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.

From oilbarrel.com today

29.09.2004
Pan Andean Looks To Iran And Europe For Exploration Upside
AIM-quoted Pan Andean, which has long targeted Latin America and the US, is now seeking to add acreage in the Middle East and Europe to its portfolio of properties in the Americas. The Irish-based company, which at present commodity prices is enjoying significantly higher cash flows from its US assets, is keen to add some real exploration spice to the mix. Two possible new ventures in the pipeline include an existing producer with exploration potential in Europe and an exploration joint venture in Iran.

People buy Pan Andean because they want wildcats, managing director David Horgan told oilbarrel.com. Iran could be the great leap forward that Pan Andean shareholders want exposure to.

Even so, the company has made solid progress in the past year, with profits rising from 360,000 to 1.2 million. Pan Andean is ploughing the extra cash back into its existing assets: it drilled four wells in the past year resulting in three producers. In the US, the onshore Zachry and Vrazel wells helped lift output from the companys Texan properties to more than 500 barrels of oil equivalent per day. In the US Gulf of Mexico, the High Island 52 well started producing in July and production from the newly-refurbished High Island 30L field is due to restart within weeks at a rate of more than 200 barrels of oil per day. A well on High Island A68 in the Gulf was a dry hole.

Further drilling work is underway. A US$5 million well to probe the 75 billion cubic feet Danbury Dome prospect onshore Texas is due to complete next month. Its a turnkey project and its right on schedule, said Horgan.

Drilling is also advanced on the US$7 million deep El Dorado well in Bolivia.

Weve had good gas shows and expect to hit target depth in a couple of weeks, said Horgan, who recently returned from a site visit. This well has three objectives: we expect to convert 50 per cent of the probable reserves to proven, we hope to increase the liquids content because that has a big impact on revenues and we hope to turn it into another producer.

A positive result at the deep El Dorado well would not only lift Pan Andeans production numbers but also enhance the economics of its gas-to-liquids (GTL) study. The company is sitting on large reserves in the gas-rich country but lack of demand means this resource is largely dormant despite being within 25 km of the Bolivia-Brazil pipeline. The companys GTL study, in conjunction with BP and a US technology group, would be one way to monetize the resource base.

Horgan added that the outlook is looking brighter in Bolivia, even though the country remains politically unstable.

Latin America is clearly bouncing back, said Horgan. But both Brazil and Argentina are now taking more gas so the economic cycle is on the way back.

Even so, the company is keen to diversify and is keen to progress its new ventures discussions. It has, however, already dismissed possible projects in Trinidad and Venezuela as uneconomic or unworkable. It remains to be seen whether Iran and Europe clear the new venture hurdle

A 200,000 T trade. It's bad enough having these with PCI, now PRE has got into the act. I'm guessing this could be the start of a large protected order going through, in which case an upward movement tomorrow possibly. Any comments anybody?

We will all be rich................


Pan Andean Resources PLC
01 October 2004



Pan Andean Resources plc

01 October 2004

Gas Found in Bolivian Drilling

Significant gas shows have been encountered in the first target zone in the deep
El Dorado gas well near Santa Cruz Bolivia. The well, which is a joint venture
between Pan Andean (10%) and Chaco, a BP subsidiary, (90%) is currently at 4,210
metres depth with a further 80 metres to go to the final depth.

The gas shows, encountered in the Iquiri formation, are currently being logged.
Rock porosity and permeability are thought to be excellent.

Within days the target Tacabo reservoir at 4,290 metres will be drilled. It is
anticipated that a full open hole well test will follow completion of drilling.

ask is 21p and rising....

always a nice way to end the week!

Are you in these too?

Now is not the time to sell IMHO, but well into the blue is great.

Morning All,

Had this one on my watch list for a while, latest news has prompted me to jump in, so will watch with more than passing interest from now on. Good luck

regards

PTH

Wheeeeeeeee..................... 3p up and rising!!!

no, but was in 1996/7 when i rode them up to 90p...and cut them. always had them on the watch list and was tempted a few months ago but felt i had better places to keep my cash. more fool me, enjoy the ride!

Thanks prop, you are very kind with your thoughts.

23p and in come the sellers.

Hold tight,much more in this yet.

Some bugger knew yesterday and made a protected trade. Just sold half mine as I was overweight. Gas in Bolivia is OK, but gas in Texas is much better and could come shortly.

Too true, Texas is the biggie.

And I saw that yesterday.

Well, it's not what you know............

Up we go again.

Where it goes, no body knows.........

'Significant gas shows' boost Pan Andean

Sat, Oct 02 04 Irish Independent

http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1261820&issue_id=11501

JOHN Teeling's patience with oil and gas interests in Central and South America appears to have paid off with the news of "significant gas shows" which have been encountered by Pan Andean, the AIM-listed company.

The gas shows appeared in the first target zone in the deep El Dorado gas well near Santa Cruz in Bolivia.

Pan Andean shares rose 25pc on the news in London yesterday from 18p to 22.5p.

The El Dorada well, which is a joint venture between Pan Andean (10pc) and Chaco (90pc), a BP subsidiary, is currently at 4,210 metres depth with a further 80 metres to go to the final depth.

The gas shows, encountered in the Iquiri formation, are currently being logged. Rock porosity and permeability are thought to be excellent.

Within the next few days the target Tacabo reservoir at 4,290 metres will be drilled. It is anticipated that a full open hole well test will follow completion of drilling.

Jim Aughney

For all you PRE holders from UKanalyst.com:

There was more good news from Pan-Andean Resources today. The group said that significant gas reserves have been found in the first target zone in the deep El Dorado gas well near Santa Cruz in Bolivia. The well is a joint venture between Pan Andean, which owns 10% and Chaco, a BP subsidiary that is unrelated to UK-listed group Chaco Resources, which owns 90%. Rock porosity and permeability are thought to be excellent, the company said. Pan-Andean also said that, within days, the target Tacabo reservoir at 4,290 metres will be drilled. It is anticipated that a full open hole well test will follow completion of drilling. The shares added 4.5p to 22.5p.

Well it only goes to show that every newspaper interprets what they see differently.

For the record, Pan Andean hold 21% of the Bolivian deal.

Hopefully there will be a bigger bubble when they get to the required depth, and again twice for the Danbury Dome.

1 a share would be nice, but unless these finds are both significant, we may have to settle for 50p or there abouts............."Doh!"

Will PRE continue to rise next week, any comments anyone??

No idea.

There is a good chance they will hold near the 22p mark until the next bit of news, if it is good.

That is the best case senario.

When the required depth is reached, it depends what quantities have been found as to the way it will go. I can guess like anyone else, romantically I am attached because I hold, therefore biased to a hold and steep rise because that is what I want to happen.

Anyone else will have an opinion, but that is as good as mine.

If you are in then make a judgement when to sell, if you are buying imho there is more in this yet but as usual you decide and do your own research.