Re Agreement

Pan Andean Resources PLC
09 February 2007

     Hunt Oil to tie in New Discovery to Pan Andean Platform and Take Over
                                  Operatorship



Highlights

•     New discovery on Hunt Oil's High Island 31 to be routed through Pan
      Andean's High Island 30, in the Gulf of Mexico
•     Discovery of both oil and gas on High Island 31 is less than 800 metres
      from Pan Andean's High Island 30
•     Reassessment underway of additional High Island 30 prospectivity:


Hunt Oil has a new oil and gas discovery on High Island 31, 800 metres from the
borders of the Pan Andean High Island 30 Block (Pan Andean 63%). Both blocks are
in shallow waters offshore Galveston, Texas.

Pan Andean and Hunt Oil have agreed that oil and gas production from the new
discovery will be tied into the Pan Andean platform. It has also been agreed
that Hunt Oil will takeover operatorship of the Pan Andean platform on High
Island 30.

This agreement will improve the cash flow from the block through a monthly
production handling fee of $40k and lower expected operating costs; it also
extends the life of the platform by an expected 7 years. Most importantly it
improves prospectivity of the High Island 30 Block where little prospecting has
been done in the past three decades, opening a new exploration option for Pan
Andean.

The long delay in bringing our platform back into operation is almost over.
Tying in the new discoveries and refitting the platform will take upwards of six
weeks. In addition, ownership changes at High Island 24 have delayed
refurbishment of the High Island 24 platform, which will pump the oil from High
Island 30 and High Island 31 to shore. It is now anticipated that all facilities
will be on stream during Q2 2007. Oil production from High Island 30 is expected
to commence at over 300 barrels of oil per day.

John Teeling, Chairman, commented

'This is an excellent deal for Pan Andean. The 7 years life of the project will
provide positive cash flow and defer any potential abandonment liability.

More importantly, this discovery is very close to our block. We are therefore
reassessing High Island 30's exploration potential as little prospecting has
been done in the past three decades.'

Contacts:

Jim Finn                        + 353 1 833 2833

Ian Rice
Corporate Synergy           [phone]

Paddy Blewer
Nick Elwes                  [phone]
College Hill




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