Gold Oil Commits to Phase 2 in Colombia

Gold Oil PLC said that it has, together with its partners in the Nancy, Burdine and Maxine License, advised Ecopetrol, the state oil company in Colombia that they intend to proceed with the second phase of the license. A development work program and budget is being prepared now for the re-entry of the Burdine 1, 4 and 5 wells.

The first phase was the re-entry of the Nancy 1 well, which is now producing at between 245 and 835 bopd of oil. The average production over the first month to date that included many shutdowns to tie in gas handling equipment was 485.6 bopd. With increased confidence in the Nancy well, much of the onsite rented equipment (such as pumps and tanks) is now being replaced with purchased equipment. The Company's working interest is 40%.