Trading Statement

Pan Andean Resources PLC
28 March 2006

                             GULF OF MEXICO UPDATE



*    Successful well drilled on High Island 52



*    Service boat secured to complete refurbishment of High Island 30
     pipelines



Pan Andean plc, the US oil and gas producer, (AIM:PRE) is pleased to announce
that a third well has  been successfully drilled by Gryphon Exploration on High
Island 52.



Production will commence in the near future at a rate of 20 million cubic feet
of gas a day.  The Pan Andean royalty of 1.3% on this production is worth at
current prices over $600,000 a year.



The company has been informed by Sterling Exploration our partners, on High
Island 30 (Pan Andean 62.9%), that we are next in line to obtain a service boat
which is currently working for Chevron.  Once on site, refurbishment of the
pipelines and pumping facilities are expected to take one month.  Prior to the
refurbishment, High Island 30 was producing 300 barrels of oil a day. The
improvements were necessary to maintain this level of production.



Gas production continues from our onshore Texas, Vrazel and Zachry wells.



This release has been approved by James Finn Director.



Further information:

John Teeling  Tel:[phone]
Ian Rice      Tel:[phone]


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