LONDON (ShareCast) - 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

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