Operational Update: Colombia

11/5/2009, 10:06 AM (Source: GlobeNewswire)
Gold Oil plc
Operational Update: Colombia
Gold Oil plc ('Gold' or 'the Company') is pleased to announce the
following operational updates for its Azar, Nancy Burdine Maxine and
Rosa Blanca Blocks in Colombia.

Gold is pleased to announce that at the most recent Azar operating
committee meeting (OCM) on 28 October, the Operator, Gran Tierra
Energy Company (GTEC), announced the preliminary results of the 50km2
3D survey acquired on the southern part of the block on which the La
Vega South & East prospects will be drilled Q2/Q3 2010 as soon as the
relevant environment impact assessment permits are granted. La Vega
East has resources estimated by GTEC of 3.25MMbbl in the T and U
sands (Gold's share 0.6MMbbl). The similar La Vega South prospect is
estimated to have resources of 3.24MMbbl in both sands (Gold's share
0.6MMbbl). Both structures are very close together and are planned to
be drilled 'back to back' in 2010. GTEC has considerable experience
in the Putumayo Basin, of which these prospects are very typical,
operating several blocks.

During the same OCM the partners decided to acquire an additional
75km2 of 3D seismic over the La Florida structure, which is in the
northern part of the block and has had 51km of 2D seismic recently
acquired on it. The La Florida prospect has the potential, estimated
by GTEC, for 15-25 MMbbl of oil initially in place (STOIIP). A better
estimate will be made after the new 3D seismic survey, which will be
acquired in March/April 2010.

As announced in the Company's Operational Update announced on 24
September, the acquisition of a 60 km 2D seismic survey in the
southern portion of the Rosa Blanca Block, located in the prolific
Middle Magdalena Basin, started three weeks ago after the
environmental permit was granted. Local consultation, detailed
topography mapping and drilling of the shot-holes for the dynamite
charges are well advanced. The first seismic line has been shot and
according to the schedule the seismic acquisition will be finished by
mid November and processing and preliminary interpretation in the
first week of December.

Testing of the Burdine wells continues and B-1 has been in production
on a long term production test since October. B-1 is producing an
average of 230 bopd of light crude with 320 bpd of water. The
objective of the long term test is to get more information on the
well to optimize the work-over programme for B-1 and B-5. The
work-over of B-4 needs the approval of the Company's partners. B-5
has produced 60 bopd on a short term test and a work-over to
chemically remove probable formation damage and increase production
is being planned. Petrophysical analysis of B-4 shows unperforated
oil reservoirs that will be perforated during the work-over and
brought on stream.

The Company expects that the work-over programme for the Burdine
Field should increase production of the field to 1.500 bopd. (Net to
Gold 410 bopd)

Mark Pritchard, Chairman of Gold Oil said: "I am pleased with the
excellent news on the Azar Block and happy to have reached consensus
with our partners to develop the Block as quickly as possible,
bearing in mind that the environmental permitting for the two
projected wells is likely to take at least 6 month for approval,
once presented to the Ministry. It would be of interest to all
partners to be able to drill these two wells immediately after
prospect mapping has identified drilling locations but unfortunately
EIA permitting will not allow this."

The technical information contained in this announcement has been
reviewed and approved by Mike Burchell, B.Sc., 69, member of the SPE
and with over 47 years experience in the oil and gas business.

Notes for 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 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 was
drilled in November 2007 with a flow rate of 1,410 bopd. The
Guayoyaco Block is operated by Gran Tierra Energy (TSX: GTE), who is
also the operator and 40% interest holder in the Azar Block.

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 516.3km2).
The term of the Licence is for a period of 24 years and includes a
royalty payable to the ANH of between 8% and 25% depending upon the
level of production. The oil and gas terms in Colombia are currently
some of the most favourable in Latin America.

The Rosa Blanca Block covers an area of approximately 45,000 hectares
and is surrounded by the nearby oil producing fields of Cristalina,
Santa Lucia, Tisquirania, Totumal, Baturama and the South Bolivar
Block.

The petroleum system within the Rosa Blanca Block has been proven in
nearby oil wells and fields which reduces the geological risk
significantly. Gold believes that the presence of fractured reservoir
zones within the reservoir rock is the main geological risk. Gold's
clear objective is to find another Buturama style oil field which,
by analogy, could give reserves of up to 30 MM STB and initial
production rates of 1,200 BOPD of 35o API gravity oil per well.

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%.

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

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