Gold Oil PLC
05 October 2006
For Immediate Release 5th October 2006
Gold Oil plc ('Gold or the Company') announces an update of their Peruvian and
Colombian Operations and Director's dealings
PERUVIAN OPERATIONS
The Company is pleased to announce that it has signed a contract with a local
Drilling Contractor (Petex) for the testing of the San Alberto 1X exploration
well on Block XXI, onshore Sechura Basin in North West Peru. Depending upon the
time it takes to complete its current assignment in the Peruvian jungle, the rig
should be rigged up and ready for operations by late October or early November.
All documentation necessary for the Company and Plectrum Plc (our partner) in
Z34 that are necessary to get board approval from Perupetro is now in place. It
is most likely that approval should be obtained before the end of October. The
next step in the process is the approval of the Ministry of Energy and Mines
which can take anything up to four months. We have expressed our concerns with
the authorities that any slippage with the approvals would have an adverse
impact on the plans to bring in a seismic vessel into Peruvian waters jointly
with other offshore operators in 2007.
COLOMBIAN OPERATIONS
The Nancy well has now stabilized further at a flow rate of 714 bbls per day
with a 4% BS&W (685 bopd). The BS&W is well completion fluid and should all be
removed by the weekend and an encouraging stable flow rate of 550 bopd is
expected once all the gas handling equipment has been completed and is
operational.
Although the operator has suffered many difficulties in completing the Nancy 1
workover in a difficult part of the country, the consortium is sufficiently
confident to commence a multi-well work over on the Bourdine 1, 4 and 5 wells.
At present the plan is to only perforate the previously perforated and produced
hydrocarbon zones (same as Nancy 1) before attempting to perforate virgin
hydrocarbon zones.
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.
DIRECTOR'S DEALINGS
The Board announces that Michael Norman Burchell, Director, today exercised
575,000 directors' warrants to subscribe for 575,000 ordinary shares at 1p per
share and John Gary Moore, Director, today exercised 2,300,000 directors'
warrants to subscribe for 2,300,000 ordinary shares, at 1p per share, ('the
Shares'). The Shares will rank pari passu with all existing shares in issue, and
application will be made for admission to trading on AIM.
Following the issue of the Shares, Mr. Burchell will own a total of 5,575,000
shares or 1.34% of the enlarged issued share capital, together with 1,825,000
directors' warrants and Mr. Moore will own a total of 21,150,000 shares or 5.08%
of the enlarged issued share capital, together with 6,900,000 directors'
warrants.
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
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