Trading Update

RNS Number : 4722G

Gold Oil PLC

29 June 2012

 



[29] June 2012

Gold Oil PLC

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

Trading Update

Ahead of today's Annual General Meeting, Gold Oil, (AIM: GOO), an oil and natural gas exploration and exploitation company focused on South America, is pleased to announce the following update on its activities in Colombia and Peru:

Azar Block, Colombia

As previously announced, Gran Tierra Energy, the operator of the Azar Block located in the Putumayo Basin, Colombia, has informed Gold Oil that certain delays have been incurred during the drilling of the La Vega Este -1 well on the block.  The Company is expecting an update from the operator soon.

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.

Nancy Burdine Maxine ("NBM") field, Colombia

The Company continues to see production in line with expectations at the NBM field and to reap the benefits of its ongoing relationship building activities.  Discussions continue regarding the proposed application to the Colombian national oil company, Ecopetrol, for an extension of the NBM licence beyond 2015.

Block Z34, Peru

As reported in the Company's final results announcement on 7 June, the farm out process of Z34 is continuing with a number of interested parties.

In the course of discussions with potential farminees, it has become apparent that the farm out is only likely to be consummated in connection with a multi-well campaign across several blocks in the region to maximise rig usage.  Rig availability and drill costs are key issues for some potential farminees and these are being actively investigated by the Company.

The Company is pleased to report that it has received an indicative term sheet regarding a potential farm-in to Block Z34.  The term sheet, which has come from a potential financial partner, is subject to due diligence, completion within a 90 day period and is conditional upon the current board and management of the Company remaining largely unchanged.

Whilst this is an encouraging development, the conditional nature of the term sheet means that there can be no certainty of completion.

Block XXI, Peru

As previously reported, the assignment of the Block to Vale has been approved by Presidential Decree in Peru and it is expected that the assignment will be completed in early July.

For further information, please contact:

Gold Oil PLC                                        

John Bell - Chairman                              Tel (c/o Buchanan): [phone]      

Seymour Pierce Ltd (Nominated Adviser & Joint Broker)

Jonathan Wright/Stewart Dickson             Tel: [phone]

(Corporate Finance)

Richard Redmayne

(Corporate Broking)                  

FirstEnergy Capital LLP (Joint Broker):                                                                                                                 

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

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

Notes to Editors

Gold Oil is an independent oil and natural gas exploration and exploitation company focused on Southern America. Shares in Gold are quoted on the AIM market of the London Stock Exchange (AIM: GOO).

The Company is seeking to maintain a balanced portfolio of high-risk high reward and low risk cash flow projects by establishing significant licence positions concentrated in a few geographic areas. The Company currently has significant acreage and is recognised as an operator for both onshore and offshore Peru, and is an operator with exploration and production licences onshore Colombia.

 

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