Acquisition Completed

Pan Andean Resources PLC 23 June 2000 Pan Andean the AIM Listed Oil Explorer Announces Completion of its acquisition of Endeavour Pan Andean Resources PLC ('Pan Andean') announces that it has completed the acquisition of the entire issued share capital of Endeavour Oil & Gas Limited ('Endeavour') for $6 million (£3,987,241 at an exchange rate of £1:$1.5048) in cash and the issue of 9.165 million new ordinary 1p shares in Pan Andean at 50p each, valuing the total consideration at £8,569,741. Application has been made for these shares to be admitted to trading on AIM and it is expected that admission will take place and dealings will commence on 26 June 2000. * Endeavour is a private UK company whose principal activities are oil and gas production, development and exploration, principally in the Gulf of Mexico. * For the year ended 31 May 1999, the net liabilities of Endeavour amounted to £181,980 and the loss before taxation was £106,065. * Endeavour now produces over 500 barrels of oil per day and 1.6 million cubic feet of gas from interests in four properties, two in the Gulf of Mexico and two in Texas. * The acquisition brings to Pan Andean proven and probable reserves independently assessed at over 1 million barrels of oil and 3 billion cubic feet of gas or 1.5 million barrels of oil equivalent ('BOE') with significant upside potential of an additional 5 million BOE. * Significant production upside exists at High Island in the Gulf and at a new property, the Malakoff, onshore Texas. Drilling will take place over the coming months at Choke Canyon, an area with significant gas potential. * Pan Andean will exploit the upside in a number of low risk exploration plays onshore, where prospect sizes of up to 100 billion cubic feet are already leased, and in potential reserve additions to existing production, particularly in the two offshore leases. * The Endeavour management is a team of highly experienced professionals, bringing strong technical and exploration expertise to Pan Andean. In commenting, the Chairman, John Teeling said: 'The developments we announce today, together with the imminent spudding of our Chipiriri X-1 well in Bolivia are important steps. We need to grow Pan Andean into a meaningful exploration and production junior. Endeavour brings not only production and cash flows, but strong industry experience and skills in both management and shareholders. We are entering an exciting phase in the development of our Company'. For more information visit the website at http://www.panandeanresources.com or call 00 353 1833 2833.