Directorate Change

18 Aug 2006 11:43

Pan Andean Resources PLC18 August 2006 Pan Andean is an oil and gas producer and explorer in South America and the Gulf of Mexico Pan Andean Resources plc Directorate Change and Operational Update Highlights: > OPEC Principal Oil Supply Analyst Ivan Sandrea joins the board> Work commences on Peruvian Operations> Potentially positive political movement in Bolivia> Preliminary assessment of Iranian exploration target The directors of Pan Andean Resources (AIM:PRE) are delighted to welcome IvanSandrea to the board of directors. Ivan is the Principal Oil Supply Analyst atthe Organisation of Petroleum Exporting Countries (OPEC). He was formerlyAssociate Vice President of Oil & Gas at Merrill Lynch in London. Anexploration geologist and Venezuelan national, Ivan Sandrea has also worked withBP Exploration International in Egypt, Norway and Venezuela. Pan Andean Begins Work in Peru Following the signing of the Contract for Lot 114, covering 770,000 hectares inthe Central Ucayali Jungle, Pan Andean immediately began to work towards thegoal of early discovery of economic reserves of oil. Towards this end, we have obtained from the Peruvian state oil companyPerupetro, the digital tapes including approximately 2,000 kilometers of seismicdata. Where appropriate, these data will be reprocessed and re-interpreted. Workrequired to confirm the geographic coordinates of the original seismic lineswill be completed by end November. Together with our technical partners, Compania Consultora de Petroleo, we havebegun the evaluation work required to identify the best drill locations. Simultaneously, Community Relations efforts are underway. In accordance withPeruvian law, we are already preparing for the required Community Workshops.Workshops will be held during the month of October at the towns of Masisea andIparia, with over 200 community leaders from throughout the area expected. Ateach presentation, Pan Andean and Perupetro, on behalf of the PeruvianGovernment, will outline its plans and general work program for Lot 114. We are finalising terms of reference for the Environmental Impact Study. Thescope of study will cover the first four well locations, any required seismicwork, the access road and regional work covering the entire Lot 114. The studywill begin in October and should be completed by January 2007. Field Geological Work will commence when the environmental permits are in place,probably after the rainy season ends in 2nd quarter 2007. Bolivian update The board has noted that the Bolivian authorities have postponed the mootednationalization of the oil & gas sector, reportedly due to lack of resourcesincluding compensation funds. Iranian update Progress is being made toward Pan Andean's goal of entering the Iranian oil andgas sector. The Company is at a preliminary stage in assessing a potentialexploration project. DAVID HORGAN, Pan Andean's Managing Director, commented: 'The addition of Ivan Sandrea to the board is a significant development for PanAndean, boosting our hydrocarbon technical and financial experience. As aVenezuelan national, as well as a technically and financially expert oil and gasexecutive, Ivan brings unique insight into how best to work with the newpopularly elected governments in Latin America. We are watching developments in Bolivia as they unfold. Despite politicalturbulence, Bolivia has over 50 trillion cubic feet of gas reserves and some ofthe world's most prospective gas acreage. Pan Andean takes a positive attitudeto the electoral outcome and is determined to work with local people andauthorities. We will be part of the solution, rather than part of the problem. In Peru we will drive forward our exploration projects as fast as possiblewhilst we will continue to press our case with the Iranian oil authorities.' For further information please contacts: David Horgan, Managing Director + 353 1 8332833 College HillPaddy Blewer +44 (0) 20 7457 2020 Corporate Synergy PlcIan Rice +44 (0) 117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange