Gold Oil Forms Partnership with Proen in Brazil

Gold Oil has signed a Co-operation Agreement with Proen Engenharia e Manutencao of Brazil, whereby Gold will act as Operator in a 50/50 joint venture. All investments will be by mutual agreement.

The companies will pursue amongst other things, onshore oil and gas properties previously operated by Petrobras that are now being licensed to small companies in licencing rounds, the next one being in early May this year. Proen is an engineering contractor servicing the oil and gas industry in the whole of Brazil with over 700 employees.

Commenting on today's announcement, Gary Moore, Operations Director of Gold Oil, stated:

"We have been looking for a local partner for some time as we like the opportunities available in Brazil. Our partners are very familiar with working in the oil and gas sector in Brazil and have extensive contacts and relationships that will enhance the acquisition of low risk oil and gas projects in Brazil."