Operations Update

6/9/2009, 10:39 AM (Source: GlobeNewswire)
9th June 2009
Gold Oil plc

Operational Update Colombia & Peru

Gold Oil plc ("Gold" or "the Company") is pleased to announce an
operational update for its business units in Colombia and Peru:

Azar Block Colombia:

All permits for the 42 km of 2D Seismic and the 53 sq. km of 3D
Seismic survey have finally been granted and the operator of the
block (Gran Tierra Energy) is expected to start the acquisition of
the 3D in mid-June.

Gold has a 20% interest in the Azar Block, which is located to the
northeast of the Company's existing Nancy, Burdine and Maxine oil
fields and immediately to the east of the Guayoyaco Block in which
the Juanambu discovery well tested at a flow rate of 1,410 bopd. The
Guayoyaco Block is also operated by Gran Tierra Energy.

The licence for the Azar Block was granted by Colombia's hydrocarbons
agency ANH in October 2006 for an area of 51,630 Ha (or 516.3sq.km).
The term of the licence is for a period of 24 years and includes a
royalty payable to ANH of between 8% and 25%, depending upon levels
of production. The oil and gas terms in Colombia are
currently some of the most favourable in Latin America.

Nancy Burdine Maxine Block Colombia:

On 1 June 2009, the Company took over the operation of the Nancy
Burdine Maxine field. The Company has now started the long expected
process of increasing production from these fields. A slick-line unit
was moved into the area of operations and the down-hole completions
of Burdine 1, 4 & 5 were checked and found to be in satisfactory
condition which will allow the reactivation of the wells.

In July, the Company expects to start a 5 day production test on each
of the Burdine wells as the first step towards deciding which of the
Burdine wells will be worked over and put on long term production.

The total estimated remaining P1 (Proved) reserves in Nancy-1 as of
July 2008 were 184,306 barrels of oil.

It is estimated that, without stimulation, 2009 total production will
reach 82,706 barrels and gross revenues will reach US$3.3million,
US$0.8 million net to Gold (based on an average price of

Rosa Blanca Block Colombia:

The Rosa Blanca operating group, in which Gold Oil has a 40% stake,
is now well into the process of defining the second phase exploration
program which is a 60 km 2D seismic acquisition over the previously
indentified prospects of the 45,000ha concession.

Block Z34 & Block XXI Peru:

PeruPetro has granted the Company a 6 month extension which gives the
Company enough time to process and interpret the recently acquired
2,013kms 2D seismic.

The Company has started the extension of its EIA studies for the 3D
survey in block Z34 which is the commitment for phase 2 of the
exploration contract and for the 2D seismic programme which is
planned for phase 3 of the exploration contract on Block XXI.

Mark Pritchard, Chairman of Gold Oil said, "It is very encouraging to
be able report considerable progress across all of the Company's

For further information on the Company, visit www.goldoilplc.com or

Gold Oil
Mark Pritchard, Chairman Tel: 020
8332 6882

Seymour Pierce
Jonathan Wright / Richard Redmayne Tel: 020 7107 8000

Notes to Editors

Gold Oil is an AIM-listed oil and gas exploration and production
Company primarily focused on opportunities in Latin America. It has
oil production in Colombia and significant exploration acreage and
licences both onshore and offshore in Peru and onshore Colombia.

The Nancy, Burdine and Maxine fields were discovered by Texaco and
put on stream in 1976. The Nancy-1 well produced initially 1,400
bopd, the well production then declined to approximately 200 bopd by
1995 when the well was abandoned. The fields were returned to
Ecopetrol who licensed them to a group of local oil and services
companies ("the Union Temporal") in 2003. On March 2006, Gold farmed
into the licence through Union Temporal. The partners in this block
are Ecopetrol (41%) and Union Temporal (59%). Union Temporal is
formed by 5 companies: Gold (58.05%), Termotécnica (18.05%),
Ingeniería y Servicios Petroleros Ltda. (18.05%), Bioss (2.84%) and
Víctor Hugo Franco (3%).
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.