Gold Oil has just been floated on Aim and is involved in the exploration for oil in the Americas. The company has just signed an agreement with PetroPeru for exploration in the north of the country and also they have signed a memorandum of understanding with MAN Ferrostaal of Essen, Germany for the evaluation and feasibility study for a more than 200 mln stg petrochemical plant to be constructed in northern Peru.

Following the release of this news AFX commented that brokers believe this could potentially be huge for Gold Oil.

Agincourt - 21 Oct'04 - 23:13 - 238 of 240 (premium)


ABOUT THE COMPANY

Gold Oil PLC is a newly incorporated company that has been established in order to identify and acquire projects in the natural resources sector, with particular emphasis on oil and gas projects predominantly within Central and Southern America, initially focused on Peru. Such projects may be acquired through direct investment, or by acquiring all or part of an existing or newly formed company or business.

The Company presently faces limited competition, as there are few, if any, North American or European oil and gas companies operating in Northern Peru. Additionally the Company will benefit from a low cost workforce. The executive management has spent the last eight years working in the region and believe that they have the contacts and local knowledge to capture and exploit economically attractive opportunities.

The Directors believe that their broad collective experience in the area of mergers and acquisitions and corporate and financial management in relation to small and medium sized businesses will assist them in the identification and evaluation of acquisition opportunities. As appropriate the Company will engage third party accountants and other professional advisers to assist in the due diligence on potential targets.




Agincourt - 21 Oct'04 - 23:13 - 239 of 240 (premium)


PHILOSOPHY AND STRATEGY

The Directors intend to identify and acquire projects which may be in the exploration phase, but it is more likely that they will be at a later stage of development. The Directors believe that significant acquisition opportunities exist and that they have the contacts, experience and expertise to exploit such opportunities. Where considered appropriate by the Directors, competent professional advice will be taken on the merits of a project.

The Directors see exploration and appraisal of existing discoveries as being the key to the future of the Company. While the strategy will always be to build up exploration value by acquiring good acreage on attractive terms and subsequently conducting sound geological and seismic operations to upgrade the acreage to drillable status, the Company will consider bringing in an industry partner at the drilling stage to reduce exposure to the costs and to the risks which exploration drilling always carries.

The Directors believe that opportunities exist in many parts of the world which have potential but where exploration, development and production has lagged behind the more fashionable areas for a variety of technical, market and political reasons. By building up a low cost acreage position and performing sound technical work to upgrade the concessions to the point where a larger company was confident enough to participate and put up the money for the drilling and development, the founders were able to add substantial value to the concessions while, at the same time, offsetting the bigger risks and financing requirements always inherently present in major seismic programmes, exploration drilling and field development.


Agincourt - 21 Oct'04 - 23:14 - 240 of 240 (premium)


TARGET AREAS OF INTEREST

PERU

The initial focus of the Company's activities will be in the region of Northern Peru. This area is well documented as being a rich oil and gas province with huge unexplored and under developed basins, and is an area that has produced over one billion barrels of oil over the past 100 years. Many hydrocarbons discoveries were made in the region many years ago but were considered uneconomic or immaterial at the time.

Presently, Peru is producing oil and gas from fields located in the northwestern region onshore and offshore, and the northern and central Selva (or jungle) regions. Total production of oil in the country in year 2002 was 35,355,774 barrels, with a daily average of 95,854 BOPD. Main production came from the northern jungle with a total production of 22,470,130 bbls averaging 61,562 BOPD. At the end of year 2001, total proven hydrocarbon reserves for the country were at 399 MMBO, and 8.7 tcfg.

At present, the country is committed to offer to national and international companies, top conditions to encourage planning and execution of Exploration Contracts and Technical Evaluation Studies in order for the country to recover reserves and improve the national hydrocarbon production.

The exploration activity performed in the Peruvian territory has generated abundant seismic gravity, magnetic, geochemical information and well data.

Three types of basins, which coincide with the three natural regions in Peru, have been identified:

The Andean Pericratonic Basins situated to the east of the Andean Cordillera.

The Intermountain Basins correspond to depressions located in the Andean Cordilleras.

The Pacific Coastal Basins and longitudinally distributed along the coastal belt and the Continental border.

PeruPetro S.A. is a state corporation created in November 1993 under the New Hydrocarbons Law operating on the same lines as a private company. Its main responsibilities are:

To promote private capital investment in the exploration and production of hydrocarbons in Peru.

To negotiate, enter into and supervise all upstream petroleum contracts and technical evaluation agreements on behalf of the government.

To act as liaison between contractors and other government agencies.

Since its creation in 1993, PeruPetro has entered into numerous hydrocarbon exploration and production contracts. Most recently, a new and more favorable royalty scheme has been established that lowers the minimum royalty to 5% (maximum 20%), and with other incentive and more favorable regulatory treatment.

