4 Aug 2008 07:00
| For Immediate Release | 4 August 2008 |
GLOBAL ENERGY DEVELOPMENT PLC
SUCCESSFUL INITIAL TEST RESULT FOR TILODIRAN 3 WELL
FURTHER FORMATIONS TO BE TESTED
Global Energy Development PLC (the "Company"), the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), which operates in Colombia through its wholly-owned subsidiary Harken de Colombia Limited, is pleased to announce a successful test result for the Tilodiran 3 well within the Colombian Rio Verde contract.
The Tilodiran 3 well was drilled directionally to a total depth of 13,200 feet and, initially, a conventional drill stem test ("DST") was performed in the Ubaque formation. The top of the interval was perforated from 12,836 to 12,842 feet resulting in a stabilized natural flow rate of 322 barrels of oil per day ("bopd") of 15.9 degrees API gravity with a water cut of 0.3% on a choke of 18/64" with a flowing wellhead pressure of 285 psi.
During drilling the presence of oil was also indicated in the lower and upper/middle Gacheta formation as well as the Mirador formation. The Company has now commenced testing the lower Gacheta formation and will directly follow this with a test of the Mirador formation. Both the lower Gacheta and Mirador formations are previously untested in the Tilodiran field. Testing of these additional formations should take approximately five to seven days each.
Ryder Scott Company, LP ("Ryder Scott"), the independent petroleum engineers who audit the Company's reserves yearly, has now been instructed by the Company to complete a revised reserve report covering the entire Rio Verde contract due to the recent drilling successes within the contract area. Ryder Scott has already been working on a development plan for the Boral field within the contract area based upon the successful Boral 1 well, with this well allowing for the reclassification of some of the Boral field's possible reserves.
Stephen Newton, Managing Director, commented on the successful well test:
"The production from the Ubaque formation combined with hoped for production from other formations could mean that the Tilodiran 3 well makes an important contribution to the Company's existing production."
For further information:
Global Energy Development PLC
Catherine Miles, Company Secretary +44 (0) 20 7763 7177
www.globalenergyplc.com +44 (0) 7909918034
Landsbanki Securities (UK) Limited +44 (0) 20 7426 9000
Fred Walsh / Sebastian Jones
Notes to Editors:
The Company's shares have been traded on AIM, a market operated by the London Stock Exchange, since March 2002 (LSE-AIM: "GED"). The Company's balanced portfolio covers the countries of Colombia, Peru and Panama and comprises a base of production, developmental drilling and workover opportunities and several high-potential exploration projects.
Proven and probable oil and gas reserves are estimated quantities of commercially producible hydrocarbons which the existing geological, geophysical and engineering data show to be recoverable in future years from known reservoirs. The proved reserves reported by Ryder Scott, independent petroleum consultants, conform to the definition approved by the Society of Petroleum Engineers ("SPE") and the World Petroleum Congress ("WPC"). The probable and possible reserves reported by Ryder Scott conform to definitions of probable and possible reserves approved by the SPE/WPC using the deterministic methodology.
The information contained within this announcement has been reviewed by Ryder Scott.
In addition, the information contained within this announcement has been reviewed by Mr. Stephen Voss and Mr. Stephen Newton, both Directors of the Company. Mr. Voss is a Registered Professional Engineer in Texas and has been a Member of SPE for 25 years. Mr. Newton holds a Mining/Petroleum Engineering degree from the University of Queensland, Brisbane and a Master of Science Petroleum Engineering degree from Imperial College London. He has been a Member of SPE for 35 years.