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	[phone]	Gold Oil Plc	Non-executive Chairman
Jonathan Wright (Corporate Finance) Richard Redmayne (Corporate Broking)	[phone]	Seymour Pierce Ltd	Nominated Adviser & Joint Broker
John Simpson Nick Cowles	[phone] [phone]	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

 

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