NAUT.L Regulatory News (NAUT)

Immediate Release 27 March 2013

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company" or "Global")

AUDITED FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012

Global Energy Development PLC, the Latin America focused petroleum exploitation, development and production company (AIM: GED) with operations in Colombia, is pleased to announce its audited final results for the year ended 31 December 2012.

2012 Highlights

§ Turnover increased to $44.0 million (2011: $43.1 million).

§ Oil prices increased 3% averaging $98 per barrel ("bbl") (2011: $95 per bbl).

·; Gross oil production decreased 5% to 492,000 bbls (2011: 519,000 bbls) due to certain down time of the Tilodiran 2 well.

·; Sales of oil volumes increased slightly at 454,943 bbls (2011: 444,657).

·; Gross profit decreased to $12.6 million (2011: $15.0 million) due primarily to the delay in the completion of the Rio Verde 2 water disposal well.

·; Profit from sale of Block 95, net of tax, of $810,000 (2011: Nil).

§ Tax charge of $3.7 million primarily relating to write-down of the value of the Company's deferred tax assets following enactment of Colombian Tax Law 1607 in December 2012.

·; Net loss of $2.12 million (2011: net income of $2.00 million) due primarily to higher water transportation costs and other operating expenses during 2012 along with the non-cash tax effect of Colombian Tax Law 1607 passed in December 2012.

Mikel Faulkner, Global's Chairman, indicated "The Company's 2013 focus is on bringing in a strategic partner to accelerate the development of its Middle Magdalena reserves and on continuing with the improvement of its strong cash flow from operations from its oil production in the Llanos Basin. This combination should hasten the realisation of greater value to the Company and its shareholders in 2013 and the future."

For further information please contact

Global Energy Development PLC

Buchanan (Financial PR)

Lauren Kettle

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 country of Colombia and comprises a base of production, developmental drilling and recompletion opportunities. The Company currently holds five operated contracts in Colombia.

Proven and probable oil and gas reserves are estimated quantities of commercially producible hydrocarbons which the existing geological, geophysical and engineering data show to be recoverable in future years from known reservoirs. The proved reserves reported by Ralph E. Davis, Inc., ("RED"), an independent petroleum engineering firm, conform to the definition approved by the Society of Petroleum Engineers ("SPE") and the World Petroleum Council ("WPC"). The probable and possible reserves reported by RED conform to definitions of probable and possible reserves approved by the SPE/WPC using the deterministic methodology.

The information contained within this announcement has been reviewed by RED. In addition, 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 28 years.

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this release and include, but are not limited to, statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial position, liquidity, prospects, growth, strategies and expectations of the industry. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the development of the markets and the industry in which the Group operates may differ materially from those described in, or suggested by, any forward-looking statements contained in this release. In addition, even if the development of the markets and the industry in which the Group operates are consistent with the forward-looking statements contained in this release, those developments may not be indicative of developments in subsequent periods. A number of factors could cause developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in law or regulation, currency fluctuations (including the US dollar), the Group's ability to recover its reserves or develop new reserves, changes in its business strategy, political and economic uncertainty. Save as required by law, the Company is under no obligation to update the information contained in this release.

Past performance cannot be relied on as a guide to future performance.

Chairman's Statement

Development of the Company's 2P reserves in its Bolivar and Bocachico Association Contract areas within the Middle Magdalena Valley in Colombia, South America remains the Company's top priority for 2013. During 2012, the Company elected to engage a financial advisor in connection with a farm-out or other business transaction involving the Company's Bolivar Association Contract ("Bolivar") in order to accelerate production and to better exploit Bolivar's large reserve base. This targeted increase in drilling activity mandates the deployment of additional and substantial technical expertise and operating man power to effectively undertake the management of this sizable shale oil development project. Interest has increased dramatically in shale oil generally throughout the entire international petroleum industry and specifically in the northern Middle Magdalena Valley Basin. The Company hopes to complete the partnering process in the second quarter of 2013 and is looking forward to working with an eventual partner selected to develop these significant oil assets.

The Company also demonstrated continued progress towards developing oil production from its Bocachico Association Contract through the testing efforts on the Torcaz 5 well. Although consistent oil production has not yet been achieved, the Company was able to demonstrate increased permeability of the reservoir formation through successful sanding with oil shows during the testing of Torcaz 5. The Company plans to address the challenge of moderating the sanding and enhancing oil production by modifying its completion approach in existing Torcaz wells during 2013.

