AGM Statement

Pan Andean Resources PLC
01 November 2007

                            PAN ANDEAN RESOURCES PLC



      Pan Andean is an oil and gas producer and explorer in South America

                             and the Gulf of Mexico





                     Highlights of the Chairman's Comments

                        Delivered at the Pan Andean AGM

                           1st November 2007, London



The redirection of Pan Andean is almost complete and benefits should begin to
flow in the short term.



1.         Pan Andean has three sources of income in the Gulf of Mexico.



  • The Gryphon royalty on Block HI 52 produces a royalty of over $150,000 a
    month.



  • The Phoenix takeover of the platform on HI 52 is complete and the
    commencement of production on their shallow gas discovery is expected in
    November 2007.  Pan Andean has a 2.15% revenue royalty expected to yield
    $50,000 a month.



  • Oil and gas production from our 62.9% owned, Hunt Oil partnered Block HI
    30, is at the commissioning stage.  Hunt Oil, who are the operators, expect
    production to flow at a daily rate in excess of 300 barrels.  Current and
    projected oil prices make this very attractive.



2.         Onshore US activities continue to provide about $15,000 of net income
a month. We are currently drilling the Estaban field (25% Pan Andean).



3.         In Peru, Pan Andean is very active and now holds three large
exploration        blocks 114, 131 and 141.



  • We have completed our environmental work on 114 and are in advanced
    discussions with a potential partner.



  • The two blocks awarded to Pan Andean in 2007 will have a formal signing
    ceremony in late November.  We are working on the available data and have
    again had interest from potential partners.





4.         In Colombia, we are making considerable progress.  We are assessing
numerous projects in highly prospective areas.  We have applied for one block
under an exclusive basis and hope to update the market in the very near future.




5.         In Bolivia, our oil and gas operation in Monteagudo (Petrobras 20%,
Repsol 50%) continues to operate despite political and economic uncertainty.



  • The El Dorado gas discovery (BP 90%) increases in strategic importance as
    the demand for gas in the Southern Cone outstrips supply.



Pan Andean is cash positive and cash generative with no debt.  The Phoenix deal
in the Gulf eliminates an abandonment liability of $6m plus.  We will use the
cash being generated by our Gulf operations to pursue our high potential, but
higher risk exploration ventures in South America and elsewhere.



All resolutions were passed at the meeting.


Contacts:

Pan Andean
David Horgan, Managing Director                       + 353 87 292 3500
John Teeling, Chairman                                + 353 1 833 2833

College Hill
Paddy Blewer                                          [phone]
Nick Elwes

Blue Oar Securities Plc
John Wakefield                                        [phone]
Simon Moynagh



www.panandeanresources.com




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