Pan Andean Resources plc has written off more than £5 million (€6.35 million) in connection with its investment in the Chapare concession in Bolivia. The company chairman, Mr John Teeling, said the large exploration block had potential but was too costly to maintain and explore.

"We have better opportunities in Bolivia and the US for our time and our money," he said in a statement accompanying the company's results for the year to March 31st.

Pan Andean is preparing submissions for one and possibly two large exploration blocks. It is hopeful drilling will lead to the discovery of significant gas deposits.