AGM Statement

Pan Andean Resources PLC
19 September 2001


                            Annual General Meeting

                             Pan Andean Resources


The Annual General Meeting of Pan Andean Resources plc was held today, 19
September 2001.

The Chairman, Dr. John Teeling, gave shareholders details of the Company's
current performance:

'I am happy to report that negotiations to commercialise the El Dorado gas
field in Bolivia have now reached an advanced stage.  Obviously it is not
possible to say when these negotiations will conclude, or if they will
ultimately be successful, but we remain optimistic.  Meanwhile, Pan Andean has
presented proposals to Pan American to increase our equity interest in El
Dorado to 30%.

Pan Andean also holds a 2.1% production royalty on the Gryphon discovery on
the High Island block 52 in the Gulf of Mexico where production is currently
running at a rate of 10 million cubic feet of gas a day.  Oil and gas
production in both the US and Bolivia is holding up well and Pan Andean's cash
flow remains positive, despite the recent downward trend in gas prices in the
US'.



For further information contact:

Dr. John Teeling, Pan Andean Resources plc, Tel: [phone]

Barrie Newton, Rowan Dartington & Co. Limited, Tel: [phone]

Ken Rees, Winningtons, Tel: [phone] / Mob: [phone]