Gold Oil Plc. : Interim Results

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Date: 30 Jan 2012

For immediate release

30 January 2012

GOLD OIL plc

("Gold Oil", "Gold" or "the Company")

Unaudited Interim Financial Information

for the period 1 May 2011 to 31 October 2011

Gold Oil the AIM-listed oil and gas exploration and production company primarily focused on opportunities in Latin America announces its unaudited interim financial information results for the six months ended 31 October 2011.

Highlights

• Gained environmental approvals for marine 3D seismic over Block Z34 offshore Peru;
• Acquired over 800 sq km of marine 3D seismic over Block Z34 offshore Peru;
• Processing commenced of the 3D data
• Workover operations on three Burdine wells completed, and Burdine 1 and 5 wells put on long term test;
• Contract signed Gold Oil and Vale with Fugro (Fugro Airborne Surveys Corp.) for the acquisition and processing of 8,000 line km's of aeromagnetics and aerogravimetrics over Block XXI onshore Peru ;
• Entered into negotiations with Ecopetrol around a contract extension for Nancy Burdine Maxine area.
• Loss on Ordinary Activities After Tax £135k  (2010  : £806k)
• Loss Per Share 0.02p (2010 0.14p)

Chairman's Comments

The period under review has been a challenging one for all small cap companies in our sector. Stock market volatility and the financial problems in Europe and elsewhere led to a lack of appetite for risk in equity markets. Benefiting from the equity raised in April 2011 we have made significant progress in developing our key assets in Peru and Colombia, which I believe to be underrated.

Short term we are focussed on completing the processing and interpretation of the recently acquired 3D marine seismic on Block Z34 and actively engaging with prospective farm-in partners so as to fast track the drilling of a first well by end 2012 / early 2013. We are also engaging an independent expert to produce a fairness evaluation which will be marketed to the broader oil and gas community.

We initiated the environmental application for offshore drilling late last year and we will be seeking suitable rig opportunities to meet our needs, where possible taking advantage of shared rig opportunities, to minimise mobilisation and demobilisation costs.  We have identified a number of well locations and will fine-tune those during seismic interpretation to allow the engineering work for drillable prospects to start.

In Colombia, with improved production as a result of our work-over operations in the Nancy Burdine fields earlier this year, our subsidiary Invepetrol is engaged in negotiations with the Colombian state oil company Ecopetrol, for an extension of the existing licence which expires in 2015.  Success with this application should lead to further development investment to increase oil recovery and to add further wells in this highly attractive area.

Our focus is on Colombia and Peru, where we seek to improve our critical mass to a level sufficient to enable us to meet new entry level criteria for future bid rounds by adding additional production assets and reserves. Other opportunities in Latin America and the Caribbean will be assessed as they arise.

Chief Executive's Statement

Introduction:

The Company made significant progress during the period in developing its assets in Colombia and Peru.  The short term focus has been to acquire, process and interpret 3D marine seismic data for Block Z34 which lies offshore Peru.  Success in gaining a partner for the block on attractive farm-in terms is crucial to the future of the Company.  The Company is also progressing its other assets and positioning itself for growth as opportunities arise and as market conditions improve.

Peru Highlights:

Block Z34 Offshore

Good progress was made during the period under review to bring this key asset to commercialisation.  In May 2011, the Company received the full environmental permit for the acquisition of seismic data and also an extension of time following a period of Force Majeure.  Within a short timeframe the Company negotiated a seismic contract with BGP Geoexplorer for a 3D programme over an area in excess of 800 square km on sufficiently attractive terms to permit the acquisition of seismic data in both the northern and southern areas of the block.

The seismic data was acquired during July and August of 2011 on time and budget and the data was processed by CCG Veritas during the fourth quarter of 2011.  Data processing was completed and available to the Company by end- December.  The Company will engage a third party to assist with the farm-out of Z34 and data will be made available through a data room in February 2012.

The main objective of the Company is to secure a competent and financially capable partner to take equity in the Block and fund a significant portion of the on-going exploration programme.  Given the large area of the licence and the numerous leads and geological formations identified, the ultimate commitments could be significant and as such the Company is looking at a phased approach to ensure the proper exploration of the block.

Block Z34 covers 371,339 hectares and is bordered to the East by Block Z2B, which is producing predominantly oil with some gas and to the North by Block Z38 where the operator has announced plans to drill three exploration wells starting in 2012.

Block XXI Onshore:

The Company has signed a farm-out agreement with Vale, the Brazilian mining company, to take 70% equity in the block in return for a consideration in cash of $2million and a commitment to fund a further exploration/appraisal programme up to a cap of $10million.  The assignment process is moving ahead somewhat slowly due to management change in PeruPetro following the election of a new Government in Peru during 2011.

