Drilling Report

Pan Andean Resources PLC
09 March 2004


                         Onshore Texas Drilling Update


The Vrazel No 2 well onshore Texas has been successfully drilled to the target
depth of 9,453 feet. The well encountered 86 feet of payable gas/oil in four
strata, including 35 feet in the lower target zone.

A completion rig is being mobilised to bring the well into production, which
should take place within one month. Reservoir characteristics will be estimated
from actual production. It is possible that stimulation may be required to
produce from the lower pay zones. Pan Andean holds a 21 per cent working
interest in this well.

John Teeling, Chairman of Pan Andean Resources said, 'This further discovery
enhances the area's prospectivity and encourages Pan Andean to maximise its
stake in the upcoming and larger Danbury Dome well'.



Contacts:

John Teeling         + 353 1 8332833             162 Clontarf Road, Clontarf, Dublin 3, Ireland.
Jim Finn             + 353 1 8332833             Telephone: [phone]
David Horgan         + 353 1 8332833             Fax: [phone]
                                                 Email: [e-mail]

Redleaf Communications                           Web: www.panandeanresources.com
Nick Lambert         [phone]




               PAN ANDEAN is an oil and Gas Producer and Explorer
            traded on the AIM market in London. Ticker symbol (PRE),
                           www.panandeanresources.com


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