Operations Update

6th August
2009
Gold Oil plc
 
                            GOLD OIL PLC
 
     Operational and Reserves & Resources Update Colombia & Peru
 
Gold Oil plc  ("Gold" or "the  Company") is pleased  to announce  the
following operational updates for its business units in Colombia  and
Peru:
 
Nancy Burdine Maxine Fields Colombia:
 
In early July the work over programme of three wells, Burdine 1, 4  &
5, was initiated.  The first step was to open each of the three wells
and check their mechanical  status. This phase  was completed in  the
last week of July and the  Company is pleased to report that  despite
some difficulties encountered with having to recover an old pump from
the Burdine  5  well,  all three  wells  were  found to  be  in  good
mechanical condition.  Consequently all three  wells are ready to  be
production tested.   Burdine 1 was the first well to be tested and  a
mobile pumping  unit  was brought  onto  site.  After  five  days  of
production testing, the  Burdine-1 well flowed at an average rate  of
220 barrels per day (bopd) of light, 25.6o API crude oil from N and U
sands.  Bottom hole pressure at different lifting regimens and  rates
are being  measured  and selective  testing  for each  sand  will  be
carried out. Over the next two weeks the Company will test Burdine  4
and 5 with  similar testing regimes  and it is  hopeful of  analogous
production results on these wells.
 
Once the production tests  are concluded the  Company hopes that  all
three wells can  be put  on long  term production.   The Company  has
already formulated a fast track production scheme to bring the  wells
on stream  via the  existing Nancy  facilities.   This  involves  the
expansion of production facilities at the Nancy field, which is  less
than 2 kms  away from the  Burdine wells, to  handle the  anticipated
additional production.
 
The Nancy, Burdine and  Maxine fields were  discovered by Texaco  and
put on  stream in  1976. The  Nancy-1 well  produced initially  1,400
bopd, the well production then declined to approximately 200 bopd  by
1995 when  the  well  was  abandoned. The  fields  were  returned  to
Ecopetrol who licensed  them to  a group  of local  oil and  services
companies ("the Union Temporal") in 2003. On March 2006, the  Company
farmed into  the  licence  through Union  Temporal.  Since  then  the
Company has  bought  out  one  of  the  partners  (Invepetrol).   The
partners in this block are Ecopetrol (41%) and Union Temporal  (59%).
 Union  Temporal  is  formed  by  5  companies:  Gold  Oil  (58.05%),
Termotécnica  (18.05%),  Ingeniería  y  Servicios  Petroleros   Ltda.
(18.05%), Bioss (2.84%) and one individual with (3%).  The  Company's
net working interest is 27.4%
 
The Nancy-1 well was re-entered in 2006 and production from the  well
re-commenced and peaked at  a rate of 699  bopd in November 2006  and
has since declined to about 250 bopd.
 
STATEMENT OF NET  OIL RESERVES & CONTINGENT RESOURCES AS DETERMINED
ON 1ST JULY 2009
Set out below are extracts from a report dated 22 July 2009 prepared
by Morning Star Consultants LLC, giving an estimate of reserves and
resources attributable to Gold.
 
Nancy-Burdine Fields: Republic of Colombia
 
+-------------------------------------------------------------------+
| 1.     Oil Reserves (Gold   |      As of       |      As of       |
| Oil's                       |  1 October 2008  |   1 July 2009    |
|   Interest)                 | Oil Thousand bbl | Oil Thousand bbl |
|                             |                  |                  |
|-----------------------------+------------------+------------------|
| Proved Developed Producing  |             44.6 |             29.6 |
|-----------------------------+------------------+------------------|
| Probable Undeveloped        |                  |          1,287.2 |
|-----------------------------+------------------+------------------|
| Proved plus Probable        |             44.6 |          1,316.8 |
|-----------------------------+------------------+------------------|
| Possible Developed          |          1,114.5 |            981.8 |
| Non-Producing               |                  |                  |
|-----------------------------+------------------+------------------|
| Possible Undeveloped        |          1,114.5 |          1,020.7 |
|-----------------------------+------------------+------------------|
| Total Proved plus Probable  |          2,273.6 |          3,319.3 |
| plus Possible               |                  |                  |
|-----------------------------+------------------+------------------|
|  2. Oil Resources           |                  |                  |
|-----------------------------+------------------+------------------|
| Contingent Undeveloped      |          6,250.1 |          5,747.8 |
|-----------------------------+------------------+------------------|
| Prospective Undeveloped     |          3,201.3 |          3,201.3 |
+-------------------------------------------------------------------+
 
Notes:
1.        The Reserve estimates shown in this report are based upon
the joint reserves and resource definitions of the Society of
Petroleum Engineers
2.        Reserves and Resources estimates have been prepared by
Morning Star Consultants, LCC of Houston, Texas, USA
3.        Net volumes have been calculated based on Gold Oil's 58.05%
Participating Interest, which after royalty amounts to 27.4%
 
Block Z34 & Block XXI Peru:
 
On 22 May  2009 the Company  announced that SCAN  Geophysical SA  had
completed the acquisition of 2,013kms on Block Z34, offshore northern
Peru.  Despite some delays in getting the information, the Company is
pleased to  report that  Gold has  now started  the reprocessing  and
initial interpretation of the acquired data.  The amount of data that
the Company has received is substantial and the work is taking longer
than originally  anticipated.   The  initial  work  of  geological  &
geophysical petroleum interpretation  team has been  focussed on  the
near shore  area  and they  have  already identified  four  potential
geological structures  very  similar  to  the  petroleum  traps  that
contain proven and developed reserves of more then 300MMbbl  (already
produced and still producing) in  the adjacent Block Z2B operated  by
PetroTech Peruana. Those leads are located within the band of 200-500
meters of water  depth, and  therefore should be  relatively easy  to
develop.
 
The processing and interpretation team are now working on the area of
deeper water (with water depths in excess of 2,000 meters) that cover
more than 60% of  the Z34 area and  where large turbidite  structures
may be present.  Results for this area should be ready in the  fourth
quarter of this year.
 
In May  2009  the  Company  announced that  it  had  entered  into  a
non-exclusive letter of intent with  a Peruvian company concerning  a
potential farm in  on blocks Z34  and XXI.  The  Company has been  in
extensive negotiation with this  group but has  been unable to  reach
any final  agreement  and  the  letter of  intent  has  now  lapsed.
However,  the  Company  is   in  discussions  with  other   companies
concerning similar deals to farm in to both our onshore and  offshore
Peruvian assets.
 
The Chairman of Gold Oil, Mark  Pritchard said that "I am pleased  to
report the  increased reserves  and production  in the  Nancy-Burdine
wells that should show a significant  increase in our cash flow  from
now on.  The first results from the partial interpretation of the  2D
seismic on Block Z34 are potentially very exciting and should lead to
a major upgrade of the potential of this block."
 
For further information on the Company, visit www.goldoilplc.com or
contact:
 
Gold Oil
Mark Pritchard, Chairman                                        Tel:
0208 332 6882
 
Seymour Pierce
Jonathan Wright / Richard Redmayne                    Tel: 020 7107
8000
 
Notes to Editors
 
Gold Oil is an AIM-listed oil and gas exploration and production
company primarily focused on opportunities in Latin America.  It has
oil production in Colombia and significant exploration acreage and
licences both onshore and offshore in Peru and onshore Colombia.
 
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