Pan Andean Resources PLC
11 November 1999
Highlights of Chairman's Statement
Pan Andean to Drill
* Pan Andean is preparing to drill the Chipiriri prospect on the 775,000
hectare Chapare concession in Central Bolivia. The well site is located
some 23 kms from our Todos Santos well drilled in 1996 which had significant
hydrocarbon shows.
* The Chipiriri target contains a structure, which holds out the prospect of a
medium sized oil strike. The impact of such a strike on a company the size
of Pan Andean would be significant.
* The expected spud date is early 2000. The well will take 50 days to drill
to 3,750 meters and will cost $5 million.
* The well manager will be Intergas the leading drill services company in
Bolivia.
* The well is being financed by a consortium composed of two US companies, two
Bolivian companies and Pan Andean. Pan Andean is likely to retain a 50%
share in the consortium.
* Pan Andean retains the rights to buyback 100 per cent. control at a 35 per
cent. premium.
* A placing is being finalised which will fund commitments and may enable the
drilling of an additional well.
* While the sharp focus of activity is Bolivian exploration early stage
discussions have taken place with parties who may provide additional
hydrocarbon opportunities in areas outside of Bolivia.
Contacts:
John Teeling, mobile +353 87 258 1178
David Horgan, mobile +353 87 292 3500
David Bramhill, mobile +44 831 413360