RNS Number:9458F
Plectrum Petroleum PLC
10 July 2006


For immediate release: 10 July 2006

Plectrum Petroleum Plc ("Plectrum", "The Company", or "The Group")


 Plectrum and Gold Oil invited to enter final negotiations for an Exploration &
            Exploitation Contract covering Block Z-34, Offshore Peru

Plectrum is pleased to announce that the Company, together with its AIM listed
joint venture partner, Gold Oil Plc (Gold), has been invited to start exclusive
negotiations with Perupetro S.A. on the details of an Exploration Licence
covering Block Z-34, offshore Peru. This follows formal notification of Gold as
an approved offshore operator and Plectrum as an approved contractor. It is
expected that the contract will be signed and approved by Perupetro within
weeks, with formal approval by the Minister of Energy and Mines sometime later.

On 8 June 2006 Plectrum announced that it had agreed to form a joint venture
with Gold in respect of Block Z-34, jointly giving notice to convert Gold's
existing Promotion Agreement into a 30 year Exploration & Exploitation Licence.
Final completion of the transaction was subject to the qualification of both
companies as approved contractors and the negotiation and approval of the
Exploration Licence terms by the Peruvian authorities.

Mike Evans, Plectrum's Chief Operating Officer, commented:

"This is excellent news for Plectrum in our new joint venture with Gold. I look
forward to speedy negotiation of the contract terms so that we can become
operationally active as soon as possible."

For further information, please contact:

Plectrum Petroleum Plc                                        Tel:01330 826 710
Mike Whyatt, Executive Chairman
Mike Evans, Chief Operating Officer
www.plectrum.co.uk

Corporate Synergy                                             Tel:020 7448 4400
Oliver Cairns
David Seal

Aquila Financial Ltd                                          Tel:020 7202 2600
Peter Reilly
Vivienne Macey
www.aquila-financial.com


Notes to editors

Block Z-34 sits in the prolific Talara Basin which has produced to date in
excess of 1.7 billion barrels of oil and 340 billion cubic feet of gas(1). The
3,713 km(2) block (equivalent to 14 North Sea Blocks) sits adjacent to existing
producing concessions in water depths of 100-3000m, yet has a sparse existing
data set of just 500km 2D seismic. The initial work programme will be to acquire
a conventional modern 2D seismic grid and enhance these data with Electro
Magnetic (EM) studies.

Plectrum Petroleum Plc is an AIM listed exploration and production company.
Plectrum's strategy is to seek out offshore exploration activities around the
globe that can be significantly de-risked before drilling by the application of
innovative technologies such as controlled source electromagnetic (CSEM)
imaging.

Since incorporation, Plectrum has focused on researching and quantifying a wide
range of acquisitions and establishing the Company as an industry player. A
number of applications have been made, and are in progress, for rights to
exploration acreage around the world including in the UK, Latin America and
Australia. In June 2006 Plectrum announced it had conditionally acquired a 50%
interest and operatorship of the Nabeul Block, Offshore Tunisia.

Note 1: Higley D (2004), The Talara Basin Province of Northwestern Peru:
Cretaceous-TertiaryTotal Petroleum System: U.S. Dept. of the Interior, U.S.
Geological Survey Bulletin 2206-A




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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