Interim Results

Pan Andean Resources PLC
05 December 2002


                              PAN ANDEAN RESOURCES

                              INTERIM RESULTS 2002



Chairman's Statement

Pan Andean is profitable, generating cash and has little debt.  The accounts,
accompanying this statement, show the business generating net cash of over £1
million in the first six months and making a profit before tax of £213,000
compared with a loss of £108,000 in the previous year which falls to £200,000
profits, after amortization.  The cash and profits are coming from our
operations in the Gulf of Mexico, though I am hopeful that our Bolivian
operation will shortly become cash and profits generative. Our balance sheet is
strong with net assets of £12.2 million (2001: £12.7 million). All of our assets
are unencumbered.



In the first half of 2002 oil and gas prices were good in the US, though gas
prices remain low in Bolivia.  Our US operations, particularly our oil platform
High Island 30, where we hold 62.9%, performed well.  Our two gas producers,
High Island 68 (44.5% interest) and High Island 52 (44.7% interest) are
performing adequately, but work needs to be done to increase production.



High Island 52 has numerous exploration targets.  A recent report suggests as
many as seven possibilities.  The second well drilled by Gryphon on the block is
a producer.  Apart from increasing our royalty income, it gives encouragement
for exploration.



In Bolivia, we are making progress on our Monteagudo production block, where we
hold a 30% interest.  The field continues to produce about 600 barrels of oil a
day and 2 million cubic feet of gas. A plan is being produced to substantially
increase oil production by drilling a series of infill wells.  There is no
progress to report on the commercialization of the large El Dorado gas field, in
which we hold a 10% interest.  Falling demand for gas imports to Brazil and
growing Bolivian reserves have caused a glut and falling prices.



El Dorado is the best-positioned Bolivian gas field.  I am confident that it
will be one of the first developed when economic conditions improve in Brazil.
It is likely that the 90% stake in El Dorado will move within the BP group from
the current holder, Pan American, an Argentinian company, to Chaco, a Bolivian
company.



The last six months has been very active on the corporate scene.  Your board
examined, in detail, a proposal to acquire a public company with assets in
Central Europe and we pursued a project in Brazil.  We dismissed the European
venture and could not bring the Brazilian opportunity to a conclusion.
Currently, we are at an early stage in examining an exploration venture in the
Caribbean.



We are looking for an exploration with substantial upside potential where we can
use our assets, cash, technical expertise and South American knowledge. We are
well positioned to take advantage of a change in market sentiment towards
smaller companies.



John Teeling

Chairman

4 December 2002


                            PAN ANDEAN RESOURCES PLC
                       FINANCIAL INFORMATION  (unaudited)


                                                                           Six Months Ended
                                                                     30 Sept '02          30 Sept, '01
                                                                           £'000                 £'000
Group Profit and Loss
Turnover                                                                   2,412                 2,437
Operating Costs                                                          (2,166)               (2,492)
Operating (Loss) Profit                                                      246                  (55)
Interest Receivable                                                            1                     6
Interest Payable                                                            (34)                  (59)

Profit/(Loss) before Taxation                                                213                 (108)
Taxation                                                                       -                     -
Profit/(Loss) for the period                                                 213                 (108)
Profit/(Loss) per share                                                     .22p                (.11p)


                                                                    30 Sept, '02          30 Sept, '01
                                                                           £'000                 £'000
Group Balance Sheet
Fixed Assets                                                              11,706                13,337
Current Assets                                                             2,876                 2,540
Current Liabilities                                                      (1,547)               (2,071)
Current Assets less current liabilities                                    1,329                   469
Creditors (amounts falling due after one year)                             (828)               (1,072)
Total Assets less Liabilities                                             12,207                12,734

Share Capital and Reserves                                                12,207                12,734


                                                                    30 Sept, '02          30 Sept, '01
                                                                           £'000                 £'000
Group Cash Flow
Operating Profit before Depreciation                                       1,013                   645
Increase in Working Capital                                                (458)                  (43)
Net Cash Inflow from Operating Activities                                    555                   602
Returns on Investments and Servicing of Finance                             (33)                  (53)
Capital Expenditure                                                        (164)                 (897)
Increase (Decrease) in Cash                                                  358                 (348)


 Copies of this announcement will be sent to shareholders and will be available
 for inspection at the Company's registered office at 20-22 Bedford Row, London
                                   WC1R 4JS.


Pan Andean Resources        162 Clontarf Road, Dublin 3         Tel: [phone]
                                                                Fax: [phone]
                                                                Email:[e-mail]
                                                                www.panandeanresources.com

Registrars & Transfer       Computershare, Heron House          Tel: [phone]
Office:                     Corrig Road. Sandyford Ind. Estate  Fax: [phone]
                            Dublin 18


                  Pan Andean is listed on AIM in London (PRE)


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