Pan Andean Resources has announced that shareholders have subscribed for 3.28 million shares at 22p sterling per share, compared with the market price of 41p sterling, under the recent open offer. This represented a 75 per cent take-up.

The remaining 1.09 million shares have been placed with other investors.

Pan Andean has also announced it is to start drilling for oil on the Chapare block in Bolivia before the end of the first quarter.

Once drilling starts, the targets should be reached between 45 and 50 days, the company said in an interim statement.

The targets are the Petaca and Yantata sands already discovered in the Todos Santor well.

"Oil seeps in the well area indicate that hydrocarbons have been present," according to the statement. "Now we need good horizontal and vertical seals."

The recent placing and open offer raised more than $6 million (€5.8 million) compared with an initial target of $3 million.

Chairman Dr John Teeling said the company now had the ability to drill an additional well in 2000.

The latest results show no turnover in the six months to September 30th, 1999, reflecting the group's exploration stage. The loss before tax rose from £46,000 to £71,000.