Acquisition & Add. Listing

Pan Andean Resources PLC 27 September 2000 Pan Andean has acquired Bolivian oil exploration and production company Petrolex SA for 3 million Pan Andean shares at 15p per share with options over a further 1 million shares at 20p per share for 3 years. Depending on the level of reserves discovered in a well currently being drilled, Pan Andean may assume up to $5 million in debt of Petrolex's previous owners. Application has been made for the 3 million new ordinary shares to be admitted to listing on the Alternative Investment Market and it is expected that admission will take place and that dealings will commence on 2 October 2000. The deal brings Pan Andean non-operating interests in two Bolivian oil concessions. They have 30% of Monteagudo and 10% of the prime El Dorado field, which are currently being drilled with target depths expected to be reached by mid-October. Says Pan Andean Chief Executive David Horgan: 'The El Dorado block is a prime location, 25 km from the entrance to the Bolivia Brazil gas pipeline and 50km from Bolivia's fastest growing city and industrial centre, Santa Cruz. The infrastructure is good and the weather is not a constraint for transportation and development. The current exploratory well, El Dorado X-1002, is the culmination of an intensive exploration program over the prospect. A 600km state-of-the-art 3D seismic program was completed in 1998 followed by the deepest well in Bolivian history - 6,750 meters, completed in July 1999. Hydrocarbon bearing horizons were discovered in the Devonian (both Upper and Lower) with shows in the Carboniferous sands. Testing has been centred in the Upper Devonian and already produces commercial gas at a rate of 20 million cubic feet and oil at 364 barrels per day. El Dorado X-1002 is attempting to confirm the Upper Devonian reservoir, and is currently being drilled by Argentine company Servoil, at 3,600 meters. The Iquiri and Los Monos target sands at 4,200 meters with a projected final depth of 4,550 meters.' The Monteagudo block is located in the South of Bolivia and has produced oil and gas for many years, supplying Argentina and local demand. The well being drilled at present is the last in a multiple programme. The previous well has completed a production test and is expected to come on stream by end September. Production levels at Monteagudo have risen to 1,300 barrels of oil and 13m cubic feet of gas a day.