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.

What does Pan Andean do ?

Pan Andean formed in 1988 is listed on AIM with 7000 shareholders.
Pan Andean is debt free, cash positive producing oil & gas in the US and Bolivia.
Pan Andean has proven and probable reserves of over 3 million barrels equivalent in the US and over 2mbbls proven and probable oil equivalent in Bolivia.
Pan Andean has exploration projects in the US and in South America.
Pan Andean Oil & Gas Production
Pan Andean produces over 300 bbls oil a day.

Pan Andean Development Strategy
Pan Andean's strategy is to lever management's hydrocarbon experience, South American knowledge and financial market access, to develop into a significant oil and gas producer in South America. Political uncertainty is delaying implementation.
Bolivia will be the prime energy supplier to Brazil. We have the best placed reserves in El Dorado and up to 3.6 tcf deep gas potential at Monteagudo.
A major investment in producing assets, with exploration potential, in Venezuela is on hold due to political uncertainty.
An acquisition in Argentina, which has production and exploration potential, is developing slowly due to uncertainty.

THE FUTURE

The future looks good. Pan Andean is profitable and cash generative with significant drilling opportunities on our US assets and an exciting GTL project in Bolivia. Our increasing cash flow, AIM listing, liquid share and 7000 shareholder base attracts many exploration and development proposals. We are examining high potential projects in the Americas with one close to a decision. Outside of the Americas we are working our way through three projects. We are fully aware of the need to build shareholder value.

John Teeling

Chairman

Nice tight spread this morning. Bid/offer now 15.2 to 15.44p

It's hard to believe that this stock has such a tiny market cap of only 18 million.

From another BB:

This is the first time that anything definite has been written about drilling plans in Bolivia? Everything up to now has been rumour? If so this is tremendous news. A joint drilling program with BP would probably make it into the newspapers.

BP are already exporting gas to Brazil, but the referendum on the 18th... wey hey a week to go, would mean a bigger customer base (and perhaps a better price). At $7m it sounds like a proper job to me !

Perhaps we should ring Pan up and ask why no RNS ? My guess would be that its down to BP, but a megga blue sky project to us, is small spuds to BP.

We should get an RNS on Monday. Their drilling ship should be at its new location in the Gulf of Mexico by then.

The buyers return!

We should get an RNS today or on Tomorrow to say the drilling rig has arrived at its new location in the Gulf of Mexico and is about to start drilling. This should be enough to provoke speculative interest in this stock.

All this 'drilling news' reminds me of four years ago when the price dropped from 70 odd p to 12p on the 'drilling news'!!!!! much hot air but NO hot OIL!!!
I seem to remember. DYOR ;

chartist2004: Point taken, but the company is doing much better now. It still has a tiny market cap of only 18 million. Have a look at the heading of this thread and compare it to the following announcement. On top of this, those huge finds in Bolivia could bear fruit, especially as BP are behind the biggest of them.

30 June 2004 Pan Andean, the listed oil and gas producer, announces successful completion of Drilling Onshore Texas Pan Andean plc., explorers for and producers of oil and gas in South America and in the U.S., is pleased to announce that the Vrazel No. 2 well in the Danbury Dome area onshore Texas, is a commercial discovery expected to produce at a rate of 1.9 million cubic feet of gas per day. Tie in to existing pipelines will be completed within days. Pan Andean holds a 21% interest in this project.

John Teeling, Chairman said, "Finally Vrazel is commercial. Drilling confirmed
the presence of a number of gas zones. Technical problems greatly delayed the
completion process, but now all is in place for commercial production. Current
gas prices make this a profitable venture for Pan Andean. Expected production
and cash flow from Vrazel complements our other successful producer in the area,
The Zachry - Korenek No. 1 discovery. These two discoveries bode well for the
forthcoming drilling program on our 100% owned properties in the Danbury Dome
area. Pan Andean expects to make an announcement specific to this venture in the coming weeks.

The City is full of hot air.

That is how it works!

A couple of nice buys went through around Noon.

RNS Number:6275A
Pan Andean Resources PLC 08 July 2004
"The rig is being moved to block High Island 52, where Pan Andean holds a 45% interest. Operations on this block will commence early next week."
............
13 July 2004
Pan Andean:
Rig Name: PD 11-J
Previous Names: HERCULES 11, CLIFFS 11, MARINE 11
Rig Owner: PARKER DRILLING
Previous Owners: CLIFFS DRILLING, MARAD, MARINE HOLDING
Rig Manager: PARKER DRILLING
Operating Status: DRILLING
Operator: STERLING
Date Available: NOT KNOWN
Country: UNITED STATES
Area: GULF OF MEXICO
Block/Well: High Island 52
Water Depth: 42
Only 42 meters water depth, and status = Drilling !!

hi grevis
please enlighten a confused old soul
drilling at 42 metres is good?

Production boost for Pan Andean
AFX
Successful workover on High Island 52 means it will soon come into production

Pan Andean Resources PLC said a workover on block High Island 52, in the Gulf of Mexico, has been successful and that the well will shortly come into production and is expected to produce at 1 mln cubic feet of gas a day.

Pan Andean holds a 50 pct interest.

On July 8, the company said it plugged and abandoned the High Island A-68 well, also in the Gulf of Mexico, after gas shows were considered insufficient for commercial production.

grevis2 where did you obtain the rig information above please?

