Gold Oil advances on offshore Peru farm-out deal

Gold Oil, the AIM-listed oil and gas exploration and production company, has farmed out 80 per cent of its interest in the in the area known as block Z-34 in offshore Peru, to Union Oil & Gas Group.

Gold Oil, the AIM-listed oil and gas exploration and production company, has farmed out 80 per cent of its interest in the in the area known as block Z-34 in offshore Peru, to Union Oil & Gas Group.

Gold Oil will be carried in the three remaining exploration phases and keep a 20% interest.

The company reported that it would receive a total of $6.0m for the farm-out of which it would receive $4.0m by selling Plectrum Petroleum.

Plectrum is 100% owned by Gold Oil and has a 50% participation in Block Z-34.

Gold Oil said it would receive the remaining $2.0m when Union Oil & Gas had been qualified by Perupetro for the additional 30% participation interest in Z-34.

Union Oil & Gas invests in oil and gas exploration and production in Latin America, with a focus on Colombia, Paraguay, Peru and Uruguay.

It is a portfolio company of Union Group, a privately-owned firm which holds strategic interests in businesses spanning the agriculture, energy, forestry, infrastructure, minerals, oil and gas and real estate sectors in Latin America.

Gold Oil's share price was up 9.38% to 2.10p at 09:20 on Tuesday.

MF

Recommended

Should you buy Vodafone shares, or steer clear?
Share tips

Should you buy Vodafone shares, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargrea…
17 May 2022
Melrose Industries: a British manufacturer that is well-placed for recovery
Share tips

Melrose Industries: a British manufacturer that is well-placed for recovery

Melrose, the aerospace and automotive manufacturer, has been hit by the pandemic, but the shares are unduly cheap says David J Stevenson.
17 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
16 May 2022
Britain’s ten most-hated shares – w/e 13 May
Stocks and shares

Britain’s ten most-hated shares – w/e 13 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
16 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
High inflation will fade – here’s why
Inflation

High inflation will fade – here’s why

Many people expect high inflation to persist for a long time. But that might not be true, says Max King. Inflation may fall faster than expected – and…
13 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022