Gold Oil has signed a Letter of Intent with BGP Geoexplorer PTE Ltd with regard to the acquisition of a marine 3D seismic survey over Block Z34 offshore Peru. The survey is for a total of 500 sq km over the southern part of the license area. As previously announced, the Peruvian Ministry of Energy and Mines has recently approved the environmental permit (PMA) covering Block Z34 for shooting a maximum of 808 sq km of 3D seismic offshore. This initial survey comprises the first phase of 3D seismic over the license and a further (approx. 1,100 sq km) will be required to evaluate the northern area of this large and prospective block.

The vessel, the BGP Pioneer, is currently alongside Las Palmas de Gran Canaria and will mobilize shortly to the operations area. Steaming time to Peru will be approximately 20 days and it is expected, therefore, that the vessel will commence operations, after local clearances, around early July 2011. Total acquisition time is expected to be approximately 30 days from commencement of operations.

Richard Mew, Chief Executive commented, "I am very pleased that we have been able to make such quick progress following our recent placing and gaining environmental permits, in getting a high quality seismic contractor to begin our 3D survey. We expect to finalize the contract terms and to start operations early July. The pace of activity on this key asset has accelerated rapidly in recent months and we fully intend to move as quickly as we can to explore in detail this highly prospective block."

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