Replacement - Block Z34 Update

RNS Number : 4074Z

Gold Oil PLC

15 March 2012

 



This announcement replaces the early Block Z34 Update RNS number 3868Z.  The reissue is due to a change in the estimate of the geological chance of success ("GCoS") which now ranges from a low of 16.2% to a high of 32.4%.

15^th March 2012                                                                  GOLD OIL PLC

("Gold Oil" or the "Company")

Peru Block Z34 Competent Persons Report and Farm Out Update

Gold Oil, the AIM-listed oil and gas exploration and production company, (AIM: GOO), with a primary focus on opportunities in Latin America, is pleased to provide the following update:

Competent Person's Report 

Gold Oil has now completed the processing and interpretation of the 3D marine seismic Erika North and South surveys.  An independent Competent Person's Report ("CPR") has been received from DeGolyer and MacNaughton ("D&M") which provides new volume and valuation estimates for twelve prospects identified by Gold Oil on the block.  The mean prospective resources certified by D&M total a combined 2.02 billion barrels of oil with a mean potential net present value of US$ 2.6 billion, as detailed in the tables below:

D&M Prospective Resource estimates  15th March 2012	Low	Best	High	Mean	Risked mean
Prospective Resource Volumes (million barrels)	1,329	1,937	2,821	2,022	414

D&M Net Potential Present Value estimates 15th March 2012	Low	Best	High	Mean
Potential Net Present Value at 10% discount factor (US$ million)	1,783	2,503	3,514	2,593

In July and August 2011, Gold Oil acquired in excess of 808sq km of 3D seismic surveys in two areas of Block Z34 offshore Talara Basin, Peru. The seismic survey data was processed by CGGVeritas in the second half of 2011 and interpretation followed. Interpretation was completed in February this year and the results of twelve key prospects were provided to D&M who have undertaken an independent assessment of the results. D&M's evaluation is based solely on the interpretation of the 3D seismic surveys, and does not address the numerous additional leads identified previously by Gold Oil from the 2D seismic data, nor the additional prospects identified by the 3D data beyond the twelve key prospects. Of the prospects identified, D&M provided an estimate of the geological chance of success ("GCoS") for each prospect, which ranges from a low of 16.2% to a high of 32.4%.  The prospective resources identified and previously presented by Gold Oil over the leads in Block Z34 have now been redefined on the Erika 3D surveys and renamed.

This report was prepared in Dallas by D&M, the Texas-based consulting company. These estimates of prospective resources have been prepared using definitions promulgated by the Petroleum Resources Management System (PRMS).  Under these definitions, the estimated oil volumes to be potentially recovered cannot be considered reserves, as the structures have not been discovered or economically produced.

Under the PRMS definitions, the estimated resources attributable have been classified as "prospective resources."  These estimates of resources have been derived using probabilistic analysis considering the distribution of the hydrocarbon-bearing rock in each area, estimated reservoir parameters, and estimated recovery efficiency.

A copy of the full report will be available on the Gold Oil website (www.goldoilplc.com) in due course.

Farm out process 

The farm out process is progressing well with the data room open and available to prospective partners from early February.  Considerable interest in the opportunity has been shown by a large number of major international oil companies and in order to accommodate the level of interest and at the wishes of some potential farminees the bid deadline has now been extended to early May 2012. 

Commenting on the update, Chief Executive Officer Richard Mew said, "We have made good progress on Block Z34 over the past year having raised the capital to finance the 3D seismic acquisition programme, and subsequent processing and interpretation. This, combined with the extensive in house work done, has improved our knowledge and understanding of this key asset considerably.  I am very pleased, therefore, to be able to announce this update and finalisation of the Competent Person's Report.  The volumes are very substantial and it is heartening to have an independent assessment of our prospective resources confirm our own findings.  We now look forward to a successful conclusion to our farm out process being the next significant step in our plan to commercialise this important asset."

In accordance with AIM guidelines, Ian Reid, Gold Oil's Exploration Director who is a petroleum geologist with28 years experience in technical and executive roles in the oil and gas industry, is the qualified person that has reviewed and approved the technical information contained in this announcement

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 / David Banks (Corporate Broking) 

FirstEnergy Capital LLP (Joint Broker):                                                                                                                 

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

Buchanan (Financial PR)                                                                                 Tel: [phone]

Tim Thompson/Ben Romney/Helen Chan

 

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