Date: 5 Nov 2009

Gold Oil plc

Operational Update: Colombia

Gold Oil plc (’Gold’ or ‘the Company’)  is pleased  to announce   the following operational updates for its Azar, Nancy Burdine Maxine  and Rosa Blanca Blocks in Colombia.

Gold is pleased to  announce that at the  most recent Azar  operating committee meeting  (OCM) on  28 October,  the Operator,  Gran  Tierra Energy Company (GTEC), announced the preliminary results of the 50km2 3D survey acquired on the southern part of the block on which the  La Vega South & East prospects will be drilled Q2/Q3 2010 as soon as the relevant environment impact assessment  permits are granted. La  Vega East has resources  estimated by  GTEC of 3.25MMbbl  in the  T and  U sands (Gold’s share 0.6MMbbl). The similar La Vega South prospect  is estimated to have resources of 3.24MMbbl in both sands (Gold’s  share 0.6MMbbl). Both structures are very close together and are planned to be drilled ‘back to back’ in 2010.  GTEC has considerable  experience in the Putumayo  Basin, of  which these prospects  are very  typical, operating several blocks.

During the same  OCM the  partners decided to  acquire an  additional 75km2 of 3D seismic  over the La Florida  structure, which is in  the northern part of the  block and has had  51km of 2D seismic  recently acquired on it.  The La Florida prospect has the potential, estimated by GTEC, for 15-25 MMbbl of oil initially in place (STOIIP). A better
estimate will be made after the new 3D seismic survey, which will  be acquired in March/April 2010.

As announced  in the  Company’s Operational  Update announced  on  24 September, the  acquisition  of a  60  km 2D seismic  survey  in  the southern portion  of the  Rosa Blanca  Block, located in the prolific Middle  Magdalena   Basin,  started   three  weeks   ago  after   the environmental  permit  was  granted.   Local  consultation,  detailed topography mapping and  drilling of the  shot-holes for the  dynamite charges are well advanced. The first  seismic line has been shot  and according to the schedule the seismic acquisition will be finished by mid November  and processing  and preliminary  interpretation in  the first week of December.

Testing of the Burdine wells continues and B-1 has been in production on a long term  production test since October.   B-1 is producing  an average of  230  bopd of  light  crude with  320  bpd of  water.  The objective of the  long term test  is to get  more information on  the well to  optimize  the  work-over  programme for  B-1  and  B-5.  The work-over of B-4 needs the  approval of the Company’s partners.   B-5 has produced  60  bopd  on a  short  term  test and  a  work-over  to chemically remove probable formation  damage and increase  production is being planned.  Petrophysical  analysis of B-4 shows  unperforated oil reservoirs  that  will be  perforated  during the  work-over  and brought on stream.

The Company  expects that  the work-over  programme for  the  Burdine Field should increase production of the field to 1.500 bopd. (Net  to Gold 410 bopd)

Mark Pritchard, Chairman  of Gold Oil  said: ‘I am  pleased with  the excellent news on the Azar Block and happy to have reached  consensus with our  partners  to develop  the  Block as  quickly  as  possible, bearing in  mind  that  the  environmental  permitting  for  the  two projected wells is  likely to take  at least 6  month for  approval, once presented  to the  Ministry.  It would  be  of interest  to  all partners to  be  able to  drill  these two  wells  immediately  after prospect mapping has identified drilling locations but  unfortunately EIA permitting will not allow this.’

The technical  information contained  in this  announcement has  been reviewed and approved by Mike Burchell, B.Sc., 69, member of the  SPE and with over 47 years experience in the oil and gas business.

Notes for 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.

The Azar Block, which  is located to the  northeast of the  Company’s existing Nancy, Burdine and Maxine oil fields and immediately to  the east of the Guayoyaco Block in which the Juanambu discovery well  was drilled in  November  2007  with  a flow  rate  of  1,410  bopd.  The Guayoyaco Block is operated by Gran Tierra Energy (TSX: GTE), who  is
also the operator and 40% interest holder in the Azar Block.

The Licence for the Azar Block was granted by Colombia’s hydrocarbons agency (ANH) in October 2006 for an area of 51,630 Ha  (or 516.3km2). The term of the Licence  is for a period  of 24 years and includes  a royalty payable to the ANH  of between 8% and 25% depending upon  the level of production. The oil and gas terms in Colombia are  currently some of the most favourable in Latin America.

The Rosa Blanca Block covers an area of approximately 45,000 hectares and is surrounded by  the nearby oil producing fields  of Cristalina, Santa  Lucia, Tisquirania,  Totumal, Baturama  and the  South Bolivar Block.

The petroleum system within the Rosa Blanca Block has been  proven in nearby  oil  wells  and  fields which  reduces  the geological   risk significantly. Gold believes that the presence of fractured reservoir zones within the reservoir rock is  the main geological risk.  Gold’s clear objective is to find  another Buturama style oil  field  which, by analogy,  could give  reserves of  up to  30 MM  STB and   initial production rates of 1,200 BOPD of 35o API gravity oil per well.

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%.

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

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