🕐21.10.08 - 21:11 Uhr

Stealth Energy video update



Directors: John J.

Teeling Chairman, David J.

Horgan Managing Director, Jim Finn, Ivan Sandrea
Registered in London under No.

2231725, Registered office: 20-22 Bedford Row, London WC1 R4JS.
Pan Andean Resources plc
Pan Andean is an oil and gas producer and explorer in South America
and the Gulf of Mexico
22nd October 2008
Highlights of Chairman"s Comments at the
Pan Andean Resources AGM
London, Wednesday 22nd October 2008
In these very turbulent times, it is a pleasure to present a company showing profits,
cash, cash flow and production.
• Pan Andean is one of the few AIM listed oil and gas producers / explorers with
production, profits and cash
• Our latest drilling, the deep wildcat Danbury Dome well, onshore Texas, is
making good progress to reaching the target depth of 13,500 feet.

The target is
gas in a substantial structure
• The highlights of the past year were undoubtedly the successful farm-outs of
our Peruvian blocks and the acquisition of the Antorcha block in Colombia
• CEPSA of Spain and Reliance Industries of India, two world class multinationals,
are now our partners on blocks 114 / 131 and 141 respectively in Peru.

Pan
Andean has a 30 per cent interest and a full carry through the first well in each
case and a 50 per cent carry in the second.

In addition, Pan Andean received $3
million in back costs.
• In recent weeks we have been awarded Block 161, in the Ucayali basin in Peru
• The Antorcha block in Colombia, 100 per cent Pan Andean, is located adjacent
to proven fields and infrastructure and is thought to be highly prospective.

The
recently completed 60km seismic programme has identified drillable structures
of significant size
• The targets are shallow, and subject to rig availability, drilling could begin in
early 2009
• There is interest from outside parties in participating in Antorcha
• Bolivia remains a no go area for investment but the potential of our El Dorado
gas discovery is recognised and development proposals are being examined
• The US remains the cash engine of Pan Andean, generating revenue mainly
from offshore oil production and from royalties both onshore and offshore
• Hurricane Ike caused limited damage to our platforms but onshore processing
facilities received water damage.

We estimate that we will lose approximately
two months revenue before production is back up and running
• Falling oil prices and a frozen stock market are already generating
opportunities.

Our profits, cash and projects are attractive to many junior oil
ventures.

We see a flow of prospects and projects.

We can afford to be
selective, looking to create the most value for our shareholders
• All resolutions were passed at the meeting
Contacts:
Pan Andean
David Horgan, Managing Director + 353 87 292 3500
John Teeling, Chairman + 353 1 833 2833
College Hill
Paddy Blewer +44 (0)20 7457 2020
Nick Elwes
Blue Oar Securities Plc
John Wakefield +44 (0)1179 330020
Simon Moynagh
www.panandeanresources.com




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