Operations Update
(Thomson Reuters ONE) - 6th August2009Gold Oil plc GOLD OIL PLC Operational and Reserves & Resources Update Colombia & PeruGold Oil plc ("Gold" or "the Company") is pleased to announce thefollowing operational updates for its business units in Colombia andPeru:Nancy Burdine Maxine Fields Colombia:In early July the work over programme of three wells, Burdine 1, 4 &5, was initiated. The first step was to open each of the three wellsand check their mechanical status. This phase was completed in thelast week of July and the Company is pleased to report that despitesome difficulties encountered with having to recover an old pump fromthe Burdine 5 well, all three wells were found to be in goodmechanical condition. Consequently all three wells are ready to beproduction tested. Burdine 1 was the first well to be tested and amobile pumping unit was brought onto site. After five days ofproduction testing, the Burdine-1 well flowed at an average rate of220 barrels per day (bopd) of light, 25.6o API crude oil from N and Usands. Bottom hole pressure at different lifting regimens and ratesare being measured and selective testing for each sand will becarried out. Over the next two weeks the Company will test Burdine 4and 5 with similar testing regimes and it is hopeful of analogousproduction results on these wells.Once the production tests are concluded the Company hopes that allthree wells can be put on long term production. The Company hasalready formulated a fast track production scheme to bring the wellson stream via the existing Nancy facilities. This involves theexpansion of production facilities at the Nancy field, which is lessthan 2 kms away from the Burdine wells, to handle the anticipatedadditional production.The Nancy, Burdine and Maxine fields were discovered by Texaco andput on stream in 1976. The Nancy-1 well produced initially 1,400bopd, the well production then declined to approximately 200 bopd by1995 when the well was abandoned. The fields were returned toEcopetrol who licensed them to a group of local oil and servicescompanies ("the Union Temporal") in 2003. On March 2006, the Companyfarmed into the licence through Union Temporal. Since then theCompany has bought out one of the partners (Invepetrol). Thepartners in this block are Ecopetrol (41%) and Union Temporal (59%). Union Temporal is formed by 5 companies: Gold Oil (58.05%),Termotécnica (18.05%), Ingeniería y Servicios Petroleros Ltda.(18.05%), Bioss (2.84%) and one individual with (3%). The Company'snet working interest is 27.4%The Nancy-1 well was re-entered in 2006 and production from the wellre-commenced and peaked at a rate of 699 bopd in November 2006 andhas since declined to about 250 bopd.STATEMENT OF NET OIL RESERVES & CONTINGENT RESOURCES AS DETERMINEDON 1ST JULY 2009Set out below are extracts from a report dated 22 July 2009 preparedby Morning Star Consultants LLC, giving an estimate of reserves andresources attributable to Gold.Nancy-Burdine Fields: Republic of Colombia+-------------------------------------------------------------------+| 1. Oil Reserves (Gold | As of | As of || Oil's | 1 October 2008 | 1 July 2009 || Interest) | Oil Thousand bbl | Oil Thousand bbl || | | ||-----------------------------+------------------+------------------|| Proved Developed Producing | 44.6 | 29.6 ||-----------------------------+------------------+------------------|| Probable Undeveloped | | 1,287.2 ||-----------------------------+------------------+------------------|| Proved plus Probable | 44.6 | 1,316.8 ||-----------------------------+------------------+------------------|| Possible Developed | 1,114.5 | 981.8 || Non-Producing | | ||-----------------------------+------------------+------------------|| Possible Undeveloped | 1,114.5 | 1,020.7 ||-----------------------------+------------------+------------------|| Total Proved plus Probable | 2,273.6 | 3,319.3 || plus Possible | | ||-----------------------------+------------------+------------------|| 2. Oil Resources | | ||-----------------------------+------------------+------------------|| Contingent Undeveloped | 6,250.1 | 5,747.8 ||-----------------------------+------------------+------------------|| Prospective Undeveloped | 3,201.3 | 3,201.3 |+-------------------------------------------------------------------+Notes:1. The Reserve estimates shown in this report are based uponthe joint reserves and resource definitions of the Society ofPetroleum Engineers2. Reserves and Resources estimates have been prepared byMorning Star Consultants, LCC of Houston, Texas, USA3. Net volumes have been calculated based on Gold Oil's 58.05%Participating Interest, which after royalty amounts to 27.4%Block Z34 & Block XXI Peru:On 22 May 2009 the Company announced that SCAN Geophysical SA hadcompleted the acquisition of 2,013kms on Block Z34, offshore northernPeru. Despite some delays in getting the information, the Company ispleased to report that Gold has now started the reprocessing andinitial interpretation of the acquired data. The amount of data thatthe Company has received is substantial and the work is taking longerthan originally anticipated. The initial work of geological &geophysical petroleum interpretation team has been focussed on thenear shore area and they have already identified four potentialgeological structures very similar to the petroleum traps thatcontain proven and developed reserves of more then 300MMbbl (alreadyproduced and still producing) in the adjacent Block Z2B operated byPetroTech Peruana. Those leads are located within the band of 200-500meters of water depth, and therefore should be relatively easy todevelop.The processing and interpretation team are now working on the area ofdeeper water (with water depths in excess of 2,000 meters) that covermore than 60% of the Z34 area and where large turbidite structuresmay be present. Results for this area should be ready in the fourthquarter of this year.In May 2009 the Company announced that it had entered into anon-exclusive letter of intent with a Peruvian company concerning apotential farm in on blocks Z34 and XXI. The Company has been inextensive negotiation with this group but has been unable to reachany final agreement and the letter of intent has now lapsed.However, the Company is in discussions with other companiesconcerning similar deals to farm in to both our onshore and offshorePeruvian assets.The Chairman of Gold Oil, Mark Pritchard said that "I am pleased toreport the increased reserves and production in the Nancy-Burdinewells that should show a significant increase in our cash flow fromnow on. The first results from the partial interpretation of the 2Dseismic on Block Z34 are potentially very exciting and should lead toa major upgrade of the potential of this block."For further information on the Company, visit www.goldoilplc.com orcontact:Gold OilMark Pritchard, Chairman Tel:0208 332 6882Seymour PierceJonathan Wright / Richard Redmayne Tel: 020 71078000Notes to EditorsGold Oil is an AIM-listed oil and gas exploration and productioncompany primarily focused on opportunities in Latin America. It hasoil production in Colombia and significant exploration acreage andlicences both onshore and offshore in Peru and onshore Colombia.---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 06.08.2009 - 09:49 Uhr
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