Gold Oil PLC
09 March 2006
FOR IMMEDIATE RELEASE 8th March 2006
GOLD OIL ACQUIRES A 40% WORKING INTEREST IN THE NANCY-BOURDINE-MAXINE OIL AND
GAS FIELDS IN COLOMBIA
Gold Oil Plc ('Gold') is pleased to announce that it has acquired a significant
interest in the Nancy-Bourdine-Maxine (NBM) Oil Fields in the South West of
Colombia. The fields were discovered by Texaco and put on production at 1,400
bopd in 1975 to 1995 when they were abandoned for economic reasons. At the time
of abandonment the Nancy 1 well was producing at 200 bopd with no water. The
Licence is held by Union Temporal that is made up of a group of small sized
local oil and service companies and individuals led by ex-oil personnel from
companies such as BP, Oxy and Schlumberger, all of whom have extensive
experience in Colombia and the NBM Oil Fields. The transaction, which is subject
to the approval of Ecopetrol, will make Gold the largest partner with a 40%
interest.
The current plan is to re-enter the Nancy 1 well and recommence production by
use of a jet pump from the existing zones and also to perforate zones previously
ignored. The workover rig is currently being contracted to commence operations
in the next few months.
The consideration is $330,000 with an increased share of production for Gold
until payback when a contribution to back costs is made. Gold has to pay its
share of the re-entry costs estimated at $220,000.
Gary Moore, Managing Director of Gold, said 'We have been looking at Colombia
for some time and we like the many oil and gas opportunities there. We decided
that NBM was an ideal low cost entry into a new country with an experienced and
very low cost operator where we have every possibility for early cash flow and
exploration upside'.
Enquiries
Gary Moore Managing Director; Tel: 01737833597
Email: gmoore@goldoilplc.com
Mike Burchell Chairman; Tel: 01372361772
Email: mikeburchell@hotmail.com
Roland Cornish Beaumont Cornish Limited; Tel: 020 7628 3396
NOTE TO EDITORS
The Colombian Acreage
The NBM area lies in the South West of Colombia in forested jungle some 100 km
from the Ecuador and Peruvian borders. The area is surrounded by many producing
oil fields and some access roads need to be repaired before the rig can locate
to the site. The target reservoirs are at depths mostly less than 10,000 feet.
Oil export infrastructure lies some 13 km to the west and initially the oil will
be trucked to the pipeline entry terminal. Depending on production levels, a
pipeline may be installed at a later date. In the past there have been some
isolated cases of terrorism, but many companies have been operating in the area
for years without any trouble.
This information is provided by RNS
The company news service from the London Stock Exchange