4th Sep 2006 10:39
Gold Oil PLC04 September 2006 For Immediate Release 4th September 2006 Gold Oil plc ("Gold") update on the testing of their Peruvian exploration well San Alberto-1X. In the offshore San Pedro field wells have drilled some 500 - 600 feet ofPalaeozoic and the wells are completed "bare foot" with casing set at the top ofthe Palaeozoic but none across the Palaeozoic. In San Alberto-1X Gold drilled 2,300 feet of Palaeozoic and because of severewear on the drilling equipment it was agreed with Perupetro to stop drilling at5,113 feet, 135 feet short of the obligation in our Block XXI licence. Theoriginal plan was to drill to 6,500 feet but because of the geology encounteredin the well Perupetro agreed with our view that at 5,113 feet the well had morethan adequately evaluated the Palaeozoic. The well was logged and some 250 feet of potential hydrocarbon bearingPalaeozoic sands were interpreted by our specialists using their experience andSchlumberger software. 90% of the hydrocarbons are in a single zone below4,570feet with formation water below it. Given the experience of San Pedro it was decided to test the well "bare foot".The drilling rig was moved off the location and a workover hoist moved ontogether with tanks and testing equipment. To reduce the bottom-hole pressure,and so allow the well to flow, completion fluid was swabbed out of the well andthe well flowed highly saline formation water at 960 bwpd. We believe that thiswater is flowing from the zone below the hydrocarbon zone and is preventing anyflow of hydrocarbons from above the water zone. We need to pull the uncemented slotted-liner so that we can shut off the waterand definitively test the hydrocarbon leg. Discussions with the contractor arein hand to mobilise appropriate equipment to the well site. Once the Palaeozoic test is complete we will test the higher Verdun sands whichhave some 315 feet of potential hydrocarbon bearing sands in both the equivalentgas producing Upper Verdun sands in the nearby Las Casita field and the deeperthicker Verdun sands that are not present in Las Casita. 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: [email protected] Mike Burchell Chairman Tel. +44 (0) 1372361772Email: [email protected] Roland Cornish Beaumont Cornish Limited Tel: 020 7628 3396 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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