Business
Z34 50% acquisition and operational update
Z34 50% acquisition and operational update.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \n\n\n\n PRESS RELEASE\n For immediate release: 13 October 2008\n\n Gold Oil plc (\"Gold\", or \"The Company\")\n\n Gold acquires remaining 50% interest in exploration contract Z34,\n offshore Peru\n\nGold is pleased to announce that it's wholly owned subsidiary, Gold\nOil Caribbean Limited, has entered into a Sale and Purchase Agreement\nwith Capricorn Oil and Gas Limited for the acquisition of all of the\nissued shares in Plectrum Petroleum Limited (\"Plectrum\").\n\nPlectrum is a UK registered company that has a Peruvian branch which\nholds a 50% working interest in the Z34 offshore exploration and\nexploitation contract in Peru. Gold had a \"carry\" from Plectrum,\nwhereby all Gold's costs would be paid for by Plectrum through the\nfirst phase work programme under the licence for up to 2,550 km of 2D\nseismic plus processing.\n\nUnder the terms of the agreement, Gold will receive USD $1,500,000 in\ncompensation for the\nloss of the benefit of the \"carry\" and additional 50% interest in the\nlicence.\n\nThis transaction brings Gold's working interest in the Z34 block to\n100%.\n\nPeruPetro approved the 30 year oil and 40 year gas contract on 6\nDecember 2006 and the Minister of Energy and Mines signed the\ncontract in February 2007. The terms of the licence are very\nattractive with a royalty rate of 5% rising to a maximum of 20%, if\nand when production reaches 100,000 bopd.\n\nThe Environmental Impact Assessment for the block was obtained in\nSeptember 2008 and Gold is now actively preparing for the 2D seismic\nsurvey for later this year.\n\nGary Moore, Gold's CEO, said: \"We are delighted to have secured this\ninterest, particularly given the recent gas discovery to the south\nand Shell's $300 million farm-in to the north of the block.\"\n\nOperational Update\n\nThe Company has now employed a new Country Manager for Colombia whose\nmain responsibility is initially to drive the Nancy Burdine\ndevelopment when we assume operatorship of the fields in November of\nthis year.\n\nThe Company expects that the exploration well on the Rosa Blanca\nfield in Colombia will spud in early December 2008. Whilst the\nCompany recently received an initial offer from an undisclosed party,\nthis offer was subject to 90 days due diligence. The board felt that\nthis offer was not in the best interests of shareholders as it did\nnot recognis...