Colombia Update

RNS Number : 1109L

Gold Oil PLC

30 August 2012

 

30th August 2012                                                              GOLD OIL PLC

("Gold Oil" or the "Company")

Colombia Update

Gold Oil, the AIM-listed oil and gas exploration and production company, (AIM: GOO), with a primary focus on opportunities in Latin America, wishes to announce the following update regarding its operations in Colombia:

Azar Block

The La Vega East 1 exploration well reached target total measured depth of 11,384 feet. Oil and gas shows were encountered in the samples of Villeta Formation whilst drilling.  Log analysis, sample evaluation and pressure information indicated potential for hydrocarbons in this formation in two zones; namely in the T sandstone and in the upper most Kg sandstone. The T sand was completed first; little fluid was produced and no oil recovered. Approximately seven feet of oil column in the Kg-Sandstone was identified as oil bearing. The Kg sandstone was perforated over a four feet interval, the well was swabbed and a pressure build up test was done. A fluid sample containing 4 barrels of 9° API oil was recovered.

The results indicated that the well productivity was poor and considered uneconomic. The decision has been made to plug and abandon the well.

Nancy-Burdine Block

The Supreme High Court has ratified the sentence of the local judge that ordered the Company to undertake a consultation with certain indigenous communities who are not in the direct area of influence of the fields and to suspend production operations temporarily until the consultation is completed. The consultation process with the relevant communities is now progressing and it is expected to be completed within the next two months. 

The Company is presently analysing the situation and will report within ten days how to move forward.

For further information on the Company, visit www.goldoilplc.com or contact:

Gold Oil Plc

Rudolph Berends , Director                                                                              Tel: c/o Seymour Pierce                                                                   

Seymour Pierce Ltd (Nomad and Joint Broker):

Jonathan Wright / Stewart Dickson (Corporate Finance)                           Tel:  [phone]

Richard Redmayne / David Banks (Corporate Broking) 

FirstEnergy Capital LLP (Joint Broker):                                                                                                                 

Hugh Sanderson / Travis Inlow                                                                       Tel: + 44 (0) 20 7448 0200

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed by Exploration Manager Ian Reid, a geologist with 29 years experience who has a degree in Geology from the Royal School of Mines, Imperial College, London.

 

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