BOIL.L Regulatory News (BOIL)

4 Jan 2007 09:00

Gold Oil PLC04 January 2007 FOR IMMEDIATE RELEASE 4 January 2007 GOLD OIL plc ("Gold Oil" or "the Company") Interim Report for the period 1 May 2006 to 31 October 2006 Copies of the Interim Report have been posted to shareholders and are alsoavailable for collection at the offices of the Company, free of charge,Finsgate, 5-7 Cranwood Street, London EC1V 9EE during normal office hours. Chairman's Statement to Shareholders Since the publication of the 2006 Annual Report the Company, on 9 November 2006,restarted testing operations on its Peruvian exploration well on Block XXI, SanAlberto-1X. Testing continued until 7 December 2006 when the well was pluggedand abandoned. When testing first started, only highly saline water was producedfrom the lower Palaeozoic and at the start of the recent operations a cementplug was placed at the base of the well with the intention of shutting off thewater. However, all the higher Palaeozoic zones that logs had indicated to behydrocarbon bearing also produced highly saline water. The Tertiary Upper Verdunsands, also interpreted as containing hydrocarbons, when perforated and testedproduced only highly saline water. We will analyse the information gained from the well and make a decision inabout six months time on drilling a new well to retest the Tertiary andPalaeozoic reservoirs. On 5 December the Exploration and Exploitation Contract for our offshore BlockZ34 was signed by the Board of Perupetro. The Contract is for 30 years but hasto be ratified by the Minister for Energy and Mines which we expect will takeplace early in 2007. The Company is operator with 50% and our partner isPlectrum Oil & Gas. In Colombia the operator started production from the Nancy field in October 2006at an average stabilised rate of 485.6 bopd (net to Gold's 40% interest andafter Royalty and State share - 91.3 bopd). The Company has agreed with theoperator of the Nancy- Burdine-Maxine licence to carry out more workovers in theNancy and Burdine fields which should contribute a significant additionalproduction and cash flow to the company. In June 2006 the Company raised £2.4 million through a placement of 47 millionnew shares at 7.5 pence per ordinary share and if all 23.5 million Warrants, atan exercise price of 7.5p/share, are exercised before the end of December thenan additional £1.8 million will have been raised. Although at the end of theperiod the Company, since trading commenced, showed a loss of £1.2 million, thecash balance was £2.9 million, reflecting the hard work by the Company's staffto work efficiently and control costs. Looking ahead I expect in 2007 to see the Company carrying out seismic on BlockZ34 and a possible new well on Block XXI. The Company is continuing to seek outlow risk oil and gas reserves in Colombia and Peru that will generate cash aswell as additional exploration acreage in both countries. Due to the energy and dedication of our team, the Company has made very goodprogress and despite the initial disappointment on our first well in Peru I lookforward to the progress that we will make in 2007. For further information, please contact: Michael Burchell, Director, Gold Oil plc on 01372 361772 Roland Cornish, Beaumont Cornish Limited on 020 7628 3396 Consolidated Profit and Loss Accountfor the Six Months to 31 October 2006 Note 6 Months to 6 Months to Year to 31 October 31 October 30 April 2006 2005 2006 Unaudited Audited Audited £'000 £'000 £'000 Turnover - - -Administrative expenses (340) (334) (698)Operating loss (340) (334) (698)Interest received 86 83 141Loss on ordinary activities before (254) (251) (557)taxationTaxation - - -Loss on ordinary activities after taxation (254) (251) (557)Dividends - - -Deficit for the period (254) (251) (557) Loss per share:Basic 2 (0.06p) (0.07p) (0.16p)Diluted (0.05p) (0.07p) (0.14p) The company's turnover and operating loss arise from continuing operations. There were no recognised gains or losses other than those recognised in theprofit and loss account above. Consolidated Balance Sheetas at 31 October 2006 Note As at As at As at 31 October 31 October 30 April 2006 2005 2006 Unaudited Audited Audited £'000 £'000 £'000Fixed assetsEquipment 29 25 22Intangibles 299 - 299Investments 192 150 192 520 175 513Current assetsDebtors 258 194 290Cash at bank and in hand 2,961 3,076 2,460 3,219 3,270 2,750Creditors: amounts falling due within (116) (69) (103)one yearNet current assets 3,103 3,201 2,647Total assets less current liabilities 3,623 3,376 3,160 Capital and reservesCalled up share capital 3 93 87 90Share premium account 4,722 3,906 4,004Profit and loss account (1,192) (617) (934) 3,623 3,376 3,160 Consolidated Cash Flow Statementfor the Six Months to 31 October 2006 Note 6 Months to 6 Months to Year to 31 October 31 October 30 April 2006 2005 2006 Unaudited Audited Audited £'000 £'000 £'000Cash outflow from operating 4 (297) (527) (950)activitiesReturn from investment and servicing 86 83 141of financeCapital expenditure (74) (151) (503)Financing 786 39 140Cash (decrease)/increase in the 501 (556) (1,172)periodOpening net debt 2,460 3,632 3,632Closing net debt 2,961 3,076 2,460 Reconciliation of movements in shareholders' funds £'000 £'000 £'000 Loss for the period (254) (251) (557)New share capital subscribed, net of expenses - 39 -Foreign exchange reserves (4) 8 (3) (258) (204) (560)Opening shareholders' funds (934) (413) (374)Closing shareholders' funds (1,192) (617) (934) Notes to the Interim Report 1. Accounting Policies The interim report has been prepared using accounting policies consistent withthose set out in the company's Annual Report and Accounts for the period to 30April 2006. They have been prepared on a going concern basis. The interim report for the six months to 31 October 2006 was approved by theBoard on 4 January 2007. 2. Loss per Share 6 Months to 6 Months to 1 May 2005 31 October 2006 31 October to 30 April 2005 2006 Pence Pence Pence Loss per ordinary share-basic (0.06p) (0.07p) (0.16p)- diluted (0.05p) (0.07p) (0.14p) The loss per ordinary share is based on the Company's loss for the period of£254,000 (30 April 2006 - £557,000; 31 October 2005 - £251,000) and a weightedaverage number of shares in issue of 463,995,682 (30 April 2006 - 393,851,507;31 October 2005 - 237,750,000). The potentially dilutive warrants issued were 52,845,682 (30 April 2006 -43,981,918; 31 October 2005 - Nil). 3. Called up Share Capital In June 2006, the Company issued 47 million new ordinary shares at 7.5p each. 23.5 million Warrants can be exercised at 7.5p per share before end December2006. 4. Reconciliation of operating loss to net cash outflow from operatingactivities 6 Months to 6 Months to 1 May 2005 31 October 31 October to 30 April 2006 2005 2006 £'000 £'000 £'000 Operating loss (340) (334) (698)Depreciation 2 1 14Exchange rate movement on overseas (4) 8 3assets(Increase)/Decrease in debtors 32 (155) (255)(Decrease)/Increase in creditors 13 (47) (14)Net cash outflow from operating (297) (527) (950)activities 5. Financial information The information for the year ended 30 April 2006 has been extracted from theaudited accounts for that period which have been delivered to the Registrar ofCompanies and received an unqualified audit opinion (and incorporate theinformation for 31 October 2005). The unaudited results for the six months havebeen prepared on a basis consistent with the accounting policies disclosed inthe Company's 2006 accounts and do not constitute statutory accounts within themeaning of Section 240 of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange