Peru Onshore Block XXI Update

31st January 2011
  GOLD OIL PLC

                     ("Gold Oil", "Gold" or the "Company")

                         Peru Onshore Block XXI Update

Gold  Oil,  the  AIM-listed  oil  and  gas  exploration  and  production company
primarily  focused on opportunities in Latin  America, is pleased to provide the
following update on its operations in Peru.

Block XXI

The Company is pleased to announce that it has signed a Farm Out Agreement and a
Joint  Operating  Agreement  with  Vale  S.A.  (Vale) for its onshore Block XXI,
located in the Sechura Basin in Northwest Peru.

Under  the agreements, which are subject to Perupetro approval, Vale will pay an
upfront  cash  consideration  of  US$2million  and  will  carry Gold through the
remaining  exploration programme capped at US$10million (gross total exploration
programme).  In return Vale  will receive a  70% interest in the  Block and will
become Operator after assignment.  Gold will retain 30% of the block.

In parallel the Company has requested Perupetro to unify the current exploration
phase  (Phase III) and Phase IV which,  if accepted by Perupetro, would increase
the minimum exploration commitment to the equivalent of 400km of 2D seismic or a
combination  of seismic and other exploration activities.  This would extend the
end date of the combined phases until November 2012.

Commenting  on the update, Chief Executive Officer  Richard Mew said, "I am very
pleased  to  announce  these  agreements  with  Vale concerning our Block XXI in
onshore  Peru.  We believe that Vale will bring considerable resources to assist
in the thorough evaluation of this block and we welcome them as our new partner.
 This  farm out deal with Vale is another important milestone for the Company as
we  seek to reduce our exposure to exploration risk whilst building on potential
opportunities for growth."

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

Gold Oil Plc
John Bell - Chairman
  Tel: [phone]
Richard Mew - CEO                               Tel: [phone]

Seymour Pierce Ltd
Jonathan Wright / Stewart Dickson (Corporate Finance)  Tel:  +44 (0)
20 7107 8000
Richard Redmayne / Jeremy Stephenson (Corporate Broking)


About Vale S.A.:

Vale is the second largest metals and mining company in the world, the world's
largest producer of iron ore and the world's second largest producer of nickel.
Vale also produces manganese, ferroalloys, thermal and coking coal, bauxite,
alumina, aluminum, copper, cobalt, platinum group metals and fertilizer
nutrients.

Vale started its activities in oil and natural gas exploration in 2007 and is
already one of the largest holders of stakes in exploration blocks in Brazil.
Vale's current portfolio consists of 22 blocks, grouped into 15 concessions
(five in the Santos basin, four in the Espírito Santo basin, four in Pará-
Maranhão basin, and two in the Parnaíba basin).

For more information, visit www.vale.com.





Block XXI further information:

Block XXI is located east of the producing San Pedro oil field and La Casita gas
field.   The  San  Pedro  oil  field  was  discovered  in  2006 and  immediately
highlighted  the  potential  of  the  Sechura  Basin and accelerated exploration
activity  there.  Gold  drilled  two  stratigraphic  wells in 2006 and 2008 that
demonstrated  the presence of  suitable reservoir rocks  similar to those in San
Pedro. Gravity and magnetic data has shown that structures suitable for trapping
hydrocarbons  may also be present. However,  seismic acquisition is necessary in
order  to define  targets for  exploration wells.  Block XXI  is a  large permit
covering 3030 km2 near the provincial capital city of Piura (pop. 380,000). Land
use  is open dry grazing land with a  very low population density. The port town
of  Talara  75 km  to  the  northwest  is  an  oilfield hub with a refinery. The
northern  Peru crude oil pipeline traverses the  southern end of Block XXI to an
export terminal on Bayovar Bay.



Location  map showing Block XXI and Gold Oil's Peru assets - please see attached
PDF.






Map: 


http://hugin.info/137929/R/1483665/418854.pdf




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Source: Gold Oil PLC via Thomson Reuters ONE

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