Gold Oil Notes Rosablanca Well Plugged, Abandoned

Gold Oil announced that the Rosablanca-2 well reached a total depth of 2,883 feet and has now been plugged and abandoned following unsuccessful testing.

Since entering the Tablazo and Rosablanca formations last week, drilling had encountered numerous oil and gas shows. Identification of liquid hydrocarbons on electric logs led to a decision to undertake two drill stem tests (DST) in both the Rosablanca and Tablazo formations. A DST in the Rosablanca Formation failed to flow indicating that reservoir to be tight and non-commercial. A second DST in the Tablazo Formation flowed formation water only.

Gold signed an agreement with the Colombian company Montecz SA, whereby Montecz pays 100% of the costs (up to US $2million) of the Rosablanca-2 well in the Rosablanca Block of the Middle Magdalena Basin onshore Colombia. The well is expected to come in under budget. Gold Oil was effectively free carried on the exploration well. The joint venture will evaluate the results of this well over the coming months to determine the remaining prospectivity of the Rosablanca block and determine what future exploration activities, if any, are warranted there. Gold Oil retains a 25% interest in the permit.