Operations Update

8/6/2009, 9:49 AM (Source: GlobeNewswire)
6th August
2009
Gold Oil plc

GOLD OIL PLC

Operational and Reserves & Resources Update Colombia & Peru


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

Nancy Burdine Maxine Fields Colombia:

In early July the work over programme of three wells, Burdine 1, 4 &
5, was initiated. The first step was to open each of the three wells
and check their mechanical status. This phase was completed in the
last week of July and the Company is pleased to report that despite
some difficulties encountered with having to recover an old pump from
the Burdine 5 well, all three wells were found to be in good
mechanical condition. Consequently all three wells are ready to be
production tested. Burdine 1 was the first well to be tested and a
mobile pumping unit was brought onto site. After five days of
production testing, the Burdine-1 well flowed at an average rate of
220 barrels per day (bopd) of light, 25.6o API crude oil from N and U
sands. Bottom hole pressure at different lifting regimens and rates
are being measured and selective testing for each sand will be
carried out. Over the next two weeks the Company will test Burdine 4
and 5 with similar testing regimes and it is hopeful of analogous
production results on these wells.

Once the production tests are concluded the Company hopes that all
three wells can be put on long term production. The Company has
already formulated a fast track production scheme to bring the wells
on stream via the existing Nancy facilities. This involves the
expansion of production facilities at the Nancy field, which is less
than 2 kms away from the Burdine wells, to handle the anticipated
additional production.

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, the Company
farmed into the licence through Union Temporal. Since then the
Company has bought out one of the partners (Invepetrol). The
partners in this block are Ecopetrol (41%) and Union Temporal (59%).
Union Temporal is formed by 5 companies: Gold Oil (58.05%),
Termotécnica (18.05%), Ingeniería y Servicios Petroleros Ltda.
(18.05%), Bioss (2.84%) and one individual with (3%). The Company's
net working interest is 27.4%

The Nancy-1 well was re-entered in 2006 and production from the well
re-commenced and peaked at a rate of 699 bopd in November 2006 and
has since declined to about 250 bopd.


STATEMENT OF NET OIL RESERVES & CONTINGENT RESOURCES AS DETERMINED
ON 1ST JULY 2009
Set out below are extracts from a report dated 22 July 2009 prepared
by Morning Star Consultants LLC, giving an estimate of reserves and
resources attributable to Gold.

Nancy-Burdine Fields: Republic of Colombia

+-------------------------------------------------------------------+
| 1. Oil Reserves (Gold | As of | As of |
| Oil's | 1 October 2008 | 1 July 2009 |
| Interest) | Oil Thousand bbl | Oil Thousand bbl |
| | | |
|-----------------------------+------------------+------------------|
| Proved Developed Producing | 44.6 | 29.6 |
|-----------------------------+------------------+------------------|
| Probable Undeveloped | | 1,287.2 |
|-----------------------------+------------------+------------------|
| Proved plus Probable | 44.6 | 1,316.8 |
|-----------------------------+------------------+------------------|
| Possible Developed | 1,114.5 | 981.8 |
| Non-Producing | | |
|-----------------------------+------------------+------------------|
| Possible Undeveloped | 1,114.5 | 1,020.7 |
|-----------------------------+------------------+------------------|
| Total Proved plus Probable | 2,273.6 | 3,319.3 |
| plus Possible | | |
|-----------------------------+------------------+------------------|
| 2. Oil Resources | | |
|-----------------------------+------------------+------------------|
| Contingent Undeveloped | 6,250.1 | 5,747.8 |
|-----------------------------+------------------+------------------|
| Prospective Undeveloped | 3,201.3 | 3,201.3 |
+-------------------------------------------------------------------+


Notes:
1. The Reserve estimates shown in this report are based upon
the joint reserves and resource definitions of the Society of
Petroleum Engineers
2. Reserves and Resources estimates have been prepared by
Morning Star Consultants, LCC of Houston, Texas, USA
3. Net volumes have been calculated based on Gold Oil's 58.05%
Participating Interest, which after royalty amounts to 27.4%

Block Z34 & Block XXI Peru:

On 22 May 2009 the Company announced that SCAN Geophysical SA had
completed the acquisition of 2,013kms on Block Z34, offshore northern
Peru. Despite some delays in getting the information, the Company is
pleased to report that Gold has now started the reprocessing and
initial interpretation of the acquired data. The amount of data that
the Company has received is substantial and the work is taking longer
than originally anticipated. The initial work of geological &
geophysical petroleum interpretation team has been focussed on the
near shore area and they have already identified four potential
geological structures very similar to the petroleum traps that
contain proven and developed reserves of more then 300MMbbl (already
produced and still producing) in the adjacent Block Z2B operated by
PetroTech Peruana. Those leads are located within the band of 200-500
meters of water depth, and therefore should be relatively easy to
develop.

The processing and interpretation team are now working on the area of
deeper water (with water depths in excess of 2,000 meters) that cover
more than 60% of the Z34 area and where large turbidite structures
may be present. Results for this area should be ready in the fourth
quarter of this year.

In May 2009 the Company announced that it had entered into a
non-exclusive letter of intent with a Peruvian company concerning a
potential farm in on blocks Z34 and XXI. The Company has been in
extensive negotiation with this group but has been unable to reach
any final agreement and the letter of intent has now lapsed.
However, the Company is in discussions with other companies
concerning similar deals to farm in to both our onshore and offshore
Peruvian assets.

The Chairman of Gold Oil, Mark Pritchard said that "I am pleased to
report the increased reserves and production in the Nancy-Burdine
wells that should show a significant increase in our cash flow from
now on. The first results from the partial interpretation of the 2D
seismic on Block Z34 are potentially very exciting and should lead to
a major upgrade of the potential of this block."

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

Gold Oil
Mark Pritchard, Chairman Tel:
0208 332 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.
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