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

Cynic - ST "Infection" or ST "Disease" - it's all the same thing.

Anyway, from one lot of goo (sorry for being disgusting, but I'm reaching desperately for a link here) to another: time for me to have a deeper look at what Gold Oil has in store.

If anyone's wondering why I haven't DYOR'd properly sooner, it's because I was distinctly underwhelmed when GOO announced they were buying the Ayoluengo assets from Northern Petroleum, which I have been following for donkey's. Ayo produced at the time about 3.5 teacups of oil per decade, and really gave me the impression that GOO was probably a bit mickey mouse. So I concentrated on other things instead.

My thoughts:

Plus points:

- good portfolio of assets with fair potential for exploration: Peru (Onshore block XXI 50%, Offshore Block Z-34, apparently 100%), Colombia (Nancy 40%, Burdine and Maxine, both 40%, offering potential for re-entry) , Spain (Ayoluengo 11%, albeit in tiny fields).
- current drilling in Peru looking positive for hydrocarbons; production testing being prepared.
- branch due to open in Brazil shortly
- small amount of production from Ayoluengo
- production due any day now from Nancy; potential follow-up production from re-entry of Burdine and Maxine
- good cash position at present
- apparently very low costs of production e.g. $2.36/bbl at Nancy



Negatives:

- management seem to have been caught out by the sloth of bureaucracy in Brazil, this in spite of having initially played a very canny hand when it came to accessing Brazilian licenses; they then failed to get the Brazilian office and paperwork set up in time for the recent 8th round of Licensing.

- sketchy information on the company website. Most irritatingly, the lack of explicit information as to the size of GOO's share in its licences, which I would say is a necessary piece of information for potential shareholders. I had to dig through the RNS's to get the figures.

- current producing assets (Spain) are negligible, share of near-term production at Nancy likely to be only 80 bopd (EDIT) initially, rising to 200 as the asset is developed.

- hefty royalty/Government share regime in Peru for known productive blocks cuts revenue significantly.

- Company is extremely reliant on success at San-Alberto-1X in Peru in order to hit the big time.


Further observations

- GOO will need to add to its portfolio of licences as failure to produce in Peru would lead to the current licence holding suddenly looking very anorexic.

Have I missed anything?

apart from the product, the management and the business system, there is one last thing which is the: MISSION. when the mission is excellent,it is a very good start but when the business remains faithful,and loyal to its mission, it will survive, it will prosper and it will grow. however, when the mission is lost, the business will die slowly but surely. the best example is Marks&Spencer, they lost their mission for a while and pay for it but now they rediscover it and start a new life of success. same thing applies to the reputation of a person. private equities are very good in buying cheap, businesses which have lost their excellent mission.
NOW what's GOO MISSION?
GOO has been established in order to identify and acquire projects in Oil&Gas sector, with particular emphasis on Central and South America and 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 Directors believe that their broad collective expirience 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 identifications and evaluation of acquisition opportunities. Now the key word is I D E N T I F I C A T I O N. So far GOO has been very loyal to its mission and i remain invested for longterm. One should leave or flee a business that has lost its mission. here are some little fishes with top banana mission: CFE, PVR, FAO, GTL, NMI, and of course GOO. there ARE more but will you recognise them earlier and stay put till the big bavarian party starts in October?

soultraders
top banana job, many thanks.

GOO decides to focus its initial entry into the South American upstream business on Northern Peru for several reasons:

* The peruvian fiscal regime is relatively benign comprising royalty and corporation tax.

*Peruvian authorities welcome new oil companies without placing too rigorous corporate criteria, hoping thereby to stimulate investment.

soultraders

Yes, I agree that GOO IS extremely reliant on success at SAN ALBERTO in Peru in order to hit the big time. And what is the time now? It is exactly the BIGTIME.
The prospectivity of the block SAN ALBERTO WELL-XXI is further enhanced by the recent PETROTECH offshore discovery oil in fractured basement palaeozoic.
regional mapping, plus our aeromagnetic survey, has shown potential on block XXI for palaeozoic discovery. Finally, mapping of the palaeozoic basement shows, in the San Alberto prospect, a similar structure to that tested by PETROTECH, San Pedro which was reported to have tested at 1 5 0 0 BOPD
As migration is from the deep kitchen offshore then the San Alberto project is well positioned to trap oil and, given its structural context, there is a strong likelihood that fracturing is well developed and extensive. said GOO.
Now the question is: WHAT IS 1500BOPD IS DOING TO GOO IF GOO FINDS THAT AMOUNT AS PETROTECH? WILL IT BE SWEET OR SOUR?
WELL, I LIKE IT SWEET AND SOUR. best luck to all and to myself.

