Pan Andean, the AIM-listed exploration company, has stated that it expects to drill the Chapiriri prospect, e oil concession in Bolivia, within four months at a cost of $5 million ($4.7 million). Pan Andean will be investing up to $1.5 million in the drilling consortium which comprises five companies.

The well will be drilled to a target depth of 3,500 metres over 30 days. "Pan Andean will have the right to buy out the participants at an agreed multiple so, if the well is successful, Pan Andean can own 100 per cent of the block," the company stated. Losses for the year to March 31st were down from £388,000 sterling to £83,000 sterling, the chairman, Mr John Teeling, said.