Conditions for foreign investment in upstream contracts in Peru have been greatly improved. The New Hydrocarbons Law establishes, among other advantages:

Freedom to enter and repatriate funds to and from Peru. No permits required.

Absolute freedom to sell or dispose of the hydrocarbons produced.

Absolute freedom to set sale prices according to market supply and demand.

There are no state regulations.

The possibility of international arbitration.




SURINAME

The basin in Suriname has all the ingredients to make it an attractive oil and gas producing area: a world class source rock, multiple reservoirs-seal pairs and proven stratigraphic and structural traps.

The prospects for oil has been highlighted by the discovery of four oil accumulations, one of which is currently producing 12,500 barrels per day that Saatsolie (the national oil company) is operating.

The basin has been described as one of the last remaining poorly explored, but highly prospective basins with an estimate of 15 BBOE of reserves to be discovered. In the years 1963 through 1986, 22 wells were drilled offshore Suriname. In this large area of approximately 170,000 km2, 17 out of the 22 wells had hydrocarbon shows or columns.

In 1999 and 2001, regional seismic surveys were conducted in the shelf and deep water areas, as well as an extensive aeromagnetic survey. This new data, combined with modern geological concepts have allowed Staatsolie to create a much better understanding of the hydrocarbon potential in the basin.

By virtue of the Mining Decree, concession rights for petroleum activities are granted exclusively to State Enterprises. According to the Petroleum Law, State Enterprises with petroleum concession rights, are authorized to enter into petroleum agreements with other established petroleum companies. After a bidding round or if a petroleum company has indicated interest in a certain open area, petroleum agreements are negotiated with Staatsolie Maatschappij Suriname N.V. (State Oil Company Suriname), which holds several onshore and offshore concessions.

Staatsolie has its own onshore operation in the Tambaredjo oil field, with a daily production of 12,000 barrels Saramacca crude (2003). The oil reserves in this field amount to at least 140 million barrels. Exploration, evaluation and production development activities are still in progress to discover new reservoirs and to increase production.

Since its founding in 1980, Staatsolie has negotiated petroleum agreements with several oil companies. These contracts were the result of direct contract negotiations initiated by the Contractors. Staatsolie started the promotion of the hydrocarbon potential via bidding rounds in 2001.

Taken from ADVFN

247 - 22 Oct'04 - 22:22 - 361 of 373


Good Evening,

I made a call to the company today to ascertain what the implication of the recent announcement meant to them. What transpires was very interesting. It seems that the border region with Ecuador has been known to have vast amounts of oil deposits. Mining in Northern Peru had never commenced due to local problems with indigenous Indians which had prevented previous exploration. This has now been rectified with approval by the local Amazonian Indian Tribes.

The Gentleman which I spoke to also mentioned that there is another contract in the offing in Suriname which potentially could be major for the company.

I asked about the refinery project and the comment was that they were presently in the process of a feasibility study. If this looked good then there was ample capacity in Norther Peru to feed this project with the additional possibility of piping oil from Ecuador to the new plant for processing.

All in all this looks like a very interesting company with contacts in the right places. If any one of these projects actually comes to fruition then the current share price will look pitifull in terms of what it will be in the future. You can fully understand why the news item reproduced above mentioned the word HUGE.

Fully agree, been watching these for a bit and I can see a lot of mileage in this company. Just waiting for a bit of capital then I will be in, keeping a close eye on proceedings!

Bought in today, intending to hold long term. Lots of possible upside, without the risks of PET, (ie, getting killed!). Will be interesting to see how it all pans out, although expecting to see a very volatile SP in the short term until progress is made.

Good luck!

Regards

PTH

I understand that most of the equity in GOO is very tightly held, only 40mill available in general circulation. Looking at the buy to sell ratio today, (and I know this cannot be relied upon totally), there would seem to be no reason for a drop in the SP today. Always easy to believe that the MMs are short of stock, but on this occasion I really think they are. Treeshakers!!

PTH

I can understand why they would want to get their hands on as many of these as possible in the near future. A volatile SP in the sjort term is good for me as I cannot afford to get in right now, so up and down is good for me! Medium to long term potentially very valuable shares.

Looks like another new high for oil tomorrow and add to that that the inventory figures will be comming out it looks like it could be an interesting day ahead for us.

This sector is certainly very much the I want sector at present.

http://uk.biz.yahoo.com/041019/237/f4tw8.html

Taking a second look: the potential of Peru's oil and gas reserves
Off the west coast of Peru, about 1500: Spanish conquistadors sight oil slicks on the water. They're not quite sure what to do with them, eventually using them to season the wood on their ships. Fast forward to the 20th Century: satellite images confirm the presence of the oil seeps. Oil companies send drilling ships to probe the ocean bed under very deep water to locate the source. They spend millions, collect mountains of data about the geology underlying the ocean floor, but fail to find an economically viable basin to exploit.

