Gold Oil PLC
03 November 2006
FOR IMMEDIATE RELEASE 3rd November 2006
GOLD OIL EXTENDS ITS MOU WITH MAN FERROSTAAL AND COMMITS TO PHASE TWO OF THE
NANCY, BURDINE AND MAXINE FIELDS IN COLOMBIA
GOLD OIL EXTENDS ITS MOU WITH MAN FERROSTAAL
Gold Oil has signed a second extension of one year to its existing MOU with MAN
Ferrostaal of Essen, Germany to evaluate the feasibility of developing a
petrochemical plant in Northern Peru. Under the terms of the MOU, MAN Ferrostaal
is responsible for evaluating the petrochemical plant and Gold Oil is
responsible for evaluating the gas supplies and pipeline transportation options.
The MOU envisages several phases of development with Gold Oil having an option
to participate in the petrochemical plant and MAN Ferrostaal an option to
participate in the upstream gas supply.
COLOMBIA
The Company has, together with its partners in the Nancy, Burdine and Maxine
Licence, advised Ecopetrol, the state oil company in Colombia that they intend
to proceed with the second phase of the licence. A development work programme
and budget is being prepared now for the re-entry of the Burdine 1, 4 and 5
wells.
The first phase was the re-entry of the Nancy 1 well which is now producing at
between 245 and 835 bopd of oil. The average production over the first month to
date that included many shutdowns to tie in gas handling equipment was 485.6
bopd. With increased confidence in the Nancy well, much of the onsite rented
equipment (such as pumps and tanks) is now being replaced with purchased
equipment. The Company's working interest is 40%.
Note:
Mike Burchell, B.Sc., 66, has over 40 years experience in the oil and gas
business. He has read and approved the technical disclosure in this regulatory
announcement.
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 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 needed to be repaired before the rig could
reach the Nancy area. 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 is trucked to the pipeline entry terminal, operated by Ecopetrol.
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 with many
companies operating in the area for years without any trouble, more and more
companies are looking to enter the area.
This information is provided by RNS
The company news service from the London Stock Exchange