Trading Statement

Pan Andean Resources PLC
01 December 2005

                               PRODUCTION UPDATE


Highlights



  • Gas production restarts in Gulf of Mexico
  • Re-equipping of oil producing platform nears completion


Pan Andean, the AIM listed oil and gas producer (AIM: PRE), is pleased to
announce that, following Hurricane Rita, gas production has recommenced from the
Gryphon field on block High Island 52 in the Gulf of Mexico.  Production is
currently at the rate of 30 million cubic feet a day.  Pan Andean has a royalty
on production worth in excess of a net US$140,000 a month at current gas prices.

The re-equipping of the oil producing platform on High Island 30 (Pan Andean
62.9%) is complete.  Construction of connecting pipelines is also complete.  Gas
compression and transmission facilities to shore are being installed on a
platform on block High Island 24.  Completion date is late December when
start-up is expected.  Prior to shutdown High Island 30 was producing 300
barrels of oil per day.

John Teeling, Chairman, commented.  'This is good news.  We were lucky to escape
virtually unscathed from the ravages of Hurricane Rita.  Our current main source
of offshore income is now back in production while we are expecting a late
December re-start for our oil producer.  Current high oil and gas prices are
very beneficial to Pan Andean.  Developments in our onshore acreage and
elsewhere will be reported on in the near future.'

Pan Andean is an oil and gas producer onshore and offshore Texas as well as in
Bolivia.


Contacts:

Jim Finn            + 353 1 8332833


Bell Pottinger Corporate & Financial
Nick Lambert     [phone]


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