With exploratory drilling costs running at about $25 million per hole in the ocean, and $10 million per hole in the jungle, oil companies need to find significant reserves to justify the expense. They've run up against a brick wall: all throughout the 1990s, companies used the same data and ended up drilling dry wells. No one disputes the fact that there's oil -- under the Pacific, up north and in the jungles of Peru. What's at issue is exactly where it is, how much there is of it, and how easy it is to extract, refine and transport.

Creating the incentive

In a poor country like Peru, where one in five people cannot even meet their basic survival needs, petrodollars could mean a huge shot in the arm. The Government of Peru is playing a major role in promoting these potential oilfields, and CIDA, through the Canadian Petroleum Institute, is helping create the incentive for the private sector to take the risks.

The Energy Regulatory Assistance Project's aim is to help the Government of Peru to regulate and monitor activities in its oil and gas sector. Training is being provided in regulatory issues, management practices, environmental standards and guidelines and natural gas technology as well. To get the ball rolling on the exploration side, Canadian computers, equipment and technical assistants - geologists, economists and petroleum engineers - are shedding new light on the geological information that once showed so much promise. They're also sharing the latest in Canadian exploration techniques to sweeten the incentive.

"What we're doing is re-packaging the data to attract new investments," says Calgary-based Gary Wine, Leader of the Basin Evaluation Component of the project. Gary's group is taking existing seismic and well data, loading it into sophisticated computers and using high-end software to find new patterns or new geological "stories" that will help attract exploration companies.

Getting the message out

It's a mammoth project. Sorting through the seemingly endless data on sandstone, rock, shale and other materials is a specialty. So is presenting it in a way meaningful to potential investors. "I've been in the industry for 25 years," says Mr. Wine. "I have a pretty good idea of what the oil companies are looking for."

The UNIX computer is helping sort through the maze of information. The mountains of data, some on tape, and some even in hard copy, is not only being manipulated to show new relationships; it's also being presented in new and more attractive ways. Software, including a specially designed program to generate highly sophisticated maps, is creating a variety of formats: reports, presentations, prospectuses and other publications. Mr. Wine and other experts use the material at meetings, conferences and promotional events.

Strictly speaking, the information belongs to the Government of Peru; but it is provided, often free of charge, to interested petroleum companies. That includes Canadian companies, some of whom are already participating in the project and gaining a competitive edge in the process.

It's a long walk from persistent oil seeps in the ocean to a producing and thriving oilfield. But CIDA is helping Peru prepare for just that eventuality - strengthening the technical and managerial expertise within government and industry, creating a supportive and healthy legislative environment and building a promising economic climate. The rest is up to the private sector.

"No, there's no guarantees," says Mr. Wine. "But everything in my experience tells me that there's enough oil there to take a second look."

tell me 107606, what price do you think iwill be possible to buy at?I am not sure from what i have read that there will be a lot of downward movement?If so what do you think you could buy at or is it just wishful thinking on your behalf? Am thinking of buying and now is looking the time! Would be interested in views

Bought in at 7.20p

john 50 well that makes me feel better I have done the same. thanks for comment

Hi Chaps

I should have waited, bought in a few days ago at 8.0p. Long term hold though. Willfagg, you following me about? LOL

PTH

well as long as its awinning streak, then im right behind you.lets hope its good luck....just bought CYC if you want to follow me

Sorry Willfagg, I can't get excited by CYC. I'll wait until they have more clients. I know it may be too late by then, but I prefer CFP.

Regards

PTH

Sorry willfagg away today. But today was the day, there will be a lot of toing and froing, but you'll be in profit soon. Might a be a good in and out share if you have any free deals!?

Dear pth I continue to follow , am also in CFP. may the force be with you.

pth/107606. Gents have to say CYC has performed the better of the two since buying in. Is this just a lull before the storm on GOO? Whats the next news we can expect?

I am sure that some point GOO will have its day, but there is no definte point for info as far as I know. They are doing what they need to do. As I have always said there will be a lot of movement on this one, just look at PET. And as far as waiting for news goes, look at PCI. They have been floating around 16p to 17p for ages waiting for something. I'm still waiting also for PET to do its thing, then I can put my fingers in some other pies (ASC, GOO, SPS). Did you see AEN this week? Nice rise, got out too early due to cashflow probs. Goddamn it.

gone quiet anyone heard anything.Quietness on small shares usually equals drifting....downwards. IMO

Anyone know why its drifting further down?