NAUT.L Regulatory News (NAUT)

16 Nov 2006 07:00

Global Energy Development PLC16 November 2006 For Immediate Release 16 November 2006 GLOBAL ENERGY DEVELOPMENT PLC OPERATIONS UPDATE Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), is todayproviding an update on its operations. In order to actively manage reservoir conditions of the Tilodiran field theproduction rate of the Tilodiran 2 well has been voluntarily restricted over thelast two months to 750 barrels of oil per day ("bopd") and this restriction willremain in place for the remainder of the current financial year. In addition,two successful workovers were completed later than expected and therefore begancontributing to production three months later than planned. As a consequence,total production net to Global for 2006 is now expected to be in the region of405,000 barrels of oil. However, daily production, net to Global, currentlystands at approximately 1,550 bopd, a marked increase on the average of 947 bopdfor the six months ended 30 June 2006. Capital expenditure for 2006 remains broadly on target at an expected $16million total for the year, with cash flow from production continuing to cover2006 contractual obligations. Capital expenditure for 2007 will be aligned tooperational cash flow from existing production and production growth fromadditional wells planned for 2007. Drilling of three delineation wells on the Primavera field remains largely onschedule with rig mobilization having been delayed just over a month to the endof December 2006 due in part to continued adverse weather conditions in theLlanos Basin. Rig mobilization will take three weeks and the first well isexpected to be drilled and completed in early February 2007. It will befollowed in quick succession by two further wells and an extensive seismicprogramme. It is expected that all these wells will have a positive impact ofthe Company's production rates early in the second half of 2007. The drillingof three delineation wells plus acquisition of 3D seismic as opposed to thepreviously envisaged five delineation wells during the period should betterprove up reserves in the Company's opinion and a full development programme willcommence on the Primavera field in 2008. Two other wells originally planned for the first half of 2007, Los Sauces 1 andTilodiran 3, are both likely to be the subject of some delay. In relation tothe Los Sauces contract, the Company will fulfill the seismic acquisition andreprocessing commitment with work beginning in January 2007. However, bothwells are liable to now be drilled during the second half of 2007 due largely toa lack of availability of a suitable rig in Colombia. It is hoped that the samemedium-heavy rig once contracted will drill both wells back-to-back. The Company is also assessing farm-out opportunities for a number of its longerterm exploration projects across its Latin America portfolio with the intentionof expediting progress on these projects through access to suitable drillingrigs. For further information: Global Energy Development PLCCatherine Miles, director of Investor Relations +44 (0) 20 7763 7177 www.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 Company, LP ("Ryder Scott"), the Company's independent engineers,reported that as at 31 December 2005, proved plus probable reserves ("2Preserves") net to Global totalled 17.5 million barrels of oil and proved plusprobable plus possible reserves ("3P reserves") net to Global totalled 67.5million barrels of oil. Based upon an approximate Brent Price of $58 perbarrel, this being the closing price as at 31 December 2005, Future Net Revenues("FNR") for the 2P reserves net to Global totalled $621 million and FNR for the3P reserves net to Global totalled approximately $2.8 billion. Ryder Scott reported that as at 1 July 2006 the total risked, mostly likely caserecoverable barrels of gross resources for the Company's exploration propertieswas 218.6 million barrels of oil equivalent. 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 byRyder Scott conform to definitions of probable and possible reserves approved bythe SPE/WPC using the deterministic methodology. This information has been reviewed by Ryder Scott. This information is provided by RNS The company news service from the London Stock Exchange