15 Jul 2010 07:00
| Immediate Release | 15 July 2010 |
GLOBAL ENERGY DEVELOPMENT PLC
(the 'Company')
OPERATIONS UPDATE
Global Energy Development PLC, the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), intends announcing interim results for the six months ended 30 June 2010 on 16 September 2010 and ahead of these results is pleased to provide an update.
In line with expectations, the Company's base of production continues to show moderate decline rates with production for the period of 183,660 barrels of oil (net to the Company) against 199,403 barrels for the same period in the prior year.
The Tilodiran field within the Colombian Rio Verde contract accounted for over half of the Company's production during the period and it is now the focus of the Company's drilling activity for the next three wells. This represents a modest change to the previously announced Three Year Plan (the "Plan"), whereby one Tilodiran well will be substituted for the Rio Verde 3 well in light of the recent Rio Verde 2 well result. All other activities detailed in the Plan remain unchanged from those previously announced.
The impact of the Rio Verde 2 well result on the Company's reserves is estimated at a loss of 0.9 million BOE probable reserves (from the Company's total proved plus probable ("2P") reserves of 147.1 million BOE) and 3.1 million BOE probable plus possible reserves (from the Company's total proved plus probable plus possible ("3P") reserves of 272.9 million BOE).
The next well to be drilled in the Plan, the Tilodiran 4 well, is contractually required and classified as a proved undeveloped well. It will be located within the Tilodiran field near to the producing Tilodiran 2 and 3 wells, with the exact location yet to be determined.
The Company is currently negotiating the terms of the rig contract for the Tilodiran 4 well, which it expects to sign shortly, with rig mobilisation expected to commence in Autumn 2010, with the well drilled, completed and tested prior to 31 December 2010. The well has a proposed total depth of approximately 12,500 feet and will target the Gacheta formation (producing in the Tilodiran 2 and 3 wells) and the Ubaque formation (producing in the Tilodiran 3 well).
The Company also announces that it has recently agreed a line of credit for US$3.3 million with the Colombian arm of an international bank and is able to use this facility at its discretion.
Commenting, Stephen Voss, Vice Chairman, said:
"Whilst the Company had a disappointing start to its Three Year Plan, the Company is now focused on the next well within the Plan. The Company expects to sign a rig contract for this well shortly and commence drilling related activities."
For further information:
Global Energy Development PLC
| Catherine Miles, Company Secretary | +44 (0)20 3178 5156 |
| www.globalenergyplc.com | +44 (0)7909918034 |
Matrix Corporate Capital LLP
| Louis Castro | +44 (0)20 3206 7000 |
| Tim Graham |
|
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.