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

No idea.

rocket and stick syndrome yet again?

Yes it seemed to coinside with Parvizi selling out and Mrs Parvazi picking up the batton.

something passing strange happening here at this moment - watch carefully

Not up to your usual high standard of eloquence or grammar Mr C!!! Nevertheless, I am watching carefully! ;o)

nothing wrong with the grammar, but certainly puzzled by various aspects of the trading here

Good grief HarryCat I thought for one moment you were talking about my 'coinside'. It's good to know that spelling transgressions get past the grammar police.

Nah, just a dull day on the markets, so I thought I would get out my red pen!!! :o)

activity here has now been very heavy for several days with sp refusing to crash ..... just maybe something useful is afoot, but tread carefully

Bought in yesterday @6.35p sold this morning @6.94p , nice little £812 profit.

You could have made more if you held on. Hindsight is marvelous. Getting to be consistantly above 7.0p

On the rise again.....might even make 8p.....

Great effect on the sp...pulls back immediately..

Final bids are due early May, think a takeover bid is coming.
NPV$2.6bn of Z-34 and Gold Oil hold 100%.
We know the majors are interested so what will be the price?. 15-25p?

surely that relates to bids for a farm-out and is nothing at all to do with a potential offer for the company .... in something of a cull on friday, i'm glad i sold at something north of 7p but just may consider buying back depending on how squiffy the markets look on tuesday

Lizard

As Gold Oil have 815M shares in issue (let's call that a billion) the the NPV of $2.6B would imply $2.6 per share. Of course this could be degraded if there was any debt but as far as I can see there isn't any.

There is of course the matter of interest rates which will affect the NPV. As interest rates might increase (that can't fall by much as they are bottom dwelling already) that will drag the NPV down. Let's assume the interest rates will double over the meaningful life of the NPV then that will halve the return. So now we are looking at $1.3 per share.

Let's halve that again to be prudent. We then get 65c per share which is about 40p.

Now the purchaser wants to make a buck or two so let's halve it again. We then get 20p.

So my calc (guestimate) comes out at something less than 20p whereas your value is something north of 7p. So is it sensible to say that a middling figue of 13.5p would be reasonable.

I now await the flood of opinions which beg to differ.

A lot depends on the farmin'.....what percentages....might go up to 10p...and also depends on how long investors have to wait to get a rig....

SC- I didn't put any value I am just quoting the CPR value of $2.6bn and i still believe this block has much more upside to come as they have only completed 800 sq km of 3D seismic over an area the equivalent size of 17 North Sea blocks
to come to a P50 of over 2 billion barrels.

Agree with rf a lot depends on the percentages etc but have read the recent Broker reports who taking into the account recent upgrades in P50 a two well deal would give a value of 16.24p per share and three well 23.38p per share, they also have forecast a cash investment to redeem previous development costs.

BPZ have just completed a farmout deal for an offshore block north of Z-34 with Pacific Rubiales for $335m with $150m of that in cash for a 49% stake.

I think someone might want to buy Gold Oil as they hold 100% of a very significant asset. Addionally the company has some other very good interests in Colombia and Peru.

The company are also due to start drilling in Colombia anytime now, if not already.

Brave man for getting back in Mr C! I remember trading these way back in 2006/7 until lots of promises never quite came true. I'm not really one for dragging up the past as lots of things can change in the meantime, but just as a reminder of this little gem (heavy sarcasm) your post from 2007 just about covers it:
"cynic - 26 Jan 2007 17:42 - 2812 of 4515
i hold quite enough crap E&P companies in my portfolio (GOO, CHP, VOG) ....."
and am not sure that very much has changed! I seem to remember GOO were about to get licences to drill in Cuba, but that never came to pass either.
Good luck to lizard who seems to have stayed faithful to the cause ever since the start, way back in........... pre Ifraj Parvisi days?

I'm hoping the management have the cojones to run with what might be a successful company rather than selling out. I would dearly love the price to hit £1. I'll keep dreaming.