THE chairman of embattled exploration group Pan Andean assumed the role of company plumber when addressing perplexed shareholders at the annual general meeting in London this week. Dr John Teeling had the unenviable task of diagnosing and explaining the leaks and seepage of both information and oil deposits, which produced the collapse in the share price. At 135p a month ago, the shares are now at a lowly 40.5p due to an inspired information leak in Bolivia that the Chapare block, in which Pan Andean is a minority 20 per cent partner with Australian group BHP, did not contain oil or gas in commercial quantities.

Dr Teeling walked a difficult tightrope, veering between optimism and pragmatism; anxious to top up shareholders' low spirits while simultaneously stressing the stark realities of investment in a what is a volatile and high risk sector. "We are in a speculative business," he told the edgy meeting. Still, he remains confident that Pan Andean represents a "good speculative investment opportunity". A shareholder quizzically asked if BHP would follow the migrating oil. "I don't know," the chairman admitted. The expectation is that BHP will sink two more wells on the prospect next year,

While Pan Andean expects to meet its immediate funding liabilities if additional funds are required, the group, like the migrating oil deposits, will bypass hard pressed shareholders and opt for a private placing. The crippled shares could he seen as a bargain basement buy for the adventurous. For existing shareholders, sitting on major losses, a test of nerve lies ahead.its going to be a long, hard winter.