GOLD OIL, the London-based oil exploration company focused on the South American and Caribbean region, announces that in late December 2005, the Company received an Operator Certificate from PeruPetro that allows the Company to carry out seismic, drilling and development operations in Northwest Peru.
The Promotion Licence signed with PeruPetro on October 15, 2004 with PeruPetro for Block XI (now renamed Block XXI) onshore Sechura Basin has been converted to an Exploration and Production Licence. The Licence now goes to the Ministry of Energy and Mines for approval, which could be forthcoming anytime between February and May of this year 2006.
The terms of the E&P Licence commit the Company to either shoot 120 km of 2D seismic or drill a well in the first period of five over a seven year term. The remaining four periods require the Company to either drill a well or drop the acreage. The Licence is for a term of 30 years for oil and 40 years for gas, with a minimum royalty of 5% on wellhead production for the first 5000bopd (30 MMscfd for gas) rising to 20% if and when production reaches 100,000 bopd (600 MMscfd for gas).

Times Article:
Gold Oil is valued in the market at about �15m. That is so small that almost any good news must have a big impact on the share price.
What are the chances of that happening? Run by a former Burmah Oil director, Mike Burchell, Gold Oil will drill the first in a series of wells in the Sechura Basin in April. There will be surprise if it does not find gas, as another company, Olympic, has done just that in a similar formation nearby.
The secondary target, later in the year, will be oil, I gather. A couple of months ago, Petro Tech made a big oil find offshore in the Sechura Basin. The theory is the oil may have migrated up into Gold Oil�s block. Don�t ask me to explain the geology because I don�t speak Palaeozoic. But a decent oil find here would be a company-maker.
Gold Oil has enough cash to fund this year�s drilling programme. And it already has a deal in place to sell its gas to Mann Ferrostaal, a German company that is building an ammonia plant nearby. Getting all that for �15m seemed a bargain to me. But Gold Oil still has to find its gas.

GOLD OIL http://www.goldoilplc.com/index.html

Plectrum Web Site
http://www.plectrum.co.uk/splash_content.html

Wall Street Reporter Interview
http://www.wallstreetreporter.com/interview.php?id=17724&player=real
Growth Equities & Company Research Nov 2007
http://www.goldoilplc.com/docum/gecr_09Nov07_GoldOil_full.pdf
Gold Oil's Presentation On The 10/12/2007
http://www.proactiveinvestors.co.uk/pdf
Research Page Last updated Oct 23 2008
http://www.moneyam.com/InvestorsRoom/posts.php?tid=10572#lastread
6 AUG 2009 Operational and Reserves & Resources Update Colombia & Peru
http://moneyam.uk-wire.com/cgi-bin/articles/20090806084900H3062.html

have you read the rns SA-1x served its purpose as an exploration well. they need to drill again. they would have found out now about the geology/ structure of block.

imo they wont tell us anything on XXI and the results they have. they will look at the situation and look to drill next wildcat when they thought about next stage and way attack it. in the meantime NBM workovers need to get going. Burdine oil field has proven commercial in past so increase bopd and therefore cashflow. another acquisition in another country would be good.

XXI is 30yr license so no rush. need to think and hopefully get it right next time.
NBM crucial and hope they go for more of this type of deal. low risk to back up the high risk (potentially high reward) main plays of XXI Z34 etc.

dont get me wrong i would like to know what potential XXI has, but the way goo operate i would say they will keep tight lipped as usual like Z34 potential etc- not a company that gives figures without any real evidence.

Harry, agree with your sentiments, above, except to say that Mr. P's large buying/holding does give me extra confidence. He (and presumaby his advisors?) obviously consider GOO to be a sound investment. So, in this case, right now, I think literally: "No news is (hopefully....?) good news!".

It depends on your investment strategy.
If you are looking for short term exposure & a quick, modest profit, then the outlook is not great, imo. If you are investing in GOO for the long term (assume Mr. P. is doing that) then the outlook is considerably brighter as we know that they are drilling in an area with proven oil reserves.
But, if I was in GOO for the long term only, I would not be watching these discussion boards as I think they distort the big picture.

i have a core holding in goo as a long term hold and a trading %. quiet period in business anyway so not that bothered.

That seems a sensible way to do it, lizard, and so long as Mr. P. is holding, then confidence should be high. (The tricky bit might be getting out before Mr. P. if the need arises!).

well he didnt get out at 17p. perhaps he has more bullish targets!.

Good points, guys.

Final point is on the spread, I was a little surprised to see a tick up today and even more surprised with the spread which I though would have widened to +13%. I goes to show that even with bad news GOO has a good support level and hardy investors. 'Mr P' holds approx 12.2% if I'm correct which Harrycat makes the point we'll like to get out in front of, even so had expected the sell of to have been higher! All in all supports Lizards theory that most investors are in for the long all and it would seam have settled into the wait.

Would also like to second the post of markusantonius, good posts, unlike so many other BBs which you have to trawl through before finding anything of interest.

website update.

Nancy1 up to 700bopd. nearly 50% increase on last months average bopd.

excellent.

December 11, 2006
Production was up from the previous month with an average flow rate of 699 bopd. It would have been higher but for a series of plant shutdowns to tie in gas handling equipment.

December 11, 2006
Production in the Ayoluengo oilfield within the La Lora Concession (Ascent: 88.75%, Gold Oil plc: 11.25%) has been maintained at over 110 barrels of oil per day for the past eight month (November average: 116 bopd) following the summer implementation of a work-over programme designed to improve well efficiency. Further production enhancements are being planned to increase production and further improve profitability by Q2 2007 including additional workovers, new oil production technology and enzyme treatments for enhance oil recovery.

i like the bit it would have been higher. once this is resolved who knows.

have you all had a look at yesterdays website update.

yes.

Burdine Maxine has produced before @3000bopd and Nancy1 1400bopd (posted advfn last night) these flow rates would be good news for goo.

Anyone any idea what bopd is required to create break even for GOO?

it was a while back i was told but as i remember = 120bopd break/even. anything above profit.

Currenly way undervalued we should be around the 12-13p mark.

syd443s

i think shares have been over sold.

lizard .... just 120 barrels a day???? ..... that would barely keep my car running

cynic?. id get rid of that car then.

this is the level they cover all costs so above this they are in profit Nancy av. 700bopd. did you not read correctly?.

posts on advfn suggest Burdine Maxine oil fields Colombia produced 3000 bopd in past and Nancy 1400bopd so we could be looking at production of over 4000bopd for the NBM deal. which looks very encouraging for goo.