Drilling Report

Pan Andean Resources PLC
20 July 2004



Pan Andean is pleased to announce that a workover on block High Island 52 has
been successful. The well, which will shortly come into production, is expected
to produce at 1 million cubic feet of gas a day. Pan Andean holds a 50%
interest.


Contacts:

 
John Teeling, Pan Andean Resources -             Tel: [phone]
James White - Redleaf Communications -           Tel.[phone]
Ian Rice - Rowan Dartington -                    Tel.[phone]




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