Acquisition

Pan Andean Resources PLC
2 October 2000


Pan Andean has, through its subsidiary, Endeavour Oil and Gas Inc. acquired
further gas production in the Gulf of Mexico.  Interests in two leases
adjacent to existing Pan Andean operations cost a total of US$1.9m.  Cash and
a US$1.4m loan facility have funded the investment.  The investment will
increase Pan Andean's US daily output by 1.5 million cubic feet of gas.  The
new assets comprise of a 42.75% working interest in High Island A68 and a
28.5% working interest in High Island 52.  Pan Andean already holds a 62%
interest in High Island 30L.

Endeavour Oil and Gas Inc. is currently producing 400 barrels of oil and 1.6
million cubic feet a day.