BOIL.L Regulatory News (BOIL)

7 Aug 2006 10:28

Gold Oil PLC07 August 2006 For Immediate Release 7th August 2006 Gold Oil Announces that their Peruvian exploration well San Alberto-1X is preparing to test after logging at total depth. Gold Oil Plc ("Gold Oil"), the London-based oil and gas exploration company,announces that on 7th August 2006 it is preparing to production test its firstexploration well, SA-1X, in Peru drilled on the San Alberto prospect in BlockXXI. SA-1X spudded on 11th July 2006 and reached total depth of 5,113 feet on3rd August 2006. The objectives of the well were the Tertiary Verdun sands that produce gas inOlympic's Las Casita gas field 20 kms to the west of SA-1X and the deeperfractured Palaeozoic quartzites that produce oil in PetroTech's offshore SanPedro field 50 kms to the west. Logging and drilling results in SA-1X andregional information require that both the Verdun and Palaeozoic are productiontested. After circulating to completion fluid and running a liner over the Palaeozoicthe drilling rig will be moved off location. After clearing the location awork-over hoist and test facilities will come on to the location. The objective is to test the extensive Palaeozoic quartzites and the thickTertiary Verdun sands. The latter were logged and cased off before drilling thePalaeozoic. The logs show that in SA-1X the Verdun sands are much thicker thanthe gas bearing Verdun sands in the La Casita field. Well testing is expected to start in two weeks. Commenting on today's announcement, Gary Moore, Managing Director of Gold Oil,stated: "The results of the well are very encouraging and justifies the fast trackapproach that Gold Oil has followed since the Licence was approved by theMinister of Energy and Mines on the 4th of April 2006. The whole planning andoperation of the well has been an exclusively Peruvian one. Once we have theresults of the testing programme we shall finalise our future programme forBlock XXI." The technical information contained in this announcement has been reviewed andapproved by Mike Burchell, B.Sc., 66, member of the SPE and with over 44 yearsexperience in the oil and gas business. Enquiries: Gary Moore, Operations Director Tel: +44 (0)1737833597Email: gmoore@goldoilplc.com Mike Burchell, Chairman Tel. +44 (0) 1372361772Email: 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