3rd Nov 2006 11:01
Gold Oil PLC03 November 2006 FOR IMMEDIATE RELEASE 3rd November 2006 GOLD OIL EXTENDS ITS MOU WITH MAN FERROSTAAL AND COMMITS TO PHASE TWO OF THE NANCY, BURDINE AND MAXINE FIELDS IN COLOMBIA GOLD OIL EXTENDS ITS MOU WITH MAN FERROSTAAL Gold Oil has signed a second extension of one year to its existing MOU with MANFerrostaal of Essen, Germany to evaluate the feasibility of developing apetrochemical plant in Northern Peru. Under the terms of the MOU, MAN Ferrostaalis responsible for evaluating the petrochemical plant and Gold Oil isresponsible for evaluating the gas supplies and pipeline transportation options. The MOU envisages several phases of development with Gold Oil having an optionto participate in the petrochemical plant and MAN Ferrostaal an option toparticipate in the upstream gas supply. COLOMBIA The Company has, together with its partners in the Nancy, Burdine and MaxineLicence, advised Ecopetrol, the state oil company in Colombia that they intendto proceed with the second phase of the licence. A development work programmeand budget is being prepared now for the re-entry of the Burdine 1, 4 and 5wells. The first phase was the re-entry of the Nancy 1 well which is now producing atbetween 245 and 835 bopd of oil. The average production over the first month todate that included many shutdowns to tie in gas handling equipment was 485.6bopd. With increased confidence in the Nancy well, much of the onsite rentedequipment (such as pumps and tanks) is now being replaced with purchasedequipment. The Company's working interest is 40%. Note: Mike Burchell, B.Sc., 66, has over 40 years experience in the oil and gasbusiness. He has read and approved the technical disclosure in this regulatoryannouncement. ENQUIRIES: Gary Moore Managing Director; Tel: 01737833597 Email: [email protected] Mike Burchell Chairman; Tel: 01372361772 Email: [email protected] Roland Cornish Beaumont Cornish Limited; Tel: 020 7628 3396 NOTE TO EDITORS The NBM area lies in the South West of Colombia in forested jungle some 100 kmfrom the Ecuador and Peruvian borders. The area is surrounded by many producingoil fields and some access roads needed to be repaired before the rig couldreach the Nancy area. The target reservoirs are at depths mostly less than10,000 feet. Oil export infrastructure lies some 13 km to the west and initiallythe oil is trucked to the pipeline entry terminal, operated by Ecopetrol.Depending on production levels, a pipeline may be installed at a later date. Inthe past there have been some isolated cases of terrorism, but with manycompanies operating in the area for years without any trouble, more and morecompanies are looking to enter the area. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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