Drilling Report

Pan Andean Resources PLC
6 April 2001

                     GAS DISCOVERY IN THE GULF OF MEXICO

The recently drilled farm-in well on the Pan Andean (PRE:L) owned Endeavour
Oil & Gas High Island 52 lease in the shallow water Gulf of Mexico has been
announced as a gas discovery.

Gryphon Exploration Company, a subsidiary of Cheniere Energy Inc have (AMEX:
CXY), announced that the well is being completed and will be on production
within 90 days.

Endeavour currently owns a 2.1% overriding royalty with an option to convert
to a working interest of 11.6%. No estimate of reserves has been released by
the operator, Gryphon, but pre-drill estimates were in the range 30 to 50 bcf.
A flow test is expected in the coming days prior to releasing the drilling
rig.

Endeavour hold a 43.5% working interest in existing High Island 52 production.
Recent operations on the platform, involving the installation of compression
facilities, have seen production increase to 2,500 mcf per day. With gas
prices still strong in the US, currently $5.20 per mcf, and widely expected to
remain high or even increase, this asset is proving to be a highly successful
acquisition.

PAN ANDEAN (PRE:L) IS AN AIM LISTED OIL AND GAS PRODUCER IN BOLIVIA AND THE
GULF OF MEXICO.

Contacts:

John Teeling   [phone]

Jim Finn          [phone]

David Horgan  [phone]

www.panandeanresources.com