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.