Drilling in Chipiriri to Commence by May 30th

Pan Andean Resources PLC
5 May 2000




DRILLING IN CHIPIRIRI TO COMMENCE BY MAY 30TH

Pan Andean has contracted the Parker Drilling Company of Tulsa, Oklahoma to
drill their Chipiriri X-1 well in Bolivia.   Rig 117 is currently available in
Santa Cruz, Bolivia and is being mobilised today.  The movement of seventy
five truck loads of equipment to the site will begin on Monday 8 May. 
Spudding date is expected no later than 25 days from today, Friday 5 May.

The drilling agreement between Pan Andean and Pride International has been
dissolved. The rig dedicated by Pride to Pan Andean is currently drilling a
series of wells for Amoco on a block adjacent to Pan Andean's. Your directors
would not countenance further delays in drilling and were unable to satisfy
themselves that the Pride rig would be available for the drilling within the
necessary time frame. 

Progress on the mobilisation may be viewed through our website at
www.panandeanresources.com


Contacts:

Jim Finn + 353 1 8332833
David Horgan + 353 87 2923500
David Bramhill [phone]