2012 saw record revenue from oil production from the Company's contract areas located within the Llanos Basin of Colombia. Higher operating costs incurred were primarily a result of the water disposal and transportation costs from the Tilodiran field. While the Company was able to complete the existing Rio Verde 2 well during 2012 into a secondary recovery water injection well, final approval from the Colombian authorities to commence long-term water injection was not received until the fourth quarter of 2012. This delay led to increased operating costs during the majority of 2012. Following commencement of water injection at Rio Verde 2 in the fourth quarter of 2012, cost savings of approximately $400,000 per month began to be realised in late 2012 and continuing into 2013.

Lastly, 2012 saw the Company narrow its focus solely on its core assets within the country of Colombia through the sale of its remaining 40 per cent working interest of the Peruvian Block 95 Licence Contract for cash consideration of $5.4 million with $2 million received at closing and the remaining $3.4 million net proceeds received in February 2013 following the completion of the assignment from Perupetro, Peru's national agency for hydrocarbons.

The Company's 2013 focus is on bringing in a strategic partner to accelerate the development of its Middle Magdalena reserves and on continuing with the improvement of its strong cash flow from operations from its oil production in the Llanos Basin. This combination should hasten the realisation of greater value to the Company and its shareholders in 2013 and the future.

Mikel FaulknerChairman26 March 2013

Managing Director's Review of Operations

Operations

Llanos Basin Production:

In 2012, the Company anticipated higher gross production from its Llanos Basin properties due to strong production rates at the beginning of 2012 primarily from its Tilodiran wells (Tilodiran 2 and Tilodiran 3) within the Rio Verde Contract Area. Overall, gross oil production decreased by 5 per cent to 491,786 barrels ("bbl") in 2012 (2011: 519,653 bbls). The largest contributing factor to the shortfall in 2012 oil production was the downtime at the Tilodiran 2 well. Due to high levels of scale precipitation from Ubaque water previously intermingled with the Gacheta oil production in the Tilodiran 2 well, the electric submersible pump on Tilodiran 2 failed early in 2012 and failed twice again during the year due to Colombian national grid electrical system malfunctions. These factors required pump changes in the Tilodiran 2 well which resulted in downtime of approximately 140 days (38 per cent of the year) during 2012. Daily oil production from the Tilodiran 2 well averages between approximately 250 and 275 barrels of oil per day ("bopd"). The effect of these pump replacements during the year played a key role in the Company's understanding of the effect of produced Ubaque water chemistry on scaling and other factors that were causing poor pump performance. All Ubaque formation production has been shut-off in the Tilodiran 2 well, and this should benefit long term production performance of the Middle Gacheta reservoir in the Tilodiran field.

The Tilodiran 3 well is currently flowing naturally without requirement of lifting at rates between 700-800 bopd. In late 2012, the Company moved ahead to recomplete the existing Tilodiran 1 well in the Middle Gacheta. The well was previously recompleted in 2005 in the Massive Ubaque with preliminary successful results, but the water cut from the Ubaque eventually increased to 100%. The Tilodiran 1 well was completed in early 2013 and has been placed on production with an initial producing rate of 40 bopd.

In regards to improving the profitability of our Llanos Basin operations, a key achievement for the Company was the successful recompletion of the existing Rio Verde 2 well into a secondary water injection well in the fourth quarter of 2012. The conversion was completed in July 2012 and short-term test results were submitted to the Colombian Ministry of Mines and Energy. Final approval for long-term injection was not received until October 2012. Following commencement of water injection in October 2012, water disposal and transportation costs have since decreased by approximately $400,000 per month. Water disposal costs previously represented the largest component of the Company's operating costs prior to the conversion of the Rio Verde 2 well. The Company plans to continue other operational improvements in 2013 such as reducing fuel costs by converting generators at the Tilodiran field from diesel to produced natural gas, completing the saltwater transfer line from the Tilodiran field to the Rio Verde 2 water injection well, and eliminating high road maintenance costs as a result of decreased trucking operations.

Middle Magdalena Properties:

Development plans for the Company's Bolivar field were delayed in 2012 while the Company engaged a financial advisor to pursue a farm-out of the Bolivar Contract Area. The Company believes that bringing in a strategic partner with technical expertise and financial resources will benefit and accelerate the overall pace of development of this reserve-rich property in the Middle Magdalena field in Colombia. This process is presently continuing and is hoped to be completed during the second quarter of 2013.

