PAN ANDEAN RESOURCES......Discussion thread

I dont think they are rumours, rather projects identified in an RNS...

Outlook
In early 2005, Pan Andean will drill the first of three wells on our 25% owned
Estaban property in West Texas. The target structures are medium depth, at 6,400
feet, and not expected to be difficult to complete. Maximum estimated potential
is 6 million barrels of oil, which would enable production of circa 250 barrels
of oil and 300 thousand cubic feet of gas daily.

Exploration potential continues at Danbury Dome. Once we bring the Blackstone
Ivory well on stream we will review the well log and the 3D seismic to decide on
a course of action. There are other targets on the 1,700 acre Danbury Dome base
including the 17,000 feet Golden Eye prospect. This target is independent of
both the producing shallower horizons and also the medium depth horizons, which
proved to be water-wet. Potential is up to 100 bcf of gas and associated
oil-condensate, estimated from good quality 3-D seismic. A better understanding
of the geology is needed before proceeding.

Bringing High Island 30 L back on stream is our top priority in the Gulf of
Mexico. We are re- evaluating well log and seismic data on High Island 52 to
identify potential drilling targets.

While we seek to maximise our cash flow and the potential from our existing
assets, our search for new ventures has been intensified. Projects in Europe and
the Middle East are under evaluation.

Pan Andean remains profitable, cash generative and debt-free with #2.2m cash on
the balance sheet. Profitability going forward will depend on oil and gas prices
and costs will be closely monitored. We are an explorer by orientation and plan
to advance additional drilling prospects during 2005.