Trading Statement

RNS Number : 7077L

Gold Oil PLC

07 September 2012

 

7th September 2012

GOLD OIL PLC

("Gold Oil" or the "Company")

Gold Oil, the AIM-listed oil and gas exploration and production company, (AIM: GOO), with a primary focus on opportunities in Latin America, wishes to announce the following update following the appointments of the new Directors at the EGM on August 10th, 2012.

Operations

Peru, Block Z-34: Discussions are ongoing with interested parties.  A new strategy has been implemented to create more open discussions with interested companies about the conditions for a potential farm-in.

Peru, Block 21: Gold Oil received $2 mm from Vale on August 8th in accordance with the farm-in agreement with Vale. Vale has a 70% interest and is the Operator. Gold Oil retains 30% and is carried through the remaining exploration program up to US$10 million.

Colombia, Azar Block: The Directors intend to pull out of the Azar Block after a dry well was drilled as announced on 30 August 2012. 

Colombia, Nancy-Burdine Block: It is anticipated that the suspension to production will be lifted at the end of October after consultation with the indigenous people in Putumayo region has been concluded.

Corporate

The Company's General & Administration (G&A) expenses have been reduced by approximately sixty per cent. by closing the office in Australia as of September, reducing the salaries of certain senior employees and the canceling of certain third party services.

As of 10 August 2012 the Company had a cash balance of approximately US$300,000 excluding the Vale payment.  However, a substantial part of the Vale payment has been used to cover the costs of the Azar well in Colombia.

At present, the Company is seeking to renegotiate and/or delay certain outstanding payments based on the available cash on hand.  The Directors anticipate that Company will be able to cover the reduced G&A costs on a monthly basis once production has been restarted in Nancy Burdine.

The Directors are of the opinion that the Company's business is sub-scale and therefore are considering potential options to increase the size of the business.

The Directors are discussing with the Company's Nomad the process for lifting the suspension of trading on the Company's shares on AIM.

Gold Oil Plc

Rudolph Berends (Director) Tel: c/o Seymour Pierce

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

 

END

 

 

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