27 Aug 2008 07:00
Immediate Release 27 August 2008
GLOBAL ENERGY DEVELOPMENT PLC
TWO FURTHER SUCCESSFUL TEST RESULTS FOR TILODIRAN 3 WELL
FOUR PRODUCTIVE FORMATIONS TESTED IN TOTAL
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 two further successful test results for the Tilodiran 3 well within the Colombian Rio Verde contract. These results confirm four productive formations in the Tilodiran 3 well and the overall Tilodiran field.
The Tilodiran 3 well was drilled directionally to a total depth of 13,200 feet and a conventional drill stem test ("DST") was performed in the Mirador formation. The interval was perforated from 11,652 to 11,662 feet resulting in a stabilized natural flow rate of 105 barrels of oil per day ("bopd") of 21 degrees API gravity, with a water cut of 0.5% on a choke of 18/64" and a flowing wellhead pressure of 21 psi. The results of the test conclusively demonstrate the existence of a previously unrecognized oil bearing reservoir in the Mirador formation in the Tilodiran field. The observed flow rate is less than has been observed in Mirador reservoirs with similar log-derived petrophysical properties in the Llanos basin. Therefore, management anticipates that allowing the formation to produce at higher pressure differentials on pump for an extended time period may result in more typical production rates for this reservoir.
The Company next performed a combined test of the Middle/Upper Gacheta formation, from perforations at 12,672 to 12,680 feet and 12,690 to 12,694 feet, and the Lower Gacheta formation, from perforations at 12,744 to 12,748 feet and 12,806 to 12,814 feet. This resulted in a stabilized natural flow rate of 480 bopd of 16.9 degrees API gravity on a choke of 28/64", a gas/oil ratio ("GOR") of 280 scf per barrel and a water cut of 2%, which analyses as completion fluid and is expected to further reduce as the well continues to clean up. A surfactant stimulation had been performed on both the intervals. However, the improvement in rate indicates the treatment was not effective in stimulating the Middle/Upper Gacheta interval, which is currently producing 518 bopd on pump in the Tilodiran 2 well. Consequently, this interval has been isolated and a stimulation treatment will be performed over the next few days. The Middle/Upper Gacheta tested at a natural flow rate of 120 bopd in the Tilodiran 2 well, comparable to the Tilodiran 3 test, and when this well was completed with an electric submersible pump the rate increased to 814 bopd.
The previously tested Ubaque and Lower Gacheta formations in the Tilodiran 3 well produced at stabilized natural flow rates of 322 bopd and 400 bopd respectively.
At the conclusion of the testing of the Tilodiran 3 well, the Company will analyse all the available flow and pressure data to determine the optimum completion to maximize production rates and reserve recovery. An electric submersible pump will be installed in the well to enhance the production.
Information available so far from the drilling of the Tilodiran 3 well and drainage area estimates from the Tilodiran 2 well indicates, in the management's opinion, that the Tilodiran field is larger than previously mapped and that further development wells could be drilled. A 3D seismic program is currently being designed to better image the extended flanks of the field and pick drilling locations.
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.
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.