Testing Update

Gold Oil PLC
07 December 2006


For Immediate Release                                        7th December 2006


 Gold Oil plc ('Gold') update on the testing of their Peruvian exploration well

                                 San Alberto-1X

San Alberto-1X was selected following extensive regional geological and
geophysical studies that tied in Block XXI to other Palaeozoic and Tertiary
wells and fields. The well was spudded on 11th July 2006 and reached total depth
of 5,113 feet on the 3rd August 2006, meeting the geological objectives of the
drilling programme.


The objectives of the wild cat were the Tertiary Verdun sands that produce gas
in Olympic's La Casita gas field 20 - 40 Kms to the west of San Alberto-1 and
the fractured Palaeozoic quartzites that produce oil in PetroTech's offshore San
Pedro field 50 kms to the west. Logging, drilling results and regional
information showed 250 gross feet of hydrocarbon bearing sands in the Palaeozoic
and 315 gross feet of hydrocarbon bearing sands in the Verdun. The decision was
taken to production test these hydrocarbon bearing sands in both the Verdun and
the Palaeozoic.


After circulating to completion fluid and running a slotted-liner over the
Palaeozoic the drilling rig was moved off location. After clearing the location
a work-over hoist and test facilities moved on to the well on 22nd August and
produced highly saline formation water at 960 barrels per day from the base of
the Palaeozoic, below the hydrocarbon bearing interval. After a period of
reflection a heavier rig was moved back onto the well on the 9th November, and
attempts were immediately made to remove the slotted liner. These attempts
failed and after attempts to cut the liner and recover it in shorter sections
failed, it was decided to attempt to test the deepest Palaeozoic by cementing
off the water as best as we could and perforating the slotted liner above the
cement plug. This failed to prevent water from being produced and eventually we
attempted to isolate the deeper Palaeozoic and perforate higher in the
Palaeozoic. Again, the same water flows were encountered. As all attempts to
shut off the water had failed it was decided to plug and abandon the testing of
the Palaeozoic and leave it for a future well. Fortunately well costs in this
area are still low in the $1.5 million region.


The Verdun was then isolated from the Palaeozoic and perforated, but again only
the same highly saline water was produced.


Gary Moore, Managing Director of the Company, said that 'This is obviously very
disappointing for the Company as we had several independent specialist companies
to review and interpret the logs before going back into the well and attempting
to test the zones interpreted as being hydrocarbon bearing. Due to mechanical
problems with the well we were unable to stem the flow of water and test the
reservoirs properly. Despite the 'disappointing' results, we have obtained a
good quantity of high quality and useful technical data which was a prerequisite
to a proper understanding of the block and the whole region, so in that respect
this first wild cat served its purpose.'


The technical information contained in this announcement has been reviewed and
approved by Mike Burchell, B.Sc., 66, member of the SPE and with over 45 years
experience in the oil and gas business.


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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