Drilling in Chipiriri to Commence by May 30th

Pan Andean Resources PLC 5 May 2000 DRILLING IN CHIPIRIRI TO COMMENCE BY MAY 30TH Pan Andean has contracted the Parker Drilling Company of Tulsa, Oklahoma to drill their Chipiriri X-1 well in Bolivia. Rig 117 is currently available in Santa Cruz, Bolivia and is being mobilised today. The movement of seventy five truck loads of equipment to the site will begin on Monday 8 May. Spudding date is expected no later than 25 days from today, Friday 5 May. The drilling agreement between Pan Andean and Pride International has been dissolved. The rig dedicated by Pride to Pan Andean is currently drilling a series of wells for Amoco on a block adjacent to Pan Andean's. Your directors would not countenance further delays in drilling and were unable to satisfy themselves that the Pride rig would be available for the drilling within the necessary time frame. Progress on the mobilisation may be viewed through our website at www.panandeanresources.com Contacts: Jim Finn + 353 1 8332833 David Horgan + 353 87 2923500 David Bramhill +44 831 413360