NAUT.L Regulatory News (NAUT)

17 Oct 2005 07:00

Global Energy Development PLC17 October 2005 Immediate Release 17 October 2005 GLOBAL ENERGY DEVELOPMENT PLC COMMENCEMENT OF PILOT TEST PHASE OF TORCAZ FIELD CYCLIC CO2 PROJECT IMPROVED RECOVERY PROGRAMME Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), ispleased to announce the commencement of the Pilot Test Phase of its Torcaz FieldCyclic CO2 Project. The Torcaz Field currently has two producing wells and lies within Global'sapproximate 54,700 acre Bocachico Association Contract located in the MiddleMagdalena Valley of Central Colombia. The Torcaz field oil quality is 15 degreesAPI and as such is classified as heavy. The Pilot Test Phase of the Cyclic CO2 Injection Project represents theimplementation of an engineering feasibility study conducted by the Company'sindependent engineers which recommended CO2 should be injected on a cyclic basisinto the producing Torcaz wells to assess the effect on production and reserverecovery rates in the Torcaz Field. The effect of CO2 injection should be to swell the oil in place thereby reducingits density and viscosity, improving overall oil mobility in and around eachwellbore and potentially increase production and reserve recovery rates. Currently, proved and probable reserve recovery rates for the Torcaz Field areestimated by Global's independent engineers to be less than 3% of the originaloil in place. The management of Global believe, following analysis of theengineering feasibility study, that if the Project is successful there could bea four-fold improvement in recovery rates. Total Torcaz Field proved and probable original oil in place was estimated byindependent engineers to be approximately 144 million barrels as at 31 December2004 with recoverable proved and probable reserves net to Global estimated to bealmost 3 million barrels. The Company has commenced equipment specification and purchasing and in additionhas already located a nearby source of CO2 supply of sufficient quality andvolume to meet the requirements of the feasibility study. Presently, Global estimates injection of CO2 will begin in at least one of itsTorcaz wells by the end of the year. When the Pilot Test is completed theCompany will provide the operating data to its independent engineers for furtheranalysis to determine how Cyclic CO2 Injection could benefit field-widedevelopment and production. Commenting on the Torcaz CO2 Pilot Test, Stephen Voss, Global's ManagingDirector, said: "We are most excited about the hugely positive effect cyclic CO2 injection couldhave on our Torcaz Field which is currently characterized by low productivitybut significant reserves and we hope to see encouraging production results bythe end of the year. There is a substantial volume of proved and probable original oil in place thatcould be converted into recoverable reserves based on the results of the PilotTest. Should results be encouraging, the Company will proceed to prepare theengineering and geological plans necessary to develop the Torcaz Field, whichour independent engineers currently estimate will require at least 20 wells inthe Proved and Probable Reserve Recovery Phase." For further information: Global Energy Development PLCCatherine Miles, director of Investor Relations +44 (0) 20 7763 7177www.globalenergyplc.com +44 (0) 7909918034 Notes to Editors: Global currently holds approximately 5.1 million acres through six contracts inColombia and Peru, an exclusive Technical Evaluation Agreement ("TEA") inColombia and a concluded exclusive TEA in Panama which is in the process ofbeing converted into an exclusive contract. As at 31 December 2004, Global hadindependently reported proved and probable reserves totaling 16.5 million BOE. This information is provided by RNS The company news service from the London Stock Exchange