Drilling Report

Pan Andean Resources PLC
21 March 2005


               Pan Andean drills Estaban oil well, onshore Texas

Pan Andean Resources plc, explorer for, and producer of, oil and gas in the USA
and South America, is pleased to announce the start of an exploration well on
the Estaban Prospect, onshore Texas.

The J.B.Cooper No 1 well is expected to take 21 days to drill to the target
depth of 6,400 ft. Targeted production is 200 barrels of oil daily. A further 8
wells are planned if this one is successful. The overall potential is 5 to 6
million barrels of oil. Pan Andean has a 25% interest in the well which will be
drilled and operated by Buffalo Natural Gas Ltd.

Drilling of the Zackry Korenek No. 2 well in the Danbury Dome area in which Pan
Andrean has a 7.3% interest, is expected to start on Tuesday March 22nd.

Any gas output generated by these wells can be quickly tied in to existing
infrastructure to benefit from high demand and strong gas prices in the US
market.


Contacts:

John Teeling     + 353 1 8332833
Jim Finn         + 353 1 8332833
David Horgan     + 353 1 8332833

Bell Pottinger Corporate & Financial
Nick Lambert     [phone]


                           www.panandeanresources.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange