Operations Update

RNS Number : 9643O

Gold Oil PLC

27 September 2011

 



27 September 2011

GOLD OIL PLC

("Gold Oil" or the "Company")

Operations Update

Gold Oil, the AIM-listed oil and gas exploration and production company with a primary focus on opportunities in Latin America, is pleased to provide the following operational update on its operations in Peru and Colombia.

PERU

Block Z34

The marine 3D seismic survey over Block Z34 southern and northern areas has now been completed and the "BGP Pioneer" returned to port and demobilised.  The survey was completed within budget with minimal downtime and zero lost time accidents.  A contract for the data processing has been awarded to CGGVeritas and it is anticipated that initial fast track results should be available in nine weeks and full results in twelve to fourteen weeks.  Interpretation will commence in house once the processed data is received with a view to begin discussions with potential farm-in candidates towards the end of the fourth quarter.

Block XXI

The process of assigning 70% of the equity in Block XXI to Vale Oil & Gas ("Vale") is proceeding and Vale has now been approved as an exploration and production operator in Peru.  The next step requires the formal approval of the PeruPetro Board and is expected during the fourth quarter, which will result in a US$2 million payment from Vale to Gold Oil as agreed in the farm-out agreement.   

COLOMBIA

Nancy Burdine Maxine fields

The workover programme on the Burdine wells (Burdine 1 and Burdine 5) has been completed with the rig released towards the end of April.  The work was completed within budget despite some operational issues associated with the poor condition of the completion equipment in the Burdine 1 well.  Burdine 1 has produced at a good steady rate from the 'N' sand.  Testing of the 'U' sand has been delayed due to the lack of suitable equipment in the Putumayo area and is expected to commence within the next month.   Following testing, the Burdine 5 well produced initially at good rates but water cut has increased significantly recently.  The well has stabilised at a higher water cut rate and the company is studying options to reduce water influx and increase oil productivity.  

Following the workover programme, gross production from the field has doubled and is now between 600 and 650 bopd.

Gold Oil and its partners in the fields have agreed to commence final negotiations with the owner of the leased equipment currently on site with a view to purchasing the facilities for permanent use, which if completed, will result in operational cost savings on the fields.

Azar Block

Gold Oil has been informed by the operator of the block, Gran Tierra, that they are getting the La Vega East well permits in place and expect the well to be drilled in the fourth quarter of this year.  

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

Gold Oil Plc

Richard Mew - CEO                                                                                            Tel: [phone]

Seymour Pierce Ltd (Nomad and Joint Broker):

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

Richard Redmayne / Jeremy Stephenson (Corporate Broking) 

FirstEnergy Capital LLP (Joint Broker):                                                                                                                 

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

 

END

 

 

MSCEAXNKAAKFEFF