BOIL.L Regulatory News (BOIL)

9 Mar 2006 11:49

Gold Oil PLC09 March 2006 FOR IMMEDIATE RELEASE 8th March 2006 GOLD OIL ACQUIRES A 40% WORKING INTEREST IN THE NANCY-BOURDINE-MAXINE OIL AND GAS FIELDS IN COLOMBIA Gold Oil Plc ("Gold") is pleased to announce that it has acquired a significantinterest in the Nancy-Bourdine-Maxine (NBM) Oil Fields in the South West ofColombia. The fields were discovered by Texaco and put on production at 1,400bopd in 1975 to 1995 when they were abandoned for economic reasons. At the timeof abandonment the Nancy 1 well was producing at 200 bopd with no water. TheLicence is held by Union Temporal that is made up of a group of small sizedlocal oil and service companies and individuals led by ex-oil personnel fromcompanies such as BP, Oxy and Schlumberger, all of whom have extensiveexperience in Colombia and the NBM Oil Fields. The transaction, which is subjectto the approval of Ecopetrol, will make Gold the largest partner with a 40%interest. The current plan is to re-enter the Nancy 1 well and recommence production byuse of a jet pump from the existing zones and also to perforate zones previouslyignored. The workover rig is currently being contracted to commence operationsin the next few months. The consideration is $330,000 with an increased share of production for Golduntil payback when a contribution to back costs is made. Gold has to pay itsshare of the re-entry costs estimated at $220,000. Gary Moore, Managing Director of Gold, said "We have been looking at Colombiafor some time and we like the many oil and gas opportunities there. We decidedthat NBM was an ideal low cost entry into a new country with an experienced andvery low cost operator where we have every possibility for early cash flow andexploration upside". Enquiries Gary Moore Managing Director; Tel: 01737833597 Email: gmoore@goldoilplc.com Mike Burchell Chairman; Tel: 01372361772 Email: mikeburchell@hotmail.com Roland Cornish Beaumont Cornish Limited; Tel: 020 7628 3396 NOTE TO EDITORS The Colombian Acreage The NBM area lies in the South West of Colombia in forested jungle some 100 kmfrom the Ecuador and Peruvian borders. The area is surrounded by many producingoil fields and some access roads need to be repaired before the rig can locateto the site. The target reservoirs are at depths mostly less than 10,000 feet.Oil export infrastructure lies some 13 km to the west and initially the oil willbe trucked to the pipeline entry terminal. Depending on production levels, apipeline may be installed at a later date. In the past there have been someisolated cases of terrorism, but many companies have been operating in the areafor years without any trouble. This information is provided by RNS The company news service from the London Stock Exchange