New exploration blocks

Pan Andean Resources PLC
17 July 2007


Pan Andean Resources


Acquisition of new exploration blocks


  • Two new exploration blocks awarded in Peru in competitive bidding round
  • Pan Andean 100% ownership in both blocks


Pan Andean Resources PLC ('Pan Andean' or 'the Company') the AIM listed oil and
gas producer (AIM:PRE) is very pleased to announce that it has been awarded two
new exploration blocks in Peru in a competitive tender process.  Pan Andean's
new blocks are Block 131 in the central Ucayali basin, and Block 141 located in
the Titicaca basin.

Block 131 has a total area of approximately 40 000 square km and is located west
of Pan Andean's Block 114 in which exploration activities have been ongoing
since 2006.  The directors consider the block which has approximately 750
kilometers of 2D seismic, four wells, and three known oil seeps, to be highly
prospective.  The minimum work program for this block includes the reprocessing
of 500 km of 2D seismic and the presentation of a geological and geophysical
evaluation report in a period of 12 months.  Commercial terms are world class.

The Ucayali basin has become one of the most attractive under explored basins in
Peru among international oil companies and is also the host of the world class
giant Camisea gas condensate field.

Block 141 has approximately 22 000 square km and is northwest of Lake Titicaca
in the high plains of Peru.  The block is in a frontier basin.  However, the
basin has a working petroleum system having seen successful exploration
activities as early as 1875 when the Pirin oil field was discovered.  The work
program for this block includes regional geological studies, the surveying and
processing of aeromagnetic and aerogravimetric data in a period of 18 months.
Commercial terms are world class.



Managing Director, David Horgan said:

'We are pleased with the important new acreage which has been awarded to Pan
Andean.  We have identified numerous potentially valuable plays in both blocks
and look forward to executing in the near future.

Block 131 is of particular interest, with a recent discovery adjacent to our
block and previous drilling resulting in hydrocarbons shows. We believe that our
management experience and utilizing modern technologies will allow us to develop
the project successfully.

These acquisitions are very much in line with Pan Andean's growth strategy of
focusing on prospects with high exploration potential in both Colombia and 
Peru'.



Contacts:

David Horgan, Managing Director             + 353 87 292 3500

John Teeling, Chairman                      + 353 1 8332833



College Hill

Paddy Blewer                                + 44 (0)20 7457 2074

Nick Elwes



Blue Oar Securities

John Wakefield                              + 44 (0) 1179 330011



Pan Andean was founded in 1988.  The group has assets in Bolivia and Peru and
important working interests and minority holdings in the United States in the
Gulf of Mexico (offshore) and Texas (onshore).  Pan Andean's strategy is to
identify and access unique opportunities in frontier and established basins with
transforming commercial potential in South America.

This announcement has been approved by Mr. Ivan Sandrea, Director Pan Andean.
Mr. Sandrea has more than 10 years of international E&P experience.




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