Interim Statement, 1 April 1999 - 30 Sept 1999

Pan Andean Resources PLC
6 January 2000


PAN ANDEAN RESOURCES PLC - INTERIM STATEMENT 

1 APRIL 1999 - 30 SEPTEMBER 1999

I am writing to you during a period of hectic activity for our company.  All
systems are go on the 3750 metre deep Chipiriri oil exploration well on our
Chapare block. Our permits are issued, the road is under construction, the
project managers are contracted while the rig is expected to become available
in mid February.  Pan Andean is the operator.

As operator we are pleased to have widely experienced oil men on our staff. 
Our local managing director, Marcello Paz, ran his own oil exploration vehicle
prior to joining the Bolivian government as oil minister.  Mauricio Gonzalez,
our long-term associate, ran the state oil company (YPFB) while Jorge Flores,
our former chief executive, who is now building the road for us was head of
operations at YPFB.  

As operator, we are strongly supported by our contractors.  Intergas, a
subsidiary of Baker Hughes of the USA, will act as overall project manager.
Pride International will supply the rig, a 1500 h.p. machine currently
drilling a deep well for Dong Won a Korean company operating in Bolivia. 
Serppro, a large Bolivian well contractor, is undertaking the road and pad
construction.  Serppro built the road and pad for our 1996 well.  ENSA are the
environmental consultants.  All of these companies are operating on a part
cash part equity participation basis with Pan Andean holding buyback options.

Building the road to Chipiriri is the critical path on the venture.  The route
chosen uses the existing road to the Todos Santos well. At present we are
completing the repair of this road.  From there we push to the Chipiriri a
distance of 16km.  Up to date progress can be monitored on our website
www.panandeanresources.com. The cost of the well is still estimated at $5
million. 

We are on target to spud before the end of the first quarter. Once drilling,
the targets should be reached between 45 and 50 days.  Our targets are the
Petaca and Yantata sands already discovered in the Todos Santos well.  Oil
seeps in the well area indicate that hydrocarbons have been present.  Now we
need good horizontal and vertical seals.

The recent placing and open offer was a resounding success.  Having set out to
raise $3 million to fund the cash cost to Pan Andean of Chipiriri X-1 we
raised over $6 million.  The support of the investment community and of our
shareholders is appreciated and is a reflection of the strength of our story. 
We now have the ability to drill an additional well in 2000.  

I think that it is important for shareholders to realise exactly what has been
achieved.  Pan Andean held only a 20% interest in the 1996 drilling.  One
further well would have diluted Pan Andean to 10% and for the third and
subsequent wells we would have had to subscribe for our percentage. Now, we
can own 100% of the venture.  Our agreement with our partners enables us to
buy out their interest for 135% of their cash expenditure.

Oil exploration is a risky business.  For the successful the rewards are great
but remember that there are more dry wells than hits.  We are using state of
the art technology to maximise our chances of success but substantial risks
remain.

We have been in Chapare since 1991, over $35 million has been spent to date. 
Many of you have shown great loyalty over the years.  I hope that our efforts
are successful.

John J Teeling
Chairman




PAN ANDEAN RESOURCES PLC
FINANCIAL INFORMATION
(unaudited)


                                                 Six Months Ended
                                       30 September 1999    30 September 1998
                                                   £'000                £'000

Group Profit and Loss
Turnover                                               -                    -
Operating Costs                                       77                   63
                                                   -----                -----
Operating Loss                                        77                   63
Interest Receivable                                    6                   17
                                                   -----                -----
Loss before Taxation                                  71                   46
Taxation                                               -                    -
                                                   -----                -----
Loss for the period                                   71                   46
                                                   =====                =====
Loss per share                                      0.15p                0.10p
                                                   =====                =====

                                       30 September 1999    30 September 1998
                                                   £'000                £'000
Group Balance Sheet
Fixed Assets                                       1,196                1,105
Current Assets less current liabilities              220                  414
                                                   -----                -----
                                                   1,416                1,519
                                                   =====                =====
Share Capital and Reserves                         1,416                1,519
                                                   =====                =====

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     Tel:   [phone]
                        Dublin 3              Fax:   [phone]
                                              Email: [e-mail]
                                              www.panandeanresources.com

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

Pan Andean is listed on AIM in London.