Drilling Report

Pan Andean Resources PLC
06 December 2005



Pan Andean is pleased to announce the spudding of the Blackstone Day No 1 well
in Brazoria County, Texas. Drilling is expected to take 7 to 10 days to reach
the target depth of 10,600 feet where it will test the Middle Frio F-5 and F-6
sands. The expected reserves are 8 billion cubic feet of gas.



Pan Andean holds a 9.375% working interest in this 391 acre lease.


Contacts:


Jim Finn          + 353 1 8332833


Bell Pottinger Corporate & Financial
Nick Lambert   [phone]




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