The Company and Vale have signed a contract with the geotechnical company Fugro (Fugro Airborne Surveys Corp.) for the acquisition and processing of 8,000 line km's of aeromagnetic and aerogravimetric data over Block XXI, onshore Peru. This survey will allow the Joint Venture partners to define more effectively the future 2D seismic acquisition areas and also assist in the delineation of attractive targets for exploration drilling.

The programme is expected to commence by end of January 2012 and to have final results available by March 2012.  This will allow the licence obligations for the block to be met before the deadline in April 2012.

Following this airborne survey it is expected that seismic data acquisition can be planned for the most attractive areas in 2012, with a well being drilled in 2013, subject to gaining the necessary permits.

Block XXI covers 303,000 hectares and is bordered by Olympic Oil and Gas' producing gas field on Block XIII.

Colombia Highlights:

Azar Block

Based on the 3D seismic acquired over the block a number of attractive prospects have been identified with the La Vega East and La Vega Sur prospects confirmed as drilling locations with similar geological structures.  The plan is to drill the La Vega East prospect in the near future, now that environmental permits have been obtained.  Permit conditions involve the temporary re-routing of certain local power lines and water courses.

Gold Oil has a 20% working interest in the Azar Block, but under an existing commercial arrangement has an obligation to fund only 10% of costs for the first well drilled.

Azar is located to the northeast of the Company's existing Nancy, Burdine and Maxine oil fields and is operated by Gran Tierra Energy, a company with considerable experience in the prolific Putumayo basin in southern Colombia.

Nancy Burdine Maxine Fields

The Nancy-1 well continues to produce at a rate of 250-350 bopd with zero watercut.  The crude is produced by artificial means using a downhole jet pump which provides for simplicity of operation in a relatively remote area.  However, the well suffers from sand influx into the well bore which impacts on the efficiency of the pump system leading to fluctuating production levels.

A workover programme on the Burdine field commenced in January 2011 with the rig being released at the end of April2011.  The intention was to re-enter three wells, Burdine -1, -4, and -5.  Burdine -1 and -5 were completed as oil producers and Burdine -4 as a water disposal well.  The Company is now in final discussions with contractors following the tendering of works for the new facilities and expects to have them installed by April 2012.  The workover on Burdine -5 was operationally successful and the well came on stream at a good initial rate of some 250 bopd.  However the well began to cut water and produce significant volumes of associated gas which impaired productivity significantly.  The well stabilised at around 75 bopd, which was somewhat less than expected. The Company is now exploring ways to improve the lift mechanism and productivity.

The Burdine -1 workover encountered problems due to the age of the existing completion equipment but has produced at good rates of around 250 bopd.

Following the investment in the Burdine workovers it was considered opportune to engage with Ecopetrol around an extension to the existing contract.  If obtained it would allow the company and its partners to develop further the potential in these fields. A Nancy- 2 development well is being considered alongside the negotiations to extend the production licence.

Financial results

The unaudited financial results for the six months to 31st October 2011 record an operating loss of £110,000 (31st October 2010 loss of £790,000). The loss per share was (0.02p) (31st October 2010 profit 0.14p). No dividend is being declared.

The increased revenue from Nancy Burdine is largely driven by the increase in oil price. The revenue arising from increased production from the Burdine workovers has been offset against long term production testing costs in accordance with accounting policy

Although administrative costs (net of foreign exchange movements) have reduced, once the effects of foreign exchange gains are stripped out, underlying administrative costs have increased compared to the same period last year.  These additional costs were incurred with regard to pursuing new business opportunities, heightening the corporate profile of the Company and Directors remuneration (not all Directors were in place during the comparable period last year),  I am aware of the need to keep costs to a sustainable level.

Conclusion

The Company has made good progress developing its assets, particularly in Block Z34 Peru, and its portfolio of assets remains attractive.  Work continues to commercialise Block Z34 as quickly as possible and to consider all ways to optimise this important asset.  In Colombia the Azar Block is a good prospect and the Company has been frustrated with the delays in gaining the necessary environmental permits. The imminent drilling of the La Vega East prospect is therefore an exciting time for the Company. The completion of the workovers on the Burdine wells is an important step towards enhancing the revenue and improving the cash flow for the Company.

I look forward to 2012 with a high degree of optimism and anticipate the achievement of key milestones for the Company.

