NAUT.L Regulatory News (NAUT)

11 Apr 2005 07:00

Global Energy Development PLC11 April 2005 Immediate Release 11 April 2005 GLOBAL ENERGY DEVELOPMENT PLC NEW PERUVIAN CONTRACT OFFICIALLY EXECUTED AND EFFECTIVE EXPLORATION AND EXPLOITATION CONTRACT FOR THE BLOCK 95 AREA Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), announcesthat as previously indicated the new License Contract ("Contract") betweenGlobal and Perupetro S.A. ("Perupetro"), the national oil company of Peru, forthe Exploration and Exploitation of Hydrocarbons in the Block 95 Area located inthe Maranon Basin of Northeastern Peru has now been officially executed and iseffective. Global owns a 100% working interest in the Contract subject only to an initial5% royalty, which equals the lowest payable by the Company in its history. Thesize of the royalty is to be determined by future production levels. TheContract duration is approximately 7 years for the initial exploration phasesand 23 years for the exploitation phase. The Contract assigns Global exclusive exploration and production rights toapproximately 1,275,000 acres. Terms of the Contract require Global duringPhase 1 to complete within 12 months environmental impact studies and plans forthe drilling of a well in the Bretana field located in Block 95. If Global elects to enter Phase 2 of the Contract, the Company must acquireapproximately 4800 square kilometres of micro-magnetic geophysical data in andaround the Bretana field and elsewhere throughout Block 95. Phase 2 has a timeperiod of 12 months. Should the Company elect to enter Phase 3 it will berequired to drill one exploratory well within 24 months. Phase 4 of theexploration period has a duration of 12 months and requires the acquisition of75 square kilometres of 3 dimensional seismic while Phases 5 and 6 both have aduration of 12 months and require the drilling of one exploratory well perPhase. Global has the option to proceed or terminate the Contract aftercompleting each of the 6 Phases. Global currently expects to drill its first well under this Contract in theidentified Bretana field in late 2006 or early 2007 and follow this with anexploratory well elsewhere in the Contract area in late 2008. For further information: Global Energy Development PLC +44 (0) 20 7808 5550Catherine Miles, director of investor relations +44 (0)7909918034 www.globalenergyplc.com Notes to Editors: Global holds exclusive contracts and rights to explore for and / or produce oiland gas from a geographically diversified portfolio of prospective acreage inColombia, Panama and Peru. This information is provided by RNS The company news service from the London Stock Exchange