BOIL.L Regulatory News (BOIL)

8 May 2006 07:02

Plectrum Petroleum PLC08 May 2006 PRESS RELEASE 8 May 2006 PLECTRUM PETROLEUM PLC ("PLECTRUM", "THE COMPANY", OR "THE GROUP") Plectrum signs Joint Venture Agreement with Gold Oil Plc for Block Z34 Offshore Peru Plectrum is pleased to announce that it has agreed to form a joint venture withAIM listed Gold Oil Plc in Block Z34, offshore Peru. The two companies havejointly given notice to the authorities to convert Gold's existing PromotionAgreement into a 30 year Exploration & Exploitation Contract. Under the terms ofthe joint venture Plectrum will carry Gold through the initial seismic phase ofthe work programme to earn a 50% working interest. Block Z34 sits in the prolific Talara Basin which has produced to date in excessof 1.7 billion barrels of oil and 340 billion cubic feet of gas(1). The 3713 km(2) block (equivalent to 14 North Sea Blocks) sits adjacent to existingproducing concessions in water depths of 100-3000m, yet has a sparse existingdata set of just 500km 2D seismic and no wells. The initial work programme willbe to acquire a conventional modern seismic grid and enhance these data withmarine magnetotelluric (MMT) and Electro Magnetic (EM) studies. Final completion of the transaction is subject to the qualification of bothcompanies as approved contractors and the negotiation with and approval of theExploration Contract terms by the Peruvian authorities. Mike Whyatt, Plectrum's Executive Chairman, commented: "I am delighted that our strategy of building a portfolio of assets, in areaswhere the application of innovative new exploration technologies cansignificantly enhance pre-drilling resource assessments, is finally bearingfruit. The Peruvian continental shelf is just such an area and we look forwardto working together with Gold to evaluate this highly prospective yet vastlyunder explored offshore block." For further information, please contact: Plectrum Petroleum Plc 01330 826 710Mike Whyatt, Executive ChairmanMike Evans, Chief Operating Officerwww.plectrum.co.uk Corporate Synergy 020 7448 4400John PriorDavid Seal Aquila Financial Ltd 020 7202 2600Peter ReillyVivienne Maceywww.aquila-financial.com Note 1: Higley D (2004), The Talara Basin Province of Northwestern Peru:Cretaceous-TertiaryTotal Petroleum System: U.S. Dept. of the Interior, U.S.Geological Survey Bulletin 2206-A Notes to editors Plectrum Petroleum Plc is an AIM listed exploration and production company.Plectrum's strategy is to seek out offshore exploration activities around theglobe that can be significantly de-risked before drilling by the application ofinnovative electromagnetic (EM) imaging technology. Since incorporation, Plectrum has focused on researching and quantifying a widerange of acquisitions and establishing the Company as an industry player. Anumber of applications have been made, and are in progress, for rights toexploration acreage around the world including in the UK, Peru, Africa andAustralia. The Talara Basin The Talara Basin province is located on the continental shelf along the northerncoast of Peru. A location map will be available on the Company's website: www.plectrum.co.uk This information is provided by RNS The company news service from the London Stock Exchange