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

I am glad to say that the Saudis clearly do not agree with SG (or FT), for otherwise they would not now be gearing up for what looks like some pretty aggressive well-development during 2010.

that said, this stock gives dogs a bad name

HARRYCAT
Oil $82 for Goo's current production which is much better.
Update soon on Peru perhaps?.

news needs to be good......and oil price is being banded round to rise to $100 p.b this year....so see where we are then......been collecting at this low price.....should pay off at some point

The company mention 1,500bpd at Burdine alone. So with oil on the up this is good news for revenue.

also due some seismic results

Hi Lizard,

You mentioned
"The company mention 1,500bpd at Burdine alone.". Is that an actual/estimate? When might it happen?

Sharecruiser. They mentioned these figures in a recent rns.
My guess is that they will get the license extension in place (2015 current expiry) before they try to up production to these levels.

Been a while hope for some news soon, also Peru news would be useful gone very quiet there after they mentioned they were in talks months ago?.

Lizard, Thanks for that. I hope for some good news too.

What happened to the Cuban licence application? Seems to have fallen off the radar & the GOO website.

Slow progress in Cuba HC as it mentioned in the October Finals.
Its progessive Peru news we need to hear about and proper plans for NBM and their 1,500bpd Burdine target.

Agree about the website.

HC- Been told six month report out next week.
It was mentioned by the company that 'active negotiations were in process'
back in November so hopefully we will see these developed to an end result ie farmouts.

That would be very good if the right deals are struck.
Have you noticed Total, Exxon and Shell are looking into Northern Peru and some Asian majors have registered their interest with Perupetro.

Seems a lot going on for 4p, await news as a lot riding on these talks.

Talk of a deal in the New Year

Unfortunately the share price never seems to walk the talk.

Agree
Bought a few anyway.

Still think they have some decent assets.
Seismics look good.

Business Financial Newswire
Gold Oil posts an interim after tax profit of 62,000 compared with a loss of 1.48m last time.

The firm had cash and cash equivalents of 1.8m at the end of October - down from 4.6m a year ago.

The firm said it was in continuing discussions with a number of parties to bring in additional resources to the company.

Chairman Mark Pritchard said: "I am confident that the portfolio of assets that we have remains an attractive proposition.

"The company has demonstrated the significant potential of Block Z34 and remains hopeful that we will be able to do the same with Block XXI in Peru.

"In Colombia we are encouraged by the data acquired on the Azar block and our efforts continue to unlock the substantial reserves and resources in Nancy-Burdine-Maxine."

Highlights
* Continuing discussions with a number of parties to bring in additional resources to the Company;
* Ongoing interpretation of Z34 seismic data, five leads identified with substantial potential; application lodged for up to 250km of 2D seismic on Block XXI Peru;
* Successful acquisition of data on the Azar Block; two wells and further seismic acquisition planned as a result;
* Successful long term test of two Burdine wells; workovers planned;
* Profit on Ordinary Activities After Tax 62,000 (2008 Loss 1.48m)
* Profit Per Share 0.01p (2008 loss 0.31p)

progress and a more solid platform to build on. need to see the deal announced asap which could be on the cards by the sounds of it,
then the assets can get going- finally.

Lizard and Harrycat,

What resources do you feel they are talking about?

resources to dig them out of a hole aka insolvency

SC- A funding partner imo by way of farmout of XXI and Z34 (currently hold 100% of both blocks).
They have said they have a number of options being assessed and hope to announce a deal in the near term.

MP has done a steadying job of reversing a 3m loss into small profit.
Production increases expected at Burdine in first half 2010 (talk of 1,500bopd) which as they say will 'significantly increase cash flow'.

i dont know much about fundamentals, but it would seem a 62,000 profit for the year compared to the previous years loss of 1.4 million is a pretty impressive turnaround and deserves to be included in the Highlights. i do notice however that the cash burn for the year was 2.8 million. to produce a profit of 62,000? with 1.8 million cash left that seems to be less than one years cash needs and the profit seems much too small to be able to meet that need.
rights issue and subsequent mega investor dilution seems the only alternative answer to cynics above suggestion. it seems to be a fire sale. but then i dont know what forward financing arrangements they already have in place to tide them over until all the potential becomes reality, if it ever does. thats because i havent done my homework.
perhaps those that have can explain what i have missed.
thanks and
regards
jkd
edit dont know where that came from i'm sure but "homework" was intended to read "own research" guess i'm still a schoolboy at heart LoL

jkd- They have two blocks to farmout in Peru (100% currently of both). ie the farmout will reduce the risk and the company would be carried through operational activity and next stage obligations DYOR on Z34 potential. They have told us they are in talks and have a 'number of options' available to them regarding funding.

The cash flow is limited at the moment as they only have one well producing at about 250bopd. But they have three wells at Burdine to workover with a target of 1,500bopd, so revenue is expected to 'significantly' (company wording) increase in the near term. Burdine wells have successfully completed long term testing and they now plan to do the workovers and perforate new zones before production can start.

They also have two wells on the Azar concession to drill, this is lower risk than Peru and seismics look very good DYOR Gran Tierra (operator) and what they are doing in the area.