8 Jun 2011 07:00
Immediate Release 8 June 2011
GLOBAL ENERGY DEVELOPMENT PLC
("Global", the "Company" or the "Group")
100% INCREASE IN PRODUCTION UPLIFT
SUCCESSFUL WORKOVER TEST RESULTS FOR TILODIRAN 2 & 3 WELLS
Global Energy Development PLC, the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), which operates in Colombia through its wholly-owned subsidiary Colombia Energy and Development Company, is pleased to announce significant uplift in its oil production as a result of a successful workover programme of its Tilodiran 2 and 3 wells within the Colombian Rio Verde contract. Prior to the workover programme, during the first four months of 2011, the Company averaged total gross oil production of approximately 1,100 barrels of oil per day ("BOPD") from all of its producing properties. Subsequent to the workover programme, total gross oil production has reached sustainable levels of approximately 2,200 BOPD. The Company has installed additional temporary surface equipment and is currently designing the expansion of permanent surface facilities in order to handle the increased production volumes within the Rio Verde field area. Following the workover programme, the combined production tests of both wells stabilized at a gross lifted oil rate of approximately 1,800 BOPD with oil gravities ranging from 15.3 to 16.2 degrees API. The workover programme targeted various un-perforated productive intervals in the middle to lower Cretaceous formations.
Steve Voss, Managing Director, commented: "The workover programme completed on the Tilodiran 2 and 3 wells within the Rio Verde contract area demonstrates the Company's continued commitment to accelerate the development of its proved reserves. Drawdown pressure of the Tilodiran wells is less than 10% of reservoir pressure indicating additional fluid deliverability potential. Given the current oil pricing environment, we believe these workovers are instrumental in our steps to advance the realisation of cash-flow and enhanced value for our shareholders."
Global Energy Development PLC
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Buchanan Communications
Tim Thompson | +44 (0)20 7466 5126 |
Ben Romney | +44 (0)20 7466 5132 |
Notes to Editors:
The Company's shares have been traded on AIM, a market operated by the London Stock Exchange, since March 2002 (AIM: GED). The Company's balanced portfolio includes the countries of Colombia and Peru and comprises a base of production, developmental drilling and workover opportunities and several exploration projects. The Company currently holds six contracts: five in Colombia and one in Peru.
The information contained within this announcement has been reviewed by Mr. Stephen Voss, a Director of the Company, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies which outlines standards of disclosure for natural resource projects. Mr. Voss is a Registered Professional Engineer in Texas and has been a Member of SPE for 27 years,