling Update
Tuesday, October 19, 2004


--------------------------------------------------------------------------------
Latest Oilvoice Headlines

Sonoran Energy Establishes Presence in Kazakhstan
Hydro Appoint New head of Communication in Oil & Energy
Kerr-McGee and Stone Energy Announce Exploration Agreement
EnCana Participates in Promising Deep Water Gulf of Mexico Production Test and Discovery
Toreador to Spud Exploratory Oil Well Onshore Turkey; Company Updates 2005 Operational Plans
Discuss these headlines in the OilVoice Forum
El Dorado, Bolivia
The El Dorado X-1004 exploratory well, located in Santa Cruz, Bolivia, has reached target depth of 4,290 meters.
Gas shows have been encountered in both the Guanaco and Tacobo sands. Following completion of casing, full production testing will commence. This will last approximately three weeks.

Monteagudo, Bolivia
Total have made a major gas discovery on Incahuasi, a neighbouring block to Monteagudo in which Pan Andean has a 30% interest. The discovery may contain up to 12 trillion cubic feet of gas. The find was made in the lower Devonian Huamampampa sands which are also present in the Monteagudo block.
Current oil and gas production in Monteagudo is from shallower horizons. Pan Andean, together with partners Repsol and Petrobras, will drill the Huamampampa when market conditions are appropriate. The positive results at Incahuasi encourages our optimism.

Danbury Dome, Texas
Drilling the 14,500 foot Black Stone Ivory well is on schedule and has passed 10,000 feet. Target zones are about 20 days away.

I have bailed on PRE, as I note an article for the second time in the Times saying that the Bolivian Government are under ressure to Nationalise the Gas discoveries.

BP and Total have large assests in Bolivia, fortunately the mm have not yet put 2 and 2 together for PRE who also hold a large share.

I know it should have gone up further with the Danbury Dome about to reveal it's secrets, bvut money in the bbank is exactly that, money in the bank.

The Bolivian article in the Times is positive for PRE they may end up paying less tax

Never mind!

It is assumed foreign oil companies will have to pay 50% tax but there is international pressure for that change not to go through, the British threatening not to cancel Bolivia's debt is part of that pressure so if they win that is a benefit to PRE over the current thinking of 50% tax.

Bolivia is not realy priced in fully in Pre's share price , if it was it would be a lot lot higher.
Also PRE are looking at suppling the local market with oil condensate so i guess they wouldnt pay export tax on that anyway.
The key to Bolivia is if they can find a market to sell gas to ie Brazil, if they can do that then paying 50% tax is still beter than the present.

We need to focus on Danbury Dome.

AGM this week.

NAV is around 20p so good upside.

Thank you.

Much clearer than the Times, and fuller too!

Worth buying a few PRE just for the certificate.It is a real masterpiece!

I must ditch this nominee account.

I like nice art!

Had a few this morning.

Get them while they are cheap!

Running up again this morning (fat chance of me adding again at 18p as I had hoped)...
Gonna be knocking at 24p again very soon..., significant if it manages to break that decisively...
Danbury (and/or El Dorado, though that's less important) news imminent...
No guarantees of success, of course (but this is Texas)...

The sudden increase in volume and price can partly be attributed to DES holders taking some profit and buying in as they are the next best :-

Waiting for news hot riser.

Up at 24p again... Critical level... News imminent...
One of my largest holdings, and I have a target of 40p...

Update: Fell back off 24p - right on cue.
Now gotta see if a few runs-down-and-up will break it or not...

only 40p, might be better to hold tight and get a better picture of developments.

Nick - :)

Her we go again.

Nice bit of news would go down a treat!

say +5 immediately or so..........

Broken through 24p. Is this it? Onwards and upwards
:)

Give it a kick........

.......and another.......

My mid shows 25p.

Maybe the earlier poster was right that news must be coming.

Hats off if it happens.........

So much for 24p ?! :)

Lets hope that is the last time we see 24p.

The power of concentration.

It worked.

Now for 30p