Drilling Report

Pan Andean Resources PLC
29 November 2004

Drilling on the Blackstone Ivory No. 1 well has penetrated the upper anomolina
target sands, including the two principal targets. Initial indications are that
the anomolina sands do not contain commercial quantities of gas. However, gas
has been encountered in a smaller zone which could contain up to 1 billion cubic
feet of gas. Drilling is continuing to 14,500 feet to penetrate the remaining
smaller targets.


Contacts:


John Teeling                 + 353 1 833 2833
Jim Finn                     + 353 1 833 2833


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