Further to an operational update announcement made on 8 July 2008, Gold is pleased to announce that on the Azar Block, in which the Company has an interest of 18.4% NRI, the operator has now completed perforating and testing the N Sand zone in Palmera-1.
In 1996 the State Oil Company abandoned the well without testing the N sand. Following re-entry operations in Palmera-1, the well was tested and on natural flow the well flowed heavy oil, circa 15oAPI, at an average rate of 45 barrels of oil per day ('bopd') over a period of 32 hours. The operator has completed the well as a potential producer on the N Sand.
The Company also announces that the oil has been sent for laboratory analysis, and the pressure data is being interpreted. The rig has moved off location.