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

bewildered as to why this is good news for GOO, but should i complain?

id rather common sense than use of grammar!.

do you have either? .... lol!
anyway, tell me why this rns was good news for GOO

oh dear! LOL.

So the basic line is, we got rid of Minmet got money in the bank and have exploration interests in Cuba and Latin America to add to are war chest and are also going to expand production in the Nancy-Burdine-Maxine block with four or five re-entries planned for later this year. I can’t see why you are bewildered here cynic this sp is looking good for the rest of this year and for the future.

Imo, it's as broad as it's long; If GOO have a partener to progress their exploration, then they will also have to share profits. No partener means GOO get all the profit, but they are also exposed to all the risk should the exploration fail.

driver .... if that is the case, then why all the discussions with Minmet in the first place?

Minmet was used to get a foot in the door (political strategy Mnt were Irish listed) to Cuba and exposure to their strong cash balance.
the deal has played out as planned.

HC- they do have partners?. only 100% on XXI which they may farmout risk for the next programme.

on my sums goo have c.8m in cash (sterling)- so well funded.

It all does look very political with GOO coming out on top MNT’s shares are down 10%+ and GOO’s are up we can’t complain.

Nice finish up 14.17% on the day.

I've missed the point. Why was this transaction done? Presumably Minmet and Goo both felt good about it. What do you think their viewpoints were?

No sooner then I moan about these being suspended we're back in play and everything looks inorder. Positive news also I thought...

I think you will find, Sharecruiser, that companies with holdings in the U.S. cannot also hold interests in companies in Cuba. Something to do with Castro & U.S. Presidents not being best buddies.
"'When opportunities in the US were identified by Minmet, then clearly the US and
Cuba could not be pursued by the same company" (as quoted by G. Moore of GOO).

A few mentions in the press over the W/End this from the The Times also a mention in the Mail on Saturday.

\"Gold Oil, which, by ending a deal with Minmet to explore for oil in Cuba, was able to sell it\'s Minmet shares for £2.6 million and go it alone in Cuba\".

The fog lifts.

Doing pretty well today considering the blood bath out there in the markets!

From the dark side.

"Shearlock's Small Cap Stock Picks"

Gold Oil winner from Minmet deal

The untangling of Gold Oil’s cross-shareholding with Minmet – both of whose shares have been tipped here in the past – looks to favour the former at the expense of the latter. By selling a big chunk of its holding in Minmet to two of the company’s directors at more than twice today’s share price, Gold Oil gets £2.6 million cash, with the prospect of a further £1.4 million once Minmet’s residual holding of Gold Oil shares is placed. The initial slug of cash should be enough to fund at least four more wells in Peru, where the company continues to work up new targets following the disappointment of last year.

In addition, Gold Oil gets full control of exploration acreage in Cuba and Venezuela, which was formerly part of a joint venture with Minmet.

For its part, Minmet gets to receive around £700,000 cash from the placing of Gold Oil’s remaining holding in the company. Together with the abandonment of the Cuba and Venezuela assets, it is looking at a loss of at least £2.4 million. This, however, will be guaranteed by a company owned by its two controlling directors.

From the moment at which its new boys decided to take Minmet into the US, the company had little option but to exit its Cuban venture. But it has still come out badly from the exercise. Gold Oil (recommended here three years ago at 6.88p, and now 7.3p) remains a hold on the prospects for its Peruvian acreage; Minmet is also worth keeping (now 8.6p compared with a recommendation level here of 12p in August this year) on the basis that its new boys now have a massive incentive to get the share price better."

So the split was politically motivated. If it wasn't for that they would have stayed together.

Now they are apart they lose synergies but maybe one of them wil actually benefit but that wasn't their view before politics forced the situation.

My take is it's negative.

i agree .... how can it not be, if the "talks" were to the benefit of both parties and have now failed

Well it looks to me that GOO done the dirty on MNT leaving GOO with full control of exploration acreage in Cuba and Venezuela and MNT with not much looks positive to me.