3 Feb 2010 07:00
| For Immediate Release | 3 February 2010 |
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company")
RESERVE REPORT
Global Energy Development PLC, the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), is pleased to announce details of its new reserve report dated 31 December 2009, which has been produced by the independent petroleum engineers Ralph E. Davis Associates, Inc ("RED").
RED reported that proved plus probable ("2P") reserves net to the Company totalled 147.1 million barrels of oil equivalent ("BOE"), an increase on 2008 (as at 31 December 2008: 131.0 million BOE). Within this, the proved reserves were slightly down at 60.8 million BOE and the probable reserves up at 86.3 million BOE due predominately to revised porosity / drainage area parameters and delayed Ecopetrol back-in respectively. Proved plus probable plus possible ("3P") reserves net to the Company also increased and totalled 272.9 million BOE (as at 31 December 2008: 254.6 million BOE).
The reserve report used a West Texas Intermediate ("WTI") price of $79.36, this being the closing price at 31 December 2009 (2008: $44.60). Based upon this starting price, the Net Present Value at a 10% discount ("NPV10") of the proved reserves was $2.0 billion (2008: $1.0 billion). The NPV10 of the 2P reserves totalled $5.0 billion (2008: $1.5 billion) and the NPV10 of the 3P reserves totalled $8.9 billion (2008: $2.3 billion).
For further information:
Global Energy Development PLC
| Catherine Miles, Company Secretary | +44 (0)20 7228 4266 |
| www.globalenergyplc.com | +44 (0)7909918034 |
Matrix Corporate Capital LLP
| Alastair Stratton | +44 (0)20 3206 7204 |
| Tim Graham | +44 (0)20 3206 7206 |
Notes to Editors:
The Company's shares have been traded on AIM, a market operated by the London Stock Exchange, since March 2002 (LSE-AIM: "GED"). The Company's balanced portfolio covers the countries of Colombia, Peru and Panama and comprises a base of production, developmental drilling and workover opportunities and several high-potential exploration projects. The Company currently holds seven contracts: five in Colombia; one in Peru; and one in Panama.
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 RED 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 26 years.