Bringing on increased production from our Torcaz field within the Bocachico Contract Area also remains a priority for the Company in 2013. As part of this strategy, the Company installed several types of abrasive-tolerant pumps in the existing Torcaz 5 well within the Bocachico Contract area in 2012 to re-establish oil (and sand) production and lift from the wellbore. During the testing phase of the pumps, successful sanding and oil shows were initiated. However, oil shows were interrupted due to periodic significant sand movement into the wellbore, which eventually overwhelmed the capacity of the pumps. As a result it became evident that a modified approach to partially apply conventional sanding restraints should be utilised to moderate initial heavy sand production and enhance oil production. The Company has ordered a newly-designed pump which should be received in the second quarter of 2013 and plans to commence recompletion operations on its straight-hole Torcaz 3 well upon delivery.

Although the Torcaz 5 was considered an initial setback, this was the first attempt at implementing such abrasives-tolerant technology at the Torcaz field and it is not surprising to see some short-term calibration and engineering issues at this early stage. The initial results are nevertheless encouraging and the Company believes that this process, in a modified form, can help to substantially accelerate production of the Company's reserves in the Torcaz field. The delay in accelerating the development plans at the Torcaz field had a tangible impact on the Company's year-end 2012 reserves report resulting in a loss of significant 2P reserves due to end of contract life effects. Therefore, it is critical for the Company to accelerate production efforts in the Torcaz field or face continued loss of reserves as the contract term draws closer.

Financials

During 2012, the Company recorded increased turnover of $44.0 million, 2 per cent higher than the prior year (2011: $43.1 million) due to slightly higher realised average oil pricing of $98 per bbl during the year (2011: $95 per bbl). Net sales volumes remained steady with 454,943 bbls sold in 2012 (2011: 444,657 bbls) as the Company was able to liquidate certain crude oil inventory volumes on hand.

Cost of Sales increased by 12 per cent to $31.5 million during the year (2011: $28.1 million). The largest component of the Company's lease operating expenses of $14.3 million during 2012 was water transportation and disposal costs which totaled $3.9 million. The delayed final approval for the long-term water injection from the Colombian authorities until fourth quarter of 2012 led to overall higher water costs during the year than originally projected. Also contributing to the increased Cost of Sales were the derecognised costs of $2.8 million during 2012 (2011: $1.4 million) primarily related to the damaged pumps at the Tilodiran 2 well and the Torcaz 5 well. As a slight benefit, the Company experienced a 16 per cent decline in oil transportation costs during 2012 to $5.9 million (2011: $7.0 million) due to the ability to transport its Palo Blanco oil production (representing approximately 12 per cent of the Company's net production) via pipeline in lieu of trucking.

Based on overall increased Cost of Sales, gross profit was $12.6 million, a decrease of $2.4 million over the prior year. Administrative costs (including share-based expense and exchange rate costs) increased to $7.9 million during 2012 against $6.6 million in the prior year due primarily to the non-cash increase in share-based expense, higher foreign exchange expense and additional personnel costs. In an effort to diminish future costs, the Company reduced personnel and has provided for non-routine severance costs in administrative costs in 2012. During 2012, the Company recorded a discount impairment in Other Expense of $1.1 million against a long-term receivable from one partner of an association contract in Colombia.

Profit before taxation was $760,000 (2011: $5.9 million). Due to the issuance of Colombian Tax Law 1607 approved by Congress in December 2012, the Company recorded a one-time, non-cash charge of $3.6 million in tax expense to reduce the valuation of the Company's deferred tax assets. The Tax Law included a provision which lowered the income tax from 33 per cent to 25 per cent but implemented a new income tax called a "CREE" tax of 9 per cent (decreasing to 8 per cent in 2016) which is not eligible for tax loss carry forwards. Otherwise, the long-term tax effect of the Tax Law is not expected to have a future material financial impact to the Company. The loss from continuing operations, net of tax, was $2.9 million (2011: $2.0 million profit). Profit from the Company's discontinued operations in Peru, net of tax, was $810,000, therefore, net loss for 2012 was $2.12 million (2011: $2.0 million profit).

The Company generated cash flow from operations of $9.3 million (2011: $14.2 million) and expended $ 8.7 million on capital projects primarily related to the conversion of the Rio Verde 2 into a secondary recovery injection well, the implementation of abrasives tolerant technology in its Torcaz 5 well and the efforts to eliminate scale precipitation from Ubaque formation production and improve overall production performance in the Tilodiran 2 well. The Company repaid and fully extinguished the remaining convertible notes outstanding of $9.5 million with the securing of new financing of $12 million. Proceeds of $2.0 million were also received in 2012 from the sale of the Company's remaining working interest in the Peruvian Block 95 Contract.

