BOIL.L Regulatory News (BOIL)

23 May 2006 16:56

Gold Oil PLC23 May 2006 FOR IMMEDIATE RELEASE 23rd May 2006 GOLD OIL plc SIGNS DRILLING RIG CONTRACT FOR A WELL IN PERU AND PARTICIPATES IN A WORKOVER IN COLOMBIA Gold Oil Plc ("Gold") is pleased to announce that it has signed a contract witha local Drilling Contractor (GMP S.A.) for the drilling of a single explorationwell on Block XXI, onshore Sechura Basin in North West Peru. The well is thefirst on the Block and is targeting both gas at less than 3,000 feet in theVerdun reservoir and oil in the deeper 6,000 feet Palaeozoic. As the block ishuge, apart from searching for hydrocarbons the well is also necessary to setmarkers for a future seismic and drilling campaign. The target date for spuddingthe well is June 15 which is only six weeks since the Company signed the Licencewith the Minister of Energy and Mines and less than two years since the companycame to AIM. Gold is also pleased to announce that the Operator (Union Temporal) of theNancy-Bourdine-Maxine (NBM) Oil Fields in the South West of Colombia has signeda contract with a local drilling contractor for working over the Nancy-1 well.The initial work programme involves re-entering the existing well to install ajet pump allowing production to recommence from the existing zones and also toperforate zones previously ignored which will add to production. The work isexpected to start later this month. Commenting on today's announcement, Gary Moore, Managing Director of Gold Oil,stated: Gary Moore, Managing Director of Gold, said "We are delighted to have been ableto source equipment and resources in such a quick timescale to commenceoperations in both Peru and Colombia in a very demanding market Results fromeach operation should be known within 2-3 weeks from the commencement ofactivities on each project". ENQUIRIES: Gary Moore Managing Director; Tel: 01737 833597 Email: gmoore@goldoilplc.com Mike Burchell Chairman; Tel: 01372361772 Email: mikeburchell@hotmail.com Roland Cornish Beaumont Cornish Limited; Tel: 020 7628 3396 This information is provided by RNS The company news service from the London Stock Exchange