Pan Andean Makes Headway at Peruvian Ucayali Blocks

Block 131

Pan Andean announced that its partner and operator on Peruvian Blocks 131 and 114 in the Ucayali area, Spanish major CEPSA, having completed Exploration Period 1, has made a decision to enter into Exploration Period 2. This 18 month period begins in July 2009, and requires 300 work units or the acquisition, processing and interpreting of 300 kilometers of 2D seismic. The Peruvian authorities have been notified.

Block 114

The previously announced decision by CEPSA to acquire 200 kilometers of 2D seismic is now being implemented. Canadian contractor SAE is now mobilizing in the Tamaya area in the north-east of Peruvian Block 114.

Nine seismic lines will be acquired with 2,660 shot points, 75 meters apart with 7,980 receiving stations every 25 meters and a capacity of 2,200 channels. A base camp will be constructed and logistics will be conducted by river boats and three Bell Helicopters, with 39 heliports and fly camps. About 330 people work on the project: 210 Peruvian and international engineers and technicians working closely with 120 local people who will benefit from training as well as employment.

They expect the seismic acquisition to be completed within two months. Following acquisition, the seismic data will be processed and interpreted, with the objective of selecting drill targets.

Pan Andean Interest

Pan Andean holds a 30 percent interest in both blocks and is fully carried in all expenditure through the first well and for 50 percent of a second well.

David Horgan, Managing Director of Pan Andean Resources, commented, "This is excellent progress by CEPSA on both our joint blocks. The potential of Block 114 is recognized by the speedy decision of CEPSA to move quickly to acquire detailed seismic on a small area of the block.

"We are delighted that the CEPSA review of data on Block 131 supports the view of Pan Andean that the Block has high potential."