MOU Extension & Acquisition

Gold Oil PLC
07 October 2005


FOR IMMEDIATE RELEASE 7 October 2005


 GOLD OIL ACQUIRES OPERATORSHIP AND INTEREST IN OIL AND GAS PRODUCING FIELD AND
                      EXTENDS ITS MOU WITH MAN FERROSTAAL

Gold Oil Plc ('Gold' or 'the Company') is pleased to announce that it has
purchased an onshore oil production company based in northern Spain. This is the
first production in Gold's history and will provide its initial source of income
from oil and gas activities. It most importantly provides Gold with 'operator'
status now essential for the Company to pursue its main exploration
opportunities in Peru. Gold has also signed an extension to its Memorandum of
Understanding ('MOU') with MAN Ferrostaal of Essen, Germany for the evaluation
and feasibility study for a petrochemical plant to be constructed in Northern
Peru.

Gold has signed the agreement with Northern Petroleum Plc for 100% of the issued
share capital of Northern Petroleum Exploration Limited ('NPE') (a wholly-owned
subsidiary of Northern Petroleum Plc) for a cash consideration of £300,000. The
agreement provides that the cash balance at completion is paid to the vendor in
settlement of the outstanding inter-company balance. NPE holds the operatorship
and a 22.5% share of the Ayoluengo oil field in the Sedano Basin about 280km
north of Madrid. The Oil from the field is highly priced, and is sold as crude
to be blended and burned by local industry, yielding a price above that of Brent
crude oil. However, the indexation formula means that although the benefit of
current high oil prices will be enjoyed by Gold this will be in future months as
the sale price lags behind the current oil price. Gross annual revenue for the
entire field in 2005 is estimated at US$1.6 million at the prevailing oil prices
with an unaudited net operating profit of US$446,000.

The purchase includes the oil processing facilities, tanks, offices and the land
on which they stand, together with substantial related equipment and stocks,
including a work-over rig. For the year ended 31 December 2004, NPE reported
turnover of £489,164, on gross loss of £3,212, operator fees of £42,000 and a
loss on ordinary activities before taxation of £111,154 and had as at that date
a net deficit of £212,295.

The Ayoluengo oil field is currently producing about 110 barrels of oil per day
from 11 wells with a further well producing sufficient quantities of gas to
generate the power required to run the operations. Approval has been received to
re-enter the wells to increase production by perforating several identified
zones previously undeveloped.

GOLD OIL EXTENDS ITS MOU WITH MAN FERROSTAAL
Gold Oil has signed an extension of 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.

Gary Moore, Managing Director of Gold Oil Plc, said 'It may seem strange for a
company focused on South America to purchase assets in Europe, but this has been
done for very good reasons.

The first and most important is 'Operatorship'. With such high oil prices the
state licencing authorities in many South American countries have recently began
raising the hurdle level for licences in their countries. Three years of
accounts plus current operatorship and oil production is now the norm, making it
impossible for new oil companies such as Gold Oil to acquire or retain licences.
We have tried endlessly to contract with existing operators in those countries
without giving away control and a considerable interest in our target areas but
this could not be achieved. We now have the ability to turn our promotion
agreements and areas of interest into Exploration and Exploitation Licences
without diluting our interest.

The second reason is that as I was a non-executive director with Northern
Petroleum Plc at the time Northern first purchased the Spanish assets, I am
familiar with the assets and do see upside if the costs can be kept down.
We are delighted to be able to sign an extension to the MAN Ferrostaal MOU,
where the feasibility study, the first stage of the petrochemical plant project,
has proved encouraging. Whilst $70/bbl oil and the price and gas resource size
in the area that Gold operates in Peru makes the project very attractive, it
also brings in more competition and impinges upon resources making progress
slower than we would have hoped for.'

Note:

Mike Burchell, B.Sc., 63, 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: [phone]
Email: [e-mail]
Mike Burchell Chairman; Tel: [phone]
Email: [e-mail]
Roland Cornish Beaumont Cornish Limited; Tel: [phone]







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