Company Information for Gold Oil PLC

Company stock charts - 6 Month chart

AIM; GOO View full financial data

Company Statement

Gold Oil PLC is a newly-incorporated company that has been established in order to identify and acquire projects in the oil and gas sector, with particular emphasis on Central and Southern America, and initially focused on Peru. Such projects may be acquired through direct investment, or by acquiring all or part of an existing or newly-formed company or business.

The Company presently faces limited competition, as there are few, North American or European oil and gas companies operating in Northern Peru. This is, however, changing rapidly as more and more companies see the opportunities available.Additionally, the Company will benefit from a low-cost workforce. The Executive has spent the last twelve years working in the region, and believes that they have the contacts and local knowledge to capture and exploit economically attractive opportunities.

The Directors believe that their broad collective experience in the area of mergers and acquisitions and corporate and financial management in relation to small and medium sized businesses will assist them in the identification and evaluation of acquisition opportunities.

Operations and Technology

Colombia
The Union Temporal is made up of several oil and service companies, all of whom have extensive experience in Colombia working for major oil and service companies.

The deal allows Gold an easy low cost entry into Colombia. The plan is to mobilise a workover rig in Q2 2006 and re-enter the Nancy 1 well to commence production from the existing horizons and perforate some new oil bearing horizons that have been identified from the logs and that were considered sub-economic by Texaco when the oil price was in the mid teens. A jet pump will be installed to boost initial production.

The cost of the work-over is expected to be less than $600,000 with the bulk of the costs being made up of the mobilisation and demobilisation of the rig. Initial production is expected to exceed 200 bopd with 500 bopd set as a target.

Once the Nancy 1 well is in production, the remaining 4 wells in Burdine and Maxine will be re-entered as Nancy was and put on production. The Operator is carrying a P50 reserves figure of 727,500 bbl of crude oil. There is additional exploration upside in the block with the Operator's current estimate of 12 MMbbl. The cost to Gold per bbl of P50 oil is $2.36/bbl.

Peru
Northwestern Peru (Talara Basin and adjacent areas) has already produced some 1,600 million barrels of oil, but is estimated to have remaining potential for new reserves of 2,220 million barrels and 5.8 trillion cubic feet of gas (Gonzales and Alarcon 2002).

The potential for the development of new downstream markets, especially in the energy, agrochemical and gas sectors, is significant, and is viewed by Gold Oil as the commercial key to success in the event that gas reserves are proven in the course of its investment programme, rather than oil. Drilling costs are low in this part of Peru, being in the region of £250,000 for a typical well, as compared with European costs in excess of £1 million.

The desert of Northwestern Peru places less demanding environmental requirements on operators.

In addition the political stability of Peru, its desire to attract new investment and its proximity to the North American “West Coast” market make long term investment here particularly attractive.

Projects
Peru San Alberto Well
Offshore Block Z34

Geographical Spread

Peru, Columbia, Brazil

Board of Directors and Key Management

Major Shareholders