In March 2013, the Group renegotiated its current debt obligations totaling $17 million with HKN, Inc. to restructure into one new loan agreement with amortising payments due quarterly through 15 June 2015 at a slightly increased interest charge of 12.75 per cent per annum, payable quarterly in arrears. This restructuring permits the Company to repay its debt obligations through current cash flow from operations while allowing additional capacity for discretionary capital expenditures to develop its significant reserve base.

Stephen VossManaging Director26 March 2013

Oil and Gas Reserves Information (unaudited)As at 31 December 2012

The reserve estimates shown in this report were developed by Ralph E. Davis Associates, Inc., an independent petroleum engineering firm, and are based on the joint reserve and resource definitions of the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers consistent with UK reporting purposes. In 2012, the Company also completed an additional reserve report reflecting the requirements of Canadian Form 51-101. Proved and probable reserve estimates are based on a number of underlying assumptions including oil prices, future costs, oil in place and reservoir performance, which are inherently uncertain. Management uses established industry techniques to generate its estimates and regularly references its estimates against those of joint venture partners or external consultants. However, the amount of reserves that will ultimately be recovered from any field cannot be known with certainty until the end of the field's life.

All reserves are in the South America production and development area.

Estimated net proved and probable reserves of crude oil

1 The overall decrease in reserve volumes is due primarily to the sale of the Company's interest in Block 95 in Peru, accelerated reversionary interest, end of contract life effects and minor field revision. Further delays in the development activities within the Bolivar and Bocachico Contracts Areas will result in future losses of 2P reserves due to end of contract life effects.

PRIMARY FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Incomefor the year ended 31 December 2012

Consolidated Statement of Changes in Equity

Consolidated Statement of Financial Positionas at 31 December 2012

Consolidated Statement of Cash Flowsfor the year ended 31 December 2012

ABRIDGED NOTES TO THE PRIMARY FINANCIAL STATEMENTS

For the twelve months ended 31 December 2012

1. Accounting Policies

Basis of preparation

The financial statements of the Group for the twelve months ended 31 December 2012 have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by European Union.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2012 or 2011 as defined by section 435 of the Companies Act 2006 but is derived from those accounts. Statutory accounts for 2011 have been delivered to the registrar of companies, and those for 2012 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, and (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts.

2. Earnings per share (EPS)

Basic earnings per share amounts are calculated by dividing the profit/(loss) for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share are calculated by dividing the profit/ (loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding at the end of the year, plus the weighted average number of shares that would be issued on the conversion of dilutive potential ordinary shares into ordinary shares. The calculation of the dilutive potential ordinary shares related to employee and Director share option plans includes only those options with exercise prices below the average share trading price for each period.

The calculation of the diluted EPS assumes all criteria giving rise to the dilution of the EPS are achieved and all outstanding share options with exercise prices lower than the average period share price are exercised. During the period ended 31 December 2012, the Group reported a loss. Therefore, because the effect of the potentially dilutive shares related to outstanding share options would be anti-dilutive, a separate diluted loss per share has not been reported because it is deemed to equal the basic loss per share.

3. Income tax

The Group is subject to UK and Colombian taxation.

UK taxation

The Group does not expect to be liable for UK corporation tax in the foreseeable future because, as of the date of the last UK tax return, the Group had trading losses carried forward of $31.1 million as at 31 December 2012 and $31.0 million as at 31 December 2011 and these are expected to increase in the future.

Colombian taxation

The Group pays taxes in Colombia through the branch office of its wholly-owned subsidiary CEDCo. The Colombian corporation tax in 2012 and 2011 was calculated as the higher of net income tax or presumptive income tax which was determined as follows:

·; Presumptive income tax. An alternative minimum tax calculated on the prior year gross equity less liabilities at a rate of 3 per cent to determine the presumptive income. A rate of 33 per cent is applied to the presumptive income to arrive at the tax obligation; or

·; Net income tax. Calculated at a rate of 33 per cent taking into account revenues minus costs, and standard deductions.

In 2012 and 2011, CEDCo paid its Income tax based on Presumptive Income Tax.

