20 Jun 2011 07:00
Immediate Release 20 June 2011
GLOBAL ENERGY DEVELOPMENT PLC
("Global", the "Company" or the "Group")
SURFACE EQUIPMENT IMPROVES AND
PRODUCTION RATES INCREASE
Global Energy Development PLC, the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), which operates in Colombia through its wholly-owned subsidiary Colombia Energy and Development Company, is pleased to announce continued enhancement in its daily production uplift as a result of the successful workover programme of its Tilodiran 2 and 3 wells within the Colombian Rio Verde contract. Subsequent to the workover programme results and the increase in gross daily production from 1,100 BOPD to 2,200 BOPD announced on 8 June 2011, and following continued extended testing of these wells and improved surface facilities and capabilities, the Company's total gross oil production has now reached sustainable levels of approximately 2,520 BOPD.
The Company was able to begin increasing production at Tilodiran 2 and Tilodiran 3 following an improvement in surface handling facilities and increased oil transport capacity. The Tilodiran 3 continues to demonstrate high levels of fluid deliverability at very low reservoir drawdown pressures. Average oil gravities are approximately 15 degrees API with produced gas-oil ratios of 400 to 500 cubic feet per barrel. Such gas-oil ratios are unusual for the lower Cretaceous reservoirs in the Colombian Llanos basin and appear to be adding significant reservoir drive energy to the more typical water drive also present in both wells. Accordingly, the Company plans to continue to slowly increase pump speeds in order to determine the upper limits of maximum sustainable production rates.
Steve Voss, Managing Director, commented: "Global continues to be optimistic regarding the performance of both the Tilodiran 2 and Tilodiran 3. Produced gas and oil characteristics are encouraging. The Company has also arranged for the sale of these increased oil volumes at commodity prices that are at a premium to West Texas Intermediate due to market conditions favoring sales of Vasconia blend heavy crude oil."
Global Energy Development PLC
|
Buchanan Communications
Tim Thompson | +44 (0)20 7466 5126 |
Ben Romney | +44 (0)20 7466 5132 |
Notes to Editors:
The Company's shares have been traded on AIM, a market operated by the London Stock Exchange, since March 2002 (AIM: GED). The Company's balanced portfolio includes the countries of Colombia and Peru and comprises a base of production, developmental drilling and workover opportunities and several exploration projects. The Company currently holds six contracts: five in Colombia and one in Peru.
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 27 years.