AGM Statement

Pan Andean Resources PLC
28 October 2004


                                 Pan Andean Resources plc


   NEWS RELEASE

ADDRESS
162 Clontarf Road
Dublin 3
Ireland

CONTACT NUMBERS
Tel: [phone]
Fax: [phone]





28th October 2004



             Highlights of comments made by John Teeling, Chairman,

                                  AGM, London

                           Thursday 28th October 2004





  • This is a good time to be an oil and gas producer. With US natural gas
    prices above $8.00 per thousand cubic feet, our Gulf of Mexico and onshore
    Texas production / royalties are generating good cash flow.



  • Production from our Vrazel, Zachery and North Bob West onshore fields is
    on target while High Island 52 and the Gryphon royalty in the Gulf of Mexico
    are good earners.



  • Within five weeks, our revamped High Island 30 oil producer will be back
    on stream. The net production to Pan Andean is 200 barrels of oil per day.



  • We have high expectations for the Danbury Dome well which is currently
    drilled to a depth of 11,000 feet and will hit the target depth of 13,500
    feet within 15 days. Indications to date are positive.



  • Production testing at our El Dorado well in Bolivia is underway. It is
    anticipated that this well will be declared commercial and will increase the
    proven gas reserves in the field. El Dorado awaits a market either to Brazil
    through the pipeline 25 kms away or as feedstock for a small gas to liquids
    plant (GTL).



  • The feasibility study into an 1,800 barrel of diesel per day GTL plant on
    the El Dorado site is finished and the results are positive.



  • A number of new exploration projects are under evaluation. One, onshore
    Texas, another in the Middle East and a third, an existing European gas
    producer with exploration potential.





Contacts:

Pan Andean Resources

John Teeling / David Horgan                       Tel: [phone]



Bell Pottinger Corporate & Financial
Nick Lambert                                      Tel: [phone]



Rowan Dartington
Barrie Newton                                     Tel.[phone]




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