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RNS Number:2683J
Pan Andean Resources PLC
27 March 2003

Drilling Success for Pan Andean Resources



Pan Andean reports an exploration success onshore Texas. A well drilled by
Zachary Exploration in which Pan Andean has a 7% interest has hit a gas
reservoir containing billions of cubic feet of gas. The success of this well
has upgraded the adjacent Pan Andean assets in the prospective Danbury Dome
area.



The well was completed to a depth of 9,000 feet and cost $850,000. It
successfully tested two separate sands of the Mattie Shapard leases in the
Danbury Dome area and has been declared a commercial success. It encountered 67
feet of payable sand containing gas. Reserve estimates range from 2 billion
cubic feet (bcf) to 12 bcf, with 4 bcf most likely. This is an excellent
result. The well is being tied into local pipelines. Production is expected to
commence within 6 weeks at 2 million cubic feet of gas (mmcf) daily.



John Teeling, Pan Andean chairman commented: "Participating in successful
exploration always boosts morale but in this case it is particularly beneficial
to Pan Andean. The well is onshore USA so operating and capital costs are low,
pipelines are close by and US gas prices are very high. But more importantly,
the find is close to our Vieman and Korenek leases in the Danbury Dome area and
so we can look forward to a substantial drilling programme on these leases in
the foreseeable future."



Other Drilling News



Activity levels are high on offshore High Island 52 in the Gulf of Mexico, USA.
Gryphon Exploration Company now produces from two wells on the leased area of
the block (Pan Andean's royalty interest is 1.4%). They intend to drill more
wells this year. Separately, Pan Andean and partners expect to drill a deep well
on the block later this year.



High Island 30 continues to produce oil and gas.



Interest grows in deeper exploration prospects on High Island 30.


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

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LONDON (AFX) - Pan Andean Resources PLC said its operations in Bolivia are continuing after media reports showed troops at some of its sites, saying military personnel were present only to protect the facilities.

The Bolivian government announced on May 1 that it was renationalising the country's hydrocarbons industry, to be followed by similar moves in the mining, forestry and agriculture sectors.

Bolivian troops seized 56 oil and gas fields in the wake of the announcement.

Pan Andean holds a 30 pct stake in the Monteagudo oil and gas field -- in which Spain's Repsol YPF holds 40 pct -- and a 10 pct interest in the El Dorado exploration block.

'Bolivia has significant untapped reserves of natural gas and the directors believe that opportunities will emerge from the current changes,' the company said in a statement.

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