Gold Oil PLC
02 October 2006
For Immediate Release 2nd October 2006
Gold Oil plc ('Gold') update on the testing of their Peruvian exploration well
San Alberto-1X and Colombian Operations.
San Alberto-1X was selected following extensive regional geological and
geophysical studies that tied in Block XXI to other Palaeozoic and Tertiary
wells and fields. The well was spudded on 11th July 2006 and reached total depth
of 5, 113 feet on the 3rd August 2006, meeting the geological objectives in the
drilling programme.
The objectives of the well were the Tertiary Verdun sands that produce gas in
Olympic's Las Casita gas field 20 kms to the west of San Alberto-1 and the
fractured Palaeozoic quartzites that produce oil in PetroTech's offshore San
Pedro field 50 kms to the west. Logging, drilling results and regional
information showed 250 gross feet of hydrocarbon bearing sands in the Palaeozoic
and 315 gross feet of hydrocarbon bearing sands in the Verdun. The decision was
taken to production test these hydrocarbon bearing sands in both the Verdun and
the Palaeozoic.
After circulating to completion fluid and running a slotted-liner over the
Palaeozoic the drilling rig was moved off location. After clearing the location
a work-over hoist and test facilities moved on to the location on 22nd August
and produced formation water at 960 barrels per day from the base of the
Palaeozoic, below the hydrocarbon bearing interval. A heavier rig will move back
onto location in mid to late October to pull the slotted liner and run and
cement a new liner over the Palaeozoic which will isolate the water and allow
the hydrocarbon bearing intervals to be perforated and tested.
In Colombia approval was finally obtained from the Ministry to start production
but after only a few hours pumping out workover fluid from the well the
hydraulic power pump that drives the downhole jet pump suffered a mechanical
failure. A replacement pump was installed by the vendor and the well began
production, and then the surface pump failed again and was replaced by the
vendor. In the meantime the well flowed at rates of between 467 and 738 bbls per
day for a period of 12 hours before the surface pump failed again. The initial
flow contained 60% oil, 30% completion fluid from cleaning up the well and 10%
emulsion.
The surface pump was replaced again and production recommenced. As of Friday the
well was producing between 830 and 683 bbls per day of 26.8o API gravity oil and
24% completion fluid. First deliveries from the storage tank are planned to be
made over the weekend and the well is expected to stabilise once the last of the
completion fluid is produced.
The Company has also submitted an application to the Hydrocarbon Authority (ANH)
for an exploration Licence for an area in north eastern Colombia that we
identified some months ago.
The technical information contained in this announcement has been reviewed and
approved by Mike Burchell, B.Sc., 66, member of the SPE and with over 44 years
experience in the oil and gas business.
Enquiries:
Gary Moore Managing Director Tel: +44 (0)1737833597
Email: gmoore@goldoilplc.com
Mike Burchell Chairman Tel. +44 (0) 1372361772
Email: mikeburchell@hotmail.com
Roland Cornish Beaumont Cornish Limited Tel: 020 7628 3396
This information is provided by RNS
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