FOR IMMEDIATE
RELEASE
8 July 2008
GOLD OIL plc ("Gold" or "the Company")
ACQUISITION AND
OPERATIONAL UPDATE
Acquisition
The Company is pleased to announce that, through its 100% owned
subsidiary Gold Oil Caribbean Limited, it has entered into an Option
Agreement for $1 to purchase ninety five percent (plus five percent
in the name of Gold Oil subsidiaries and the parent, held in trust
for Gold Oil Caribbean Limited) of all of the issued shares in
Inversiones Petroleras de Colombia S.A. ("Invepetrol") for a
consideration of $4 million.
Invepetrol owns an 18.05% participating interest in the Union
Temporal II & B that is the Operator and Licence holder of the Nancy,
Burdine and Maxine oil fields in the Putumayo Basin in Southern
Colombia. The Company already owns a 40% interest in Union Temporal
and this will takes the Company's total interest to 58.05% (27.29% of
net production.)
The Option Agreement allows thirty days for due diligence on
Invepetrol and gives the Company the right to enter into a Sale and
Purchase Agreement for the purchase of the shares with an initial
payment of $1 million and the balance at a later date.
For the year ended 31 December 2007, the profits before taxation and
gross assets as shown in the unaudited joint venture accounts
attributable to the additional interest in Union Temporal being
acquired are £79,000 and £510,000 respectively (based upon a
conversion rate of £1=3,635 Columbian pesos). There is no valuation
of the assets which are being evaluated by the reserve report on
Nancy 1 well referred to below.
The Nancy 1 well was re-entered in late 2006 with an initial
production of 700 bopd, which has now declined to an average monthly
rate of 383 bopd. The 2008 work programme has been delayed over
environmental approval and includes five re-entries on the existing
Burdine wells and, if encouraging, workovers of the five wells. Some
additional infill seismic on both the Nancy and Burdine fields is
planned if justified by a full field reserves report that is
currently under preparation following a full field geological report
to establish the reserves held by the Company.
Operational Update
Rosa Blanca, Onshore Colombia (Gold's interest 36.8% Net Revenue
Interest - NRI)
The Rosa Blanca licence with the ANH was recently extended from July
3, 2008 until December 25, 2008 to allow for additional time to
complete the first phase work programme. The whole work progamme has
been delayed due to delays in the Environmental Approval for the
area, which is becoming more and more common in Colombia with the
ever increasing work load on the Environmental Agency. It is now
envisaged that the first exploration well will be sometime later than
September this year.
Block XXI, Onshore Peru (Gold's interest 95% NRI)
The well site and drilling pad is now mostly complete and all the
equipment on site with the rig due to leave its last job on Monday
the 7th July. It is expected to arrive at the site by the 11th of
July. We have the rig after Inveroil which had a one to two well
programme. As Inveroil had a successful first well flowing at between
600 and 800 bopd, they have opted to drill the second well
immediately.
Z34, Offshore Peru (Gold's interest 47.5% NRI)
Progress on the seismic tender is unlikely until a clear date for the
Environmental Approval is obtained. Interest in the area has
increased again with PetroTech announcing a gas discovery immediately
to the South of Z34 and Shell farming into BPZ's block to the North
of Z34.
Azar, Onshore Columbia (Gold's interest 18.4% NRI)
The previously reported delays have now been overcome and the
operator expects to commence perforation of the target zones shortly.
The Company CEO, Gary Moore said "we entered into this Option
Agreement as we saw an opportunity to acquire some additional low
cost producing reserves in a field we are familiar with as well as
giving us greater control of the field and thus allowing us to push
development of the fields at a faster rate."
The technical information contained in this announcement has been
reviewed and approved by Mike Burchell, B.Sc., member of the SPE and
with over 45 years experience in the oil and gas industry.
For further information, please contact:
GOLD OIL plc
Michael Burchell, Director
Tel: +44 (0) 1372 361 772
Beaumont Cornish Limited
Roland Cornish
Tel: +44 (0) 20 7628 3396
Blue Oar Securities
Jerry Keen
Tel: +44 (0) 20 7448 4492
Conduit PR
Jonathan Charles/Ed Portman
Tel: +44 (0) 20 7429 6611
---END OF MESSAGE---
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.