Share prices in the AIM-listed exploration group Pan Andean Resources have collapsed for the second time in the space of a few days after the group revealed that its Chipiriri exploration well in Bolivia had failed to find commercial amounts of oil. In heavy trading, Pan Andean fell almost 47 per cent to 14 1/2p sterling.

On Monday, Pan Andean disclosed that the Chipiriri well had failed to find gas and this led to a 31 per cent in the share price from 44 1/4p sterling to 30 3/4p. At the time the company, Pan Andean managing director David Horgan played down the absence of gas and emphasised the possible presence of oil in a different section of the Chipiriri structure.

In what seems to be something of an understatement, Pan Andean said: "Geologically, Chipiriri is something of an enigma, a reference to the belief that oil did exist in the structure but has migrated elsewhere

Now, just four days later the company has reported that not only does the Chipiriri well not contain gas, it doesn't contain oil either and as a result has been plugged.