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

at this stage 17p i wouldnt have bought more but at this level yes and have increased.

Sub 8p would be an opportunity imo, to buy a small stake & take 15-20% in the short term.

Website update.

The objectives of the wild cat were the Tertiary Verdun sands that produce gas in Olympic's La Casita gas field 20 - 40 Kms to the west of San Alberto-1 and the fractured Palaeozoic quartzites that produce oil in PetroTech's offshore San Pedro field 50 kms to the west. Logging, drilling results and regional information showed 250 gross feet of hydrocarbon bearing sands in the Palaeozoic and 315 gross feet of hydrocarbon bearing sands in the Verdun. The decision was taken to production test these hydrocarbon bearing sands in both the Verdun and the Palaeozoic.

After circulating to completion fluid and running a slotted-liner over the Palaeozoic the drilling rig was moved off location. After clearing the location a work-over hoist and test facilities moved on to the well on 22nd August and produced highly saline formation water at 960 barrels per day from the base of the Palaeozoic, below the hydrocarbon bearing interval. After a period of reflection a heavier rig was moved back onto the well on the 9th November, and attempts were immediately made to remove the slotted liner. These attempts failed and after attempts to cut the liner and recover it in shorter sections failed, it was decided to attempt to test the deepest Palaeozoic by cementing off the water as best as we could and perforating the slotted liner above the cement plug. This failed to prevent water from being produced and eventually we attempted to isolate the deeper Palaeozoic and perforate higher in the Palaeozoic. Again, the same water flows were encountered. As all attempts to shut off the water had failed it was decided to plug and abandon the testing of the Palaeozoic and leave it for a future well. Fortunately well costs in this area are still low in the $1.5 million region.

The Verdun was then isolated from the Palaeozoic and perforated, but again only the same highly saline water was produced.

A port mortem study and remapping exercise is under way to determine the best way forward to appraise the area.

I'd suggest they get some folk who know what they're up to. Sheer incompetence here IMO.

;-))))

Big Al why you say that?

The were under obligation for their first drill to drill down as far as they did, this was a "wild cat" to gain information, they have now forfilled their obligation and can now use the information gained on the next drill this time they will stop well before the water was encounted.

Syd

Why they don't want the water. It worth something IMO

syd

I'm still at a loss to understand why, after studying the logs, they set a slotted liner and tested water. The logs would have shown water, so why go the route they did?

If you know anything about the oil business it doesn't make sense .......... unless they're not telling us the whole story.

PS

Luckily wells are relatively cheap, as they say, and they have another go at it.

However, how much more money might they waste?

Also increased my holding today @ .0848. 120 bopd may well be breakeven on normal operations however with workover and increased capital expenditure I can't see GOO being in the position to breakeven. Onwards and upwards. No change in the days sp but hey the spread has fallen again, support level here I think.

explosive- liking the NBM deal though, the post on advfn with a link on Burdine Maxine is very positive. it has been commercial. past flows around 4400bopd on the three fields, also further exploration upside. they have more than enough for next wild cat and Burdine workovers. Plectrum are funding 1st phase on Z34. money in bank to fund next acquisition. they would have received sizeable funds from exercised warrants recently and cash flow up 50% on Nancy1 last month and imo will increase if last statement anything to go by.

bigal- the ratio for well success is not 1 for 1. i expect they achieved what they need to know from SA-1X. it would have been a miracle if it proved commercial. Petrotech (Z2B) got lucky with first wildcat drill in the area surrounding goo's XXI, finding oil in San Pedro areas of Sechura Basin.

its a risky business Colombia ratios are about 1 in 6 so Peru?. would be surprised if they used same drill contractor again as they didnt seem that competent.

they were committed to drill to 6500ft with Perupetro but Palaeozoic reservoir (produces oil on Z2B) located at 5000ft, so next time they will know how far to go. without the water problems.

Not sure I like the sound of aquisition at the moment, would prefer the board to keep play tight and hitting targets as stormy waters always ahead........sound like cynic now!!..... Workover and further analysis are what I'd like to see, after all if flow rates can be improved a broker re-rating would attract attention within the market which could see support at levels of recent high..... As always Lizard your post reflects the sunny side to GOO which outweigh recent negative vibes.... Should my stop loss in GFM be triggered I may have funds to increase further.

Wow,
What a shock i got when i came back on here after smiling about how i had topped up night before RNS,My average is where we are at now with the SP,

WILL HOLD,as doubt it will fall much further,good luck to all holders,and LIZARD,thanyou for all your INFORMATIVE POSTS!

get in ERX going to do an HML tomorrow or friday

capetown no problem.

would like to see another farm in deal done similar to NBM soon in Colombia. annual report says 'expect one or more in 2006' so possibly but knowing the process maybe new year. also the license application has been in 3 months so?.

Basically - the next bit of news is now critical in order to regain shareholder trust and confidence.

GET INTO OXUS GOLD OR YOU'LL LIVE TO REGRET....OXS

(( Re: OXS - Pourquoi? The 12-month graph shows a 60% decline = not exactly inspiring, Maestro, is it? ))

markus .... concentrate on your swing and putting .... far more profitable than paying any attention to maestro's inane ramblings

i think maestro will be more regretful not buying goo at these levels!.

merely in an attempt to rationalise anyone's reason to buy at these levels, the chart below shows some sort of support/resistance about here ...... the real question is whether or not the company is worth putting money into anyway - e.g. should one set any store by Mr P and his large stake?