Offshore staff

Plectrum and joint venture partner, Gold Oil Plc, have been invited to start negotiations with Perupetro S.A. on the details of an exploration license 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 June 8, 2006 Plectrum announced that it had agreed to form a joint venture with Gold in respect to block Z-34. This converts Gold's existing agreement into a 30-year exploration and development license.

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

7/10/06