Spud of La Vega Este -1 well Azar Block

RNS Number : 4190D

Gold Oil PLC

16 May 2012

 



For Immediate Release

16 May 2012

GOLD OIL PLC

("Gold Oil" or the "Company")

Colombia: Spud of La Vega Este -1 well in the Azar Block

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 announce the following update regarding its operations in Colombia.

Gran Tierra Energy, the operator of the Azar Block located in the Putumayo Basin, Colombia has informed Gold Oil that the drilling of the La Vega Este -1 well on the block has commenced with the well spudded on 14th May.  The La Vega Este -1 well will be drilled to a depth of 11,485 feet (Measured Depth) and will target primarily the Villeta formation with the Caballos as a secondary objective.  Gold Oil is currently producing from the Villeta formation in its Nancy Burdine fields. The operator believes the well has a 34% chance of finding oil and could flow at initial rates of between 1,500 and 2,000 bopd if all objectives are oil bearing (300 to 400 bopd net to Gold Oil before royalty payments).

The well is expected to take 35 days to drill.  If during drilling the well indicates oil potential it is intended that the well will be completed and tested using a less expensive work over rig.

Gold Oil has a 20% interest in the block (subject to ANH approval) and under a prior commercial agreement will only contribute 10% to the costs of the well. 

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):

Tim Thompson/Ben Romney/Helen Chan                                                              Tel: + 44 (0) 20 7466 5000

 

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