Chairman's Statement-Rplcmt

Pan Andean Resources PLC
23 October 2000


The issuer has made the following amendment to the Chairman's Statement
announcement released today at 12:30 p.m. under RNS No 8958S.

In paragraph 5 line one where 3% should have read 30% and not as previously
stated.

All other details remain unchanged.

The full corrected version is shown below.


                           PAN ANDEAN RESOURCES PLC                           
       Highlights of the Chairman's Statement at the AGM of Pan Andean,       
          the AIM listed oil company, Monday 23 October 2000, London          

*  Pan Andean is now a vibrant oil Exploration and Production company.

*  The acquisition of Endeavour in June 2000 and Petrolex in September 2000
   gives Pan Andean daily production equal to 1300 boe.

*  At current oil and gas prices that level of production results in gross
   revenue of over $1 million a month.

*  Exploration remains the main focus.  We continue to look for high potential
   projects in Bolivia and elsewhere. 

*  Currently two wells are being drilled in Bolivia, at Monteagudo (30% PA
   interest) in the South, and El Dorado (10% PA interest) which is adjacent
   to the Bolivia-Brazil pipeline.

*  The Monteagudo well has reached target depth and has two interesting zones.
   A production test is likely.  The indications are oil rather than gas.

*  The El Dorado well is expected to reach the first target depth within five
   days.  A gas reservoir in the region of 200 billion cubic feet to 600
   billion cubic feet is the expected outcome.  

*  Significant additional exploration potential lies in the El Dorado block.

*  We continue to evaluate options on our Chapare block.  The decision not to
   drill the third hole was correct.  Serious civil unrest has broken out in
   the area due to military efforts to eradicate the coca crop.  A decision on
   what to do in Chapare must be made within six months.

*  In Bolivia, significant investment opportunities have been offered to Pan
   Andean.  These involve both exploration and production ventures.

*  In the coming year we will increase oil and gas production in Bolivia and
   in the US, undertake further exploration in Bolivia and expand our oil and
   gas activities in other countries.