Pensana Regulatory News (PRE)

5 May 2006 12:43

Pan Andean Resources PLC05 May 2006 The directors of Pan Andean announce that operations continue at theirMonteagudo oil and gas field in Bolivia in which Pan Andean holds a 30% interest(40% Repsol, 30% Petrobras) and at their exploration block El Dorado held 10%Pan Andean, 90% Chaco. The Supreme Decree Number 28701 issued on May 1st 2006, implements theHydrocarbon Law of May 2005 and as a first step, increases royalties payable tothe State. Royalty and taxation levels on small fields, such as Monteagudo willbe fixed after an audit by the state oil company (YPFB). The appearance of military personnel on certain sites, as shown in recent mediaprogrammes, was to protect the facilities. Most have now withdrawn. Pan Andean personnel and management continue to work normally. The directors ofPan Andean remain committed to Bolivia. Bolivia has significant untappedreserves of natural gas and the directors believe that opportunities will emergefrom the current changes. Contacts: Pan Andean ResourcesJohn Teeling, Chairman - 00 353 1 833 2833 Rowan DartingtonIan Rice - 00 44 117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange