PAN ANDEAN RESOURCES......Discussion thread

19 December 2005 - Drilling Update

Drilling has now been completed at the Blackstone Day No 1 well. There were no hydrocarbons present. The rig will now move location to drill the Neff - Geissen No 1 well, where spudding is expected within 2 days. The target is 450,000 barrels of oil and 1.5 billion cubic feet of gas at a depth of 8,900 feet. Drilling is expected to take 10 - 12 days. Zachry Exploration is the operator and Pan Andean holds a 9.375% working interest.