Acquisition, etc

Pan Andean Resources PLC 10 May 2000 Pan Andean Resources PLC ('Pan Andean') is pleased to announce that it is in advanced negotiations to acquire the entire issued share capital of Endeavour Oil & Gas Limited, a private UK company whose activities are oil and gas production, development and exploration, principally in the Gulf of Mexico. The transaction, which is expected to be completed within fourteen days, brings added technical expertise to Pan Andean and a positive earnings stream in addition to exploration potential. The total cost of the acquisition will be no greater than £9 million, payable in cash and shares. Further details will be issued to shareholders when the acquisition is completed. Pan Andean's broker, Rowan Dartington, has placed with certain institutional and private investors up to 8,000,000 new ordinary 1p shares at 50p per share to assist in the transaction. Application has been made for the new ordinary 1p shares to be admitted to listing on the Alternative Investment Market of the London Stock Exchange. It is expected that the new ordinary shares will be admitted to listing and that dealings will commence on 17 May 2000. Meanwhile, the current focus of Pan Andean remains on the successful drilling of the Chipiriri X-1 well in Bolivia. The Parker drill rig 117 is currently on its way to site and, after assembly, it will commence drilling no later than May 30. Drilling is expected to take 42 days.