Missed this one till today, but I will say I admire the way John Teeling makes everything sound like he has the Leprechauns on his side! (".....but with skill and luck..........")

If he has then the Company will probably find it's pot of gold!

I post this late because of the delightful way it has been written.

22th July 2004 - Danbury Dome Update

Drilling to 14,500 feet at a cost of $4m will begin within 60 days.
Additional acreage leased covers the entire target zone.
Joint venture with three US companies. Pan Andean has a 20% free carried interest in the first well.
Pan Andean, explorers for and producers of oil and gas in South America and in the US, has put together a package of leases covering 1,700 acres in the Danbury Dome area of Texas. Work done by Pan Andean has identified prospects with potential reserves of 75 billion cubic feet of gas, at depths between 13,000 and 14,500 feet. The Anomalina sands at 13,000 feet will be drilled within the next 60 days. The well, costing $4m will take 45 days to drill and an additional 30 days to test and complete.

The lease area also covers the separate Golden Eye Yegua/Vicksburg prospect which may contain up to 100 billion cubic feet of gas. This totally separate target is estimated to be at 17,000 to 18,000 feet.

A consortium has been formed to drill Danbury Dome in which Pan Andean will have a 20 per cent free carry through the first well. The consortium is made up as follows:

Pan Andean 20%
Palace Exploration Company/Zinke & Trumbo, Inc. (Operator) 55%
LaRose Texas Interests, Inc. 20%
Radiant Energy, L.C. 5%

Zinke & Trumbo, Inc. who will operate the consortium, is a large privately owned US oil and gas company, with specific expertise in drilling deep onshore wells.

Commenting, John Teeling, Chairman said, "Danbury Dome became a high priority target in 2003 when we acquired 100 percent ownership of the disputed Korenek lease. Our studies suggested that the target reservoir stretched between our Korenek and Vieman leases but we did not have rights on the intervening ground. With great skill and patience, our US team negotiated and acquired leases on the ground between Korenek and Vieman. We now believe that we have leases covering the entire structures.

Deep onshore drilling is not only expensive but technically challenging. We wanted a partner with a strong track record in this area. Zinke & Trumbo, Inc. has been built on successful onshore gas drilling. We are delighted to have them as a partner and operator.

High gas prices make Danbury Dome a most desirable target. Drilling is uncertain but with skill and luck, we could have a very lucrative discovery".

Contacts: John Teeling, Pan Andean Resources - Tel: +353 1 8332833
James White/Emma Kane - Redleaf Communications - Tel.+44(0)207 955 1410
Ian Rice - Rowan Dartington - Tel.+44(0)117 933 0020

Pan Andean Resources PLC
05 August 2004



Pan Andean - News Release DRD X-1004



Pan Andean spuds Bolivian Well
Pan Andean & Chaco (BP Group) launch due diligence of Gas-to-Liquids
technology



Pan Andean Resources, explorers for and producers of oil and gas in South
America and in the US, is pleased to announce start of drilling of DRD X-1004 on
its gas and condensate field at El Dorado, near Santa Cruz, Bolivia. The
interest is held through its subsidiary, Petrolex.



The well spuds this week and will be drilled to 4,290 metres (14,100 feet). The
operator is our 90% partner, Chaco, which was formerly part of the Bolivian
National Petroleum Company (YPFB) and is now part of the BP Group. The well is
projected to take 90 days, including testing. Targets are the Petaca sands
(approximately 1,600m), the Ichoa Formation (2,200m), Iquiri and Los Monos
(4,000 to 4,500m).



In addition to anticipated exploratory upside, Pan Andean expects to convert
approximately 60% of the currently classified probable reserves to proven,
subject only to development of the Brazilian gas export market. This equates to
100 billion cubic feet of gas and 1.6 million barrels of oil-condensate.



Following recent remapping and regional work, technical staff believes that the
DRD X-1004 well may increase the proportion of oil-condensate contained in
future production from the reservoir. Pan Andean also hopes that significant
new reserves may be added to the west of a geological fault running through the
structure.



Pan Andean and Chaco have launched a Gaffney, Cline technical validation / due
diligence review of the Energy Technology Gas-to-Liquids project. This
technology offers a pioneering low capital cost method of generating diesel fuel
from the gas available at El Dorado. This may offer accelerated access to
market.



Managing Director, David Horgan, commented: 'The El Dorado X-1004 well marks a
return to vigorous development of our South American interests. After three
years of regional retrenchment, energy demand is bouncing back. High oil prices
make gas-to-liquids projects economic. Pan Andean hopes that these developments
will position El Dorado for early development as a GTL project and/or to exploit
the rapidly recovering gas demand in Brazil and Argentina'.



Contacts:

David Horgan, Pan Andean Resources: Tel.+353 1 833 2833
Jim Finn, Pan Andean Resources: Tel.+353 1 833 2833



James White - Redleaf Communications: Tel.+44(0)207 955 1410
Ian Rice - Rowan Dartington: Tel.+44(0)117 933 0020


This information is provided by RNS
The company news service from the London Stock Exchange

looking good for a news update on start of DD drilling

Anyone know why the share value is jumping around?

Is it the reason given by currypasty above, or something to do with ElDorado.

I have doubled up in the hope of something good coming.