Gold Oil, the AIM-listed oil and gas exploration and production company with a primary focus on opportunities in Latin America, provided the following operational update on its operations in Peru.

Block Z34

Farm Out Process

Gold Oil has engaged FirstEnergy Capital to provide advisory services with regard to the farm out of part of its interest in offshore Block Z34. In parallel with the seismic interpretation, the Company expects to commence a formal farm out process of Block Z34 in February 2012, with a data room opened for the industry to undertake their due diligence on the block. Expressions of interest from farminees are expected in April 2012.

Contract Extension

Gold Oil has applied for, and has been granted, an extension to the current second phase of the license governing its operations over the block. PeruPetro has granted Gold Oil (as operator of the block) a three month extension before a decision needs to be taken to enter into the next phase of operations and work obligations. This will allow greater time for the potential incoming partner(s) to contribute to the future work program.

Block XXI

The airplane providing the services for the FALCON gravity and magnetic survey over Block XXI has now arrived in Peru and operations commenced on January 26, 2012.

In November 2011, Vale and Gold Oil signed a contract with the geotechnical company Fugro Airborne Surveys Corp. ("Fugro") for the acquisition and processing of 8,050 line km of an airborne FALCON gravity and magnetic survey over Block XXI. This planned approach of applying high resolution FALCON geophysical data with established 2D seismic techniques will allow Vale and Gold Oil to more effectively delineate targets for exploration drilling.

The program is expected to be completed by mid February and processing by early March 2012, followed by interpretation. This work program will meet the license obligations for the block for its current phase which is required by April 2012.

Following the airborne survey, Gold Oil expects that seismic can be shot in the most attractive areas in 2012 with a well drilled in early 2013, subject to gaining the necessary permits.

Commenting on the update, Chief Executive Officer Richard Mew said, "I am pleased to announce FirstEnergy's involvement with the farm out procedure in Block Z34, coupled with the successful acquisition of a 3 month extension of the license. We look forward to the results of the gravity and magnetic survey over Block XXI, with a view to drilling in 2013."

Tags: Gold Oil plc