Gold Oil Lines Up Rig for Peruvian Program

Gold Oil has signed a contract with a local Drilling Contractor (GMP S.A.) for the drilling of a single exploration well on Block XXI, onshore Sechura Basin in North West Peru. The well is the first on the Block and is targeting both gas at less than 3,000 feet in the Verdun reservoir and oil in the deeper 6,000 feet Palaeozoic. As the block is huge, apart from searching for hydrocarbons the well is also necessary to set markers for a future seismic and drilling campaign. The target date for spudding the well is June 15 which is only six weeks since the Company signed the License with the Minister of Energy and Mines and less than two years since the company came to AIM.

Gold also reports that the Operator (Union Temporal) of the Nancy-Bourdine-Maxine (NBM) Oil Fields in the South West of Colombia has signed a contract with a local drilling contractor for working over the Nancy-1 well. The initial work program involves re-entering the existing well to install a jet pump allowing production to recommence from the existing zones and also to perforate zones previously ignored which will add to production. The work is expected to start later this month.

Commenting on today's announcement, Gary Moore, Managing Director of Gold Oil, stated: Gary Moore, Managing Director of Gold, said "We are delighted to have been able to source equipment and resources in such a quick timescale to commence operations in both Peru and Colombia in a very demanding market Results from each operation should be known within 2-3 weeks from the commencement of activities on each project".