AGM Statement

Pan Andean Resources PLC
16 October 2002


                         PAN ANDEAN RESOURCES PLC

At the company's AGM held today, the chairman John Teeling confirmed that the
company is debt free, cash generating and producing the equivalent of 1,000
barrels of oil a day.  Further, the company's US assets are performing well.
Work carried out on the company's Hi Island 52 and 68 blocks in the Gulf of
Mexico has identified a number of drill targets where estimates of potential gas
reserves run to 100 billion cubic feet of which Pan Andean holds a 40 per cent.
interest.  The current economic gloom in Brazil makes it unlikely that the
Company will obtain a sales contract for the El Dorado gas field in Boliva for
the time being and while the Monteagudo field in Boliva continues to produce oil
and gas, changing taxation policies are likely to have a negative impact on
cashflow.

The board is currently examining three investment opportunities, two of which
are in Latin America.  All three are at an early stage of evaluation.



For further information please contact:

John Teeling     [phone]
David Horgan     [phone]
Ken Rees         0117 3317 9477 or 07802 466 567



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