Update on General Meeting

RNS Number : 4228J
Gold Oil PLC
07 August 2012
 



Gold Oil PLC

 

("Gold Oil" or the "Company")

 

Update on General meeting on Friday 10 August 2012

 

Dated: 7 August 2012

 

Gold Oil, the AIM-listed oil and gas exploration and production company, (AIM: GOO), with a primary focus on Latin America would like to provide the following update on the General Meeting to be held on Friday 10 August 2012 at 9a.m.

 

The Company was suspended from trading following the AGM on 29 June 2012 as a consequence of a dissenting shareholder group blocking re-appointments of the board.

Since then, Mr Julian Garcia, as the sole director of the Company appointed Mr Michael Neville and Mr William Daily to the board of Gold Oil.  Mr Neville has assumed the interim role of Non-executive Chairman, until a new independent Chairman has been appointed to chair the Company.

Over the past two years the position of the Company has been substantially improved and the board believes that the Company is (or was) directed by individuals with a track record of delivering value to shareholders.

·     Mr Bell's investment of £5 million underpinned Gold Oil's financial position in 2010;

·     The company's continued ownership of licences Bock XXI and Z34 was secured;

·     Geological and geophysical work including seismic was conducted in key licence Z34 to high grade the block;

·     This resulted in 12 prospects and leads addressing prospective resources of 2.02 billion barrels being identified and assess by DeGoyler McNaughton as having a potential value of $2.62 bn;

·     Began the farm out process of Z34 on 6 February, 2012 and discussion with potential farminees are ongoing;

·     Free carried well on Rosa Blanca;

·     Work-over of NBM resulted in a daily production increase from 260 barrels per day to an average of 550 barrels per day;

·     Raised a further £10 million in a difficult market in 2011; and

·     Farmed out Block XXI to Brazilian mining giant Vale for a $10 million work-over and $2.4 million cost recovery.

The board is concerned that the actions of the dissident shareholders has affected share price, disrupted the farm out as well as operations and questions their motives.

The board's strategy is to:

·     Build on the momentum of the previous board;

·     Advance the farm out of Z34 through active engagement with the interested parties to a reach a satisfactory conclusion;

·     Focus on the work programme for NBM extension beyond 2015 for increased production

·     Pursue the opportunities already identified on the ground in Colombia and elsewhere;

·     CREATE A TRULY INDEPENDENT BOARD WHICH CAN REPRESENT THE INTERESTS OF ALL SHAREHOLDERS

·     Realise the true potential and value of the Company for the benefit of all shareholders; and

·     Increase share price to levels pre the AGM.

The Board urges Shareholders to reject the dissident shareholder's board nominees at the General Meeting on Friday 10 August 2012 and allow the board to focus on advancing the Company.

 

Enquiries

 

Mike Neville

 

+44 (0) 7775 606175

Gold Oil Plc

Non-executive Chairman

Jonathan Wright

(Corporate Finance)

Richard Redmayne

(Corporate Broking)

 

+44 (0) 207 107 8000

Seymour Pierce Ltd

Nominated Adviser

& Joint Broker

 

John Simpson

Nick Cowles

 

+44 (0) 207 016 8912

+44 (0) 161 831 1512

 

Zeus Capital Limited

Financial Advisor

Hugh Sanderson / Travis Inlow

 

+ 44 (0) 20 7448 0200

FirstEnergy Capital LLP

Joint Broker

Tim Thompson/Helen Chan/Ben Romney

 

+ 44 (0) 20 7466 5000

Buchanan

Financial PR

 

Updates on the Company's activities are regularly posted on its websitewww.goldoilplc.com

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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