NAUT.L Regulatory News (NAUT)

9 Apr 2008 07:00

Global Energy Development PLC09 April 2008 For Immediate Release 9 April 2008 GLOBAL ENERGY DEVELOPMENT PLC ("Global" or the "Company") INDEPENDENTLY AUDITED 2007 RESERVE REPORT 2P RESERVES VALUED AT $641 MILLION Global Energy Development PLC, the Latin America focused petroleum explorationand production company (LSE-AIM: "GED"), today announces details from therecently completed Reserve Report prepared on the Company by the independentpetroleum consultants Ryder Scott Company, LP ("Ryder Scott") as at 31 December2007. Ryder Scott has prepared a Reserve Report for the Company annually sincethe Company's Admission to AIM in 2002. Ryder Scott reported that as at 31 December 2007, proved reserves net to theCompany totalled 4.6 million barrels of oil equivalent ("BOE") (as at 31December 2006: 5.5 million BOE), proved plus probable ("2P") reserves net to theCompany totalled 15.2 million BOE (as at 31 December 2006: 19.4 million BOE) andproved plus probable plus possible ("3P") reserves net to the Company totalled64.9 million BOE (as at 31 December 2006: 81.8 million BOE). Based upon a Brent Crude Oil Price of $93.85 per barrel, this being the closingprice as at 31 December 2007, the date of the Reserve Report, the Net PresentValue at a 10% discount ("NPV10") of the proved reserves was $214 million. TheNPV10 of the 2P reserves totalled $641 million and the NPV10 of the 3P reservestotalled $2.5 billion. Of the 4.2 million BOE reduction in the 2P reserves in 2007 against 2006, 0.4million BOE was attributable to production in 2007. 2.9 million BOE of thereduction, almost 70%, was a consequence of forecasted substantially higher oilprices accelerating the Company's cost recovery and therefore allowing Ecopetrolto back-in at two Colombian contracts at earlier dates in the future. Inaddition, a revised development approach at the Bolivar contract resulted inlower future development costs further accelerating Ecopetrol's back-in.Anticipated accelerated Ecopetrol back-in also accounted for 12.5 million BOE,approximately 74%, of the 16.8 million BOE reduction in the 3P reserves. Gross recoverable 3P reserves in 2007, totalling 106 million BOE, was a 2%increase against 2006 indicating that engineering remains almost entirelyunchanged since the prior Reserve Report. Commenting on the 2007 Reserve Report, Stephen Voss, Vice Chairman, said: "Substantially improved oil prices, while decreasing Global's contractual shareof future oil production, have also increased the Company's 2P property value to$641 million, an increase of over 50% versus the prior year. The Company is also pleased with the continued favourable performance of theTilodiran field in the Colombian Rio Verde contract in the Central Llanos whereproved reserves were increased by 30%. The upcoming drilling of the Boral 1 andTilodiran 3 wells in this contract demonstrates the Company's confidence in theopportunities to further increase Rio Verde production and reserves." For further information: Global Energy Development PLC +44 (0) 20 7763 7177Catherine Miles, director of Investor Relations +44 (0) 7909918034www.globalenergyplc.com Landsbanki Securities (UK) Limited +44 (0) 20 7426 9000Jeff Keating / Fred Walsh Notes to Editors: The Company's balanced portfolio covers the countries of Colombia, Peru andPanama and comprises a base of production, developmental drilling and workoveropportunities and several high-potential exploration projects. 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, independent petroleumconsultants, conform to the definition approved by the Society of PetroleumEngineers ("SPE") and the World Petroleum Congress ("WPC"). The probable andpossible reserves reported by Ryder Scott conform to definitions of probable andpossible reserves approved by the SPE/WPC using the deterministic methodology. The information contained within this announcement has been reviewed by RyderScott. In addition, the information contained within this announcement has beenreviewed by Mr. Stephen Voss, a Director of the Company. Mr. Voss is aregistered Petroleum Engineer in Texas and has been a Member of SPE for 25years. This information is provided by RNS The company news service from the London Stock Exchange