NAUT.L Regulatory News (NAUT)

25 May 2006 07:04

Global Energy Development PLC25 May 2006 Immediate Release 25 May 2006 GLOBAL ENERGY DEVELOPMENT PLC ACTIVITY PROGRAMME FOR 2006 Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), ispleased to provide an update on its scheduled activity throughout the remainderof 2006. Highlights * 2006 capital expenditure of up to $23 million funded by cash flow from production * Large increase in activity in 2006 with focus on new assets and emphasis on exploration * Expect to drill or spud up to eight wells in total in 2006 * Four or five seismic programmes scheduled to be carried out in the second half of 2006 Commenting on Global's scheduled activity for 2006, Stephen Voss, ManagingDirector of Global Energy Development PLC, said: "We have made excellent progress over the last year in adding high-potentialexploration assets to our legacy, producing portfolio and we are now progressingthem as rapidly as possible towards drilling. Scheduled activity throughout the remainder of 2006 includes seismic programmeson four or five of our exploration prospects and the drilling or spudding of upto seven more wells. We have already had a successful start to our 2006 drilling programme with thefirst well of the planned eight, Tilodiran 2 within the Colombian Rio Verdecontract, going to significantly increase our gross daily production when it isplaced on continuous production within the next few weeks. Five of the seven remaining scheduled wells are in the identified Primaverafield, formerly known as El Miedo, located within our Colombian Luna Llenacontract. They represent relatively low-cost and quick drilling due to theirshallowness. Negotiations for a rig are already advanced with the required rigmore readily available and not subject to such inflationary costs." Operations Drilling and Exploration The Company plans to drill or spud up to seven more wells in the Llanos regionof Colombia during the remainder of 2006. The Llanos region is subject to rainyseasons, and so delays to the drilling schedule may occur especially if thecurrent unfavourable weather conditions continue. Nevertheless negotiations forthe rigs for all these wells are far advanced. Due to the success of the first well drilled in 2006, the Tilodiran 2 welllocated within the Colombian Rio Verde contract, the Company hopes to commencerig mobilization to the next exploratory well on this contract area, Tilodiran3, late in the third quarter of 2006. In addition, as the Director's believe that the Tilodiran field is part of alarger trend to the north into the newly signed Colombian Los Sauces contractarea, the first exploratory well on the Los Sauces area is scheduled to bespudded late in the fourth quarter of 2006. The remaining five wells due to be drilled are located in the identifiedPrimavera field, formerly known as El Miedo, within the Colombian Luna Llenacontract area. These wells represent relatively low-cost and quick drilling dueto the shallowness of the wells and the required rig is more readily availableand not subject to such industry inflationary costs. Presently, it isanticipated the drilling rig will arrive in the field area early in the fourthquarter and the five wells completed and placed on long term production test bythe year end or very early 2007. The drilling operations in the Primavera fieldare based upon a delineation programme designed to define the limits of what theCompany feels is the northeast portion only of the Primavera field. It isexpected that the delineation drilling, together with new 2D seismic to beacquired in the next few months, will assist the Company's independent reserveengineers, Ryder Scott Company, LP ("Ryder Scott"), in estimating at least thepartial extent of the oil volumes in this area. The other seismic programmes to be carried out during the second half of 2006are focused on the Los Sauces contract area, the Colombian Caracoli contractarea, where the Company is currently reprocessing and mapping and aims to drillthe first well early in the second half of 2007, and the Bretana field withinthe Peruvian Block 95 contract area, where seismic will be acquired in thefourth quarter of 2006 weather permitting. Additionally, seismic may be acquiredthis year in Panama if the Garachine contract is signed prior to July 2006. Production As previously announced the Tilodiran 2 well should be placed on continuousproduction by mid to late June 2006, weather permitting, at a rate ofapproximately 1,100 boepd after which point the Company's gross daily productionshould be upwards of 2,000 bopd. The Company's other currently producing wells,located in the Colombian Los Hatos, Bolivar, Bocachico and Alcaravan contractareas, have exhibited stable or marginally improved production levels over thelast two months. For further information: Global Energy Development PLCCatherine Miles, director of Investor Relations +44 (0) 20 7763 7177www.globalenergyplc.com +44 (0) 7909918034 Notes to Editors: Global has been listed on the AIM Market of the London Stock Exchange sinceMarch 2002 (LSE-AIM: "GED"). The Company currently holds in excess of 5.2million acres through nine contracts in Colombia and Peru, an exclusiveTechnical Evaluation Agreement ("TEA") in Colombia and a concluded exclusive TEAin Panama. Global's portfolio comprises production, developmental drilling andworkover opportunities and several high-potential exploration projects. Ryder Scott, the Company's independent engineers, reported that as at 31December 2005, proved plus probable reserves ("2P reserves") net to Globaltotalled 17.5 million barrels of oil and proved plus probable plus possiblereserves ("3P reserves") net to Global totalled 67.5 million barrels of oil.Based upon an approximate Brent Price of $58 per barrel, this being the closingprice as at 31 December 2005, Future Net Revenues ("FNR") for the 2P reservesnet to Global totalled $621 million and FNR for the 3P reserves net to Globaltotalled approximately $2.8 billion. Proven and probable oil and gas reserves are estimated quantities ofcommercially producible hydrocarbons which the existing geological, geophysicaland engineering data show to be recoverable in future years from knownreservoirs. The proved reserves reported by Ryder Scott conform to thedefinition approved by the Society of Petroleum Engineers ("SPE") and the WorldPetroleum Congress ("WPC"). The probable and possible reserves reported by RyderScott conform to definitions of probable and possible reserves approved by theSPE/WPC using the deterministic methodology. This information is provided by RNS The company news service from the London Stock Exchange