PALAEOZOIC is: the lowest fossili-ferous strata or the era in which these were formed.
STRATA IS: A horizontal layer of any material; a bed of sedimentary rock

soultrader- you are obviously new to goo and dont understand why they bought this interest in spain. they bought this asset only to gain operator status at a low cost. this is essential in order to pursue in peru. ie you have to have operator status to proceed e and p. goo on gaining this have sold majority of this holding to ast to concentrate on s america only.

it has since been reduced from 50% to 11.25% (further exploration/drilling commencing at the moment).

http://www.goldoilplc.com/release07.html

having briefly read your posts it is clear you dont know much about this company. for example Nancy 80bpd?. it is understood they are looking to achieve initially 500bpd giving goo 40% 200bpd on nancy well only further exploration is planned on nancy maxine bourdine fields and plan to re enter 4 other exisiting wells with workover contracts. they plan to gradually increase production.

George,

Thanks for your feedback and additional info, particularly re San Alberto/San Pedro.

Lizard, thanks -actually I was aware of the strategy with picking up the Ayoluengo asset as it was covered in the announcements when NOP sold; what I missed was GOO's mission and portfolio.

At the current SP I am undecided about this one - I have a fair amount of similar risk on my portfolio already in the shape of BLR (I hear Cynic laughing!), RIFT and EOG Warrants, and may not want to take on more.

My big concern with GOO is that if current ops in Peru don't produce, the SP will suffer a big retrace with little left in the portfolio to bail it out. I agree, though, that the potential upside is exciting and certainly wish every success to those who are in already.

you say all that and you own rift dont make me laugh!.- good luck anyway.

Lizard, thanks for pointing out re 80 bopd at Nancy - I meant to add that it would be developed and have now done so.

By my reckoning the 20% royalty cuts GOO down to a net 32% of Nancy - I don't mean to split hairs but it's the kind of thing that's not being pointed out by the company in its RNS's, yet makes a difference to the bottom line.

As for Rift, we shall see - I have no axe to grind and I'm sure all of us will pcik both winners and losers at different times. I picked RIFT because of its blue-sky potential; at 5 TCF estimated resources it could be a VOG if it's successful :o)

st- agree difficult to choose. homework and luck needed.

SOULTRADERS
Please do not underestimate what GOO can do. i don't own RIFT but first look at it seems attractive but GOO is top banana but iam in to win and to lose. i think by the end of this AUgust you will join us or i will join you with RIFT. however BLR IS STARTING TO SHOW ITS LIGHT. WILL SEE. BEST LUCK

soul* ..... would i ever laugh at you? ... heaven forfend! .... BLR is actually too small for CFDs, though i do confess i have no innate love affair with heavy oils .... they are soooo unsexy! ....... as for GOO, i have a pretty modest holding and i guess i hold the whole of it at least for the timebeing ..... btw, have also bought a few PXC this morning ..... would have bought more, but sp is already up about 4% from Friday ..... if it falls back enough, i may double up

Good morning everyone!

Cynic, LOL! Sorry to hear you don't find heavy oil sexy - I find a little steaming usually does it for me. If not I can always hope for some fracture stimulation :o)

I don't particularly prefer one hydrocarbon over another - it's breadth of portfolio and the numbers game that tend to sway me.

Best of luck to GOO holders - I may live to regret not being in; had I given it some more thought below 6 or 7p I might have gone for it, but with so many other potentials out there I'm keeping some of my powder dry. HNR should be annoucing more exploration drilling news any day, and newcomer Aurelian looks as if it could be worth a go too. All IMO, PDYOR, etc.

Can anyone tell me, are the shares indicated as sell 2x250000 9.75p really buys

safety the answer is they are sells, but i am not selling mine.

why get excited even iof they are sells? It's only 50k; not exactly big beer

T trades gone wrong i reckon- i expect a number were expecting news flow by now including me. but no rush as long as they get it right.