Colombian Tax Law 1607

On 26 December 2012, the Colombian Congress passed a tax law which reduced the corporate income tax rate applicable to Colombian entities and branches of non-Colombian companies from 33 per cent to 25 per cent beginning 1 January 2013. However, this rate reduction is effectively offset by a new income tax, known as "CREE Tax", with a tax rate of 9 per cent from 2013 through 2015, and 8 per cent thereafter. The CREE tax works as an income tax except for certain limitations on the ability to claim costs and expenses. Tax loss carryforwards are not eligible to offset the CREE taxable amount. Lastly, the CREE's taxable income amount may not be less than three per cent of the taxpayer's net equity as of 31 December of the preceding taxable year. The Company will calculate its current tax expense beginning 2013 based upon Tax Law 1607.

Additionally, the Group pays an Equity Tax calculated using a taxable base of the Net Equity as at 1 January 2011 at a rate of 6 per cent. The payment of the tax is over four years with payments made twice per year.

The major components of income tax expense for the periods ended 31 December 2012 and 2011 are:

Consolidated statement of comprehensive income:

Taxation reconciliation

The charge for the year can be reconciled to the profit per the income statement:

4. Deferred tax

The gross movement in net deferred tax liabilities are reported as follows:

The Group offsets deferred tax assets and liabilities if, and only if, it has a legally enforceable right to offset current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to corporation taxes levied by the same tax authority. Deferred tax assets and liabilities listed below are related to corporation taxes levied by the Colombian tax authority with jurisdiction over CEDCo.

Temporary differences between the tax base and carrying values arise in relation to the effect of inflation adjustments, differences in exchange rate of non-monetary assets, differences between tax and accounting depreciation and the adjustment and use of tax losses generated in 2008 and 2010 that could be compensated with future profits with no due date.

The movement in deferred income tax assets and liabilities during the year is as follows:

The reduction in deferred tax assets during 2012 is primarily due to the new 2012 Colombian Tax Law 1607 which reduced the corporate income tax rate applicable to Colombian entities and branches of non-Colombian companies from 33 per cent to 25 per cent beginning 1 January 2013 and established a new CREE tax with a tax rate of 9 per cent from 2013 through 2015, and 8 per cent thereafter. In 2012, the Group had to write-down the value of its deferred tax assets because tax loss carryforwards are not eligible to offset the CREE taxable amount. Therefore, accumulated tax losses of $40 million will now be recoverable at 25 per cent rather than the prior year amount of 33 per cent.

5. Borrowings

The short-term loans payable are represented as follows:

·; Fixed Rate Note Payable with HKN, Inc. - $12 million.

On 31 January 2012, the Group closed a Fixed Rate Note Payable with HKN, Inc. for the principal amount of $12 million (the "Note Payable"). The Note Payable is not convertible into shares. The Note Payable is subject to an interest charge of 12.5 per cent per annum, payable quarterly in arrears, with the principal amount being repayable in full on 30 September 2013. The Note Payable is currently unsecured, but HKN can require the Group to provide adequate collateral security in the event of a material adverse effect. The Group also paid to HKN a 1.75 per cent transaction fee of $210,000. The Group used these proceeds to redeem and extinguish the remaining convertible notes during 2012.

·; Senior Secured Note Payable in HKN, Inc. - $5 million.

On 30 August 2012, the Group, as borrower, signed an amendment to the Senior Secured Note Payable entered into with HKN, as lender, on 14 September 2010. This loan amendment extended the maturity date of the underlying repayment obligation from September 2012 to April 2013. In exchange for this extension, the Group agreed to increase the interest rate from 10.5 per cent per annum to 12.5 per cent per annum and to pay a 1 per cent transaction fee of $50,000.

6. Post reporting date events

In March 2013, the Group completed the restructuring of the notes payable to HKN of $5 million and $12 million, respectively, which were both due and payable in 2013 into one new note agreement (the "Amortizing Note Payable") for the combined principal amount of $17 million. The Amortising Note Payable is not convertible into shares and is subject to an interest charge of 12.75 per cent per annum, payable quarterly in arrears, with the following principal repayment amounts and dates:

·; $500,000 - due on 31 March 2013

·; $1.5 million - due quarterly beginning 30 June 2013 through 31 March 2015

·; $4.5 million - due on 15 June 2015

The Amortising Note Payable is currently unsecured, but HKN can require the Group to provide adequate collateral security in the event of a material adverse effect. The Group also paid to HKN a 2.0 per cent transaction fee of $340,000.