NAUT.L Regulatory News (NAUT)

12 May 2005 07:01

Global Energy Development PLC12 May 2005 Immediate Release 12 May 2005 GLOBAL ENERGY DEVELOPMENT PLC ACCELERATION OF EXPLORATION PROGRAMME WITHIN PERUVIAN CONTRACT Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), ispleased to announce that it has accelerated certain work obligations requiredunder its Licence contract for the Exploration and Exploitation of Hydrocarbonsin the Block 95 Area (the "Contract") located in the Maranon Basin ofNortheastern Peru. Under the terms of the Contract, which became effective last month, Global isrequired to acquire approximately 4800 square kilometres of micro-magneticgeophysical data in and around the identified Bretana field located in Block 95and elsewhere throughout Block 95 during Phase 2 which commences 12 months fromthe effective date, namely April 2006. Global has already executed a contract with Fugro Airborne Surveys, a leadingprovider of airborne geophysical services, to undertake an aeromagnetic surveyon the Contract area with activities expected to commence within the next coupleof months. Airborne geophysics has been utilized in petroleum exploration for many yearswith aeromagnetic surveys being the most widely used component. Aeromagneticsurveys provide a fast, low-cost method of structurally mapping large areas.Magnetometers towed by either an airplane or helicopter measure the intensity ofthe Earth's magnetic field over a selected area. Differences between actualmeasurements and theoretical values indicate anomalies in the magnetic fieldwhich represents changes in rock type or thickness. Entire basins can becharacterized and mapped with recent advances in computer technology meaningeven subtle geological effects can now be detected. Aeromagnetic surveys can beused to supplement more sparsely distributed seismic data and provide furtherguidance on where exploration efforts should be focused to achieve optimumresults. In addition to commencing Phase 2 early, Global anticipates acquiring above the4800 square kilometres of micro-magnetic geophysical data specified by theContract. Global owns a 100% working interest in the Contract, which assigns Globalexclusive exploration and production rights to approximately 1,275,000 acres,subject only to an initial 5% royalty. The size of the royalty is to bedetermined by future production levels. The Contract duration is approximately7 years for the initial exploration phases and 23 years for the exploitationphase. Global currently anticipates drilling 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. Commenting on acceleration of work under the Peruvian Contract, Stephen Voss,Managing Director of Global said: "Micro-magnetic geophysical data and the map products produced are an essentialcomponent of any exploration programme that must evaluate a large number ofprospective geologic opportunities. Block 95 offers a number of opportunitieswhich we have identified over the last three years and this early acquisition ofdata will enable us to tightly tailor our future seismic acquisition programmeto focus on the highest graded potential prospects thereby increasing thechanges of a successful drilling programme. Through currently accelerating ourwork obligations beyond that which is required under the Contract we hope toadvance quickly to the drilling of our first well in Block 95. For further information: Global Energy Development PLC +44 (0) 20 7808 5550Catherine Miles, director of investor relations +44 (0)7909918034www.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