Drilling Begins on Chipiriri Oil Prospect, Bolivia

Pan Andean Resources PLC
27 June 2000


      Drilling begins on the Chipiriri Oil Prospect in Chapare, Bolivia       

Pan Andean is pleased to announce that drilling has commenced on their
Chipiriri target in Chapare, Central Bolivia.                                

The well will be drilled to a depth of 3750 metres and will take
approximately 42 days to reach target depth.  Targets are the Petaca and
Yantata sands, which are of excellent permeability and porosity in the
region.

Chipiriri is well defined and has long been the favoured target of Pan
Andean technical staff and is considered to be the lowest risk of many
structures identified to date on the 777,500 hectare Chapare hydrocarbon
exploration block.

Parker Drilling will drill the well while Intergas, Western and Serppro are
responsible for providing site management and supplies, logging services and
infrastructure respectively.

Pan Andean, which has up to 100% ownership of the prospect, has a
supervisory team of engineers and geologists on site.