Drilling Report

Pan Andean Resources PLC
13 November 2000



PAN ANDEAN TESTS MAJOR
GAS PROSPECT

The El Dorado X-1002 well near Santa Cruz, Bolivia has been drilled to a
depth of 4550 metres.

Mud log readings were very encouraging, encountering six rather than the
expected three or four reservoir sands.  Depths were thicker than
anticipated and gas shows were very strong and consistent.

Following these encouraging indications, the operator Pan American (majority
owned by BP Amoco and minority owned by Bridas), ran a series of electric
logs which confirmed the earlier indications. Preparation for production
testing the main sandstone formations is underway.

If the tests confirm the log indications, this reservoir has the potential
to become a significant asset for Pan Andean.

A previous discovery well, on the targeted structure, flowed 20 million
cubic feet of gas daily.