For further information on the Company, visit www.goldoilplc.com or contact:

Gold Oil Plc - Tel: [phone]

Richard Mew - CEO

Seymour Pierce Ltd (Nomad and Joint Broker) - Tel:  [phone]

Jonathan Wright / Stewart Dickson (Corporate Finance)

Richard Redmayne / Jeremy Stephenson (Corporate Broking)

FirstEnergy Capital LLP (Joint Broker) - Tel: + 44 (0) 20 7448 0200

Hugh Sanderson / Travis Inlow

Buchanan (Financial PR) - Tel: [phone]

Tim Thompson/Ben Romney/Helen Chan

30 January 2012

Gold Oil plc
_____________________________________________________________________________________________

Consolidated Income Statement
for the six months ended 31 October 2011
		6 months to		6 months to		Year to
		31-Oct		31-Oct		30-Apr
		2011		2010		2011
	Note	Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Revenue		715		474		1,168
Cost of sales		(336)		(310)		(816)
Gross profit		379		164		352
Development expenditure written off		-		(32)		(39)
Administrative expenses (net of foreign exchange movements)	5	(483)		(907)		(1,947)
Other operating income		5		-		85
Finance cost		(11)		(15)		(39)
Operating loss		(110)		(790)		(1,588)
Finance income		20		5		7
Loss on ordinary activities before taxation		(90)		(785)		(1,581)
Income tax (expense)/benefit	6	(45)		(21)		2
Profit/(loss) on ordinary activities after taxation		(135)		(806)		(1,579)
Dividends		-		-		-
Profit/(loss) attributable to equity holders		(135)		(806)		(1,579)
Earnings/(loss) per share: basic	7	(0.02p)		(0.14p)		(0.27p)
Diluted	7	(0.02p)		(0.14p)		(0.27p)
The group's revenue and profit/(loss) arise from continuing operations.

Gold Oil plc

Consolidated Statement of Comprehensive Income
for the six months ended 31 October 2011
		6 months to		6 months to		Year to
		31-Oct		31-Oct		30-Apr
		2011		2010		2011
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Profit/(loss) for the period		(135)		(806)		(1,579)
Other comprehensive income
Currency  translation differences		274		6		(7)
Total comprehensive income for the period		139		(800)		(1,586)
Total comprehensive income attributable to :
- Owners of the company		139		(1,152)		(1,586)

Gold Oil plc

Consolidated Statement of Financial Position
as at 31 October 2011

Gold Oil plc

Consolidated Statement of Cash Flows
for the six months ended 31 October 2011
		6 months to		6 months to		Year to
		31-Oct		31-Oct		30-Apr
		2011		2010		2011
		Unaudited		Unaudited		Audited
	Notes	£'000		£'000		£'000
Operating activities	9	(232)		(237)		(124)
Investing activities
Return from investment and servicing of finance		20		5		7
Purchase of intangible assets		(2,058)		(856)		(1,349)
Purchase of tangible assets		(519)		(102)		(967)
		(2,557)		(953)		(2,309)
Financing activities
Proceeds from issue of share capital		-		1,108		11,211
Costs of share issue		(15)		-		-
Short term loan repayments		(610)		-		-
Net cash (outflow)/inflow		(3,414)		(82)		8,778
Cash and cash equivalents at the beginning of the period		10,484		1,706		1,706
Cash and cash equivalents at the end of the period		7,070		1,624		10,484
As at 31 October 2011, bank deposits included an amount of USD $2m, 30 April 2011 and 31 October 2010 amount was £1,200,000 that is being held as a guarantee in respect of a letter of credit and is not available for use until the Group fulfils certain licence commitment in Peru. This is not considered to be liquid cash and has therefore been excluded from the cash flow statement.

Gold Oil plc

Consolidated Statement of Changes in Equity
for the six months ended 31 October 2011
		6 months to		6 months to		Year to
		31-Oct		31-Oct		30-Apr
		2011		2010		2011
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Profit/(loss) for the period		(135)		(806)		(1,579)
Shares issued		29		1,108		14,592
Foreign exchange translation		274		6		(7)
Other reserve		-		-		(1,964)
		168		308		11,042
Opening shareholders' funds		18,891		7,849		7,849
Closing shareholders' funds		19,059		8,157		18,891

Notes to the Interim Financial Information

1. General Information

Gold Oil Plc is a company incorporated in England and Wales and quoted on the AIM Market of the London Stock Exchange. The registered office address is Finsgate, 5-7 Cranwood Street, London EC1V 9EE.

The principal activity of the Group is that of oil and gas exploration and production.

These financial statements are a condensed set of financial statements and are prepared in accordance with the requirements of IAS 34 and do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the Group's annual financial statements as at 30 April 2011. The financial statements for the half year ended 31 October 2011 are unaudited and do not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006.

Statutory accounts for the year ended 30 April 2011, prepared under IFRS, were approved by the Board of Directors on 20 September 2011 and delivered to the Registrar of Companies.

2. Basis of Preparation

These consolidated interim financial information have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and on the historical cost basis, using the accounting policies which are consistent with those set out in the Company's Annual Report and Accounts for the year ended 30 April 2011. This interim financial information for the six months to 31 October 2011, which complies with IAS 34 'Interim Financial Reporting', was approved by the Board on 30 January 2012.

3. Accounting Policies

Except as described below, the accounting policies applied are consistent with those of the annual

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