Strategic Entry into Colombia

Pan Andean Resources PLC
20 June 2007


Pan Andean Resources plc


Strategic entry into Colombia

  • Pan Andean opens representative office in Bogota, Colombia
  • Partnership with AGN E&P Consultants to focus on exploration and
    production opportunities within the region
  • Strong local management team led by Jose Luis Acevedo (Ex PDVSA and
    Avante)

Pan Andean Resources PLC ('Pan Andean' or 'the Company') the AIM listed oil and
gas producer (AIM:PRE) is very pleased to announce that it has opened a new
strategic avenue, commencing operations in Bogota, Columbia. The branch will
focus on exploration and production opportunities in Colombia, in addition to
neighboring countries in which the company does not currently have a presence.

The Branch will be managed by Mr. Jose Luis Acevedo, who has more than 16 years
of experience in the South American oil and gas sector. Prior to joining the
group, Mr. Acevedo was the General Manager of Avante Colombia coordinating
operations in association with the National oil company (Ecopetrol). He
previously worked for Metapetroleum in Colombia as operations manager and for
Petrobell in Ecuador in a similar capacity. Mr. Acevedo worked for 12 years in
PDVSA (Venezuelan national oil company) in various technical roles in reservoir
engineering, drilling engineering and project evaluation.  He has a degree in
Civil Engineering from Rafael Urdaneta University and a Magister in Petroleum
Engineering from Universidad Maria Baralt/CIED PDVSA.

To further aid the Company's progress towards identifying value enhancing
projects Pan Andean has partnered with AGN Exploration Petroleum Consultants, a
highly respected Colombian firm that provides integrated E&P consulting services
with over 30 years of local E&P experience. AGN and Pan Andean will work
together to evaluate and develop exploration and production opportunities in the
region.

The Board of Pan Andean believes that Colombia has an attractive environment for
exploration and development.  Over 9 bn barrel of oil and 21 Tcf of gas have
been discovered in world class basins.  The country produces more than half a
million barrels of oil per day, has an excellent oil and gas infrastructure and
has been a net oil exporter since the mid 1980's.  Impressive annual economic
growth for the past few years, combined with significant reforms, and
improvements in the security situation, now make the country one of the most
attractive exploration and development plays in the region.  Foreign investment
is strong, particularly in natural resources, oil and gas legislation is modern
and transparent, with royalties ranging from 5% to 25% depending on production
volumes, and effective corporate income tax rate of around 35%.


Managing Director, David Horgan, said:

'After considerable study, we are delighted to have made this move into
Colombia. Colombia is a proven world class hydrocarbons province, with excellent
infrastructure and a modern operating environment.

Our highly experienced local team, led by Jose with the assistance AGN, is
currently evaluating a number of potential projects, all of which could add
considerable value to our portfolio. We look forward updating the market on our
progress in due course'


Contacts:

David Horgan, Managing Director                 + 353 87 292 3500
John Teeling, Chairman                          + 353 1 8332833

College Hill
Paddy Blewer                                    + 44 (0)20 7457 2074
Nick Elwes

Blue Oar Securities
John Wakefield                                  + 44 (0) 117 9330020


Notes to editors

Pan Andean was founded in 1988 as an oil & gas exploration and production 
('E&P') company with a focus in South America.  The group has assets in Bolivia,
and Peru and important working interests and minority holdings in the United
States in the Gulf of Mexico (offshore) and Texas (onshore).  Profitable, cash
generative and debt free, Pan Andean's strategy is to identify and access unique
opportunities in frontier and established basins with transforming commercial
potential.


Directors:     John Teeling, Chairman, David Horgan, Managing, Guy Delbes (FR), 
                      Stefano Borghi (ITL), Jim Finn, Company Secretary

                   Registered Office: 162 Clontarf Road, Dublin 3, Ireland





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