Gold Oil PLC (AIM: GOO) said it will production-test the Burdine 4 and 5 wells in the Putumayo Basin in the south of Colombia in the next two weeks after Burdine-1 was successfully tested at a flow rate of 220 barrels per day of light crude.
Once the production tests are concluded the company hopes that all three wells can be put on long term production via the existing Nancy facilities. This involves the expansion of production facilities at the Nancy field, which is less than 2 kilometres away from the Burdine wells.
Gold Oil also announced extracts from a resources estimate prepared for the Nancy-Burdine fields, showing proved plus probable reserves of 1.316 million barrels as of July 1 2009, up from the October 2008 estimate of 44,600 barrels.
The proved plus probable plus possible resource estimate has risen to 3.319 million barrels from 2.273 million.
Gold Oil added it has now begun the reprocessing and initial interpretation of the data acquired for 2,013 kilometres of Block Z34 offshore northern Peru. The initial work of the interpretation team has been focused 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 than 300 million barrels that 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 that covers more than 60 percent of the Z34 area. Results for this area should be ready in the fourth quarter of this year.
The letter of intent with a Peruvian company concerning a potential farm in on blocks Z34 and XXI, announced in May 2009, has now lapsed after Gold Oil was unable to reach an agreement during negotiations. However, it is in discussions with other companies concerning similar deals to farm in to both our onshore and offshore Peruvian assets.