NAUT.L Regulatory News (NAUT)

17 Apr 2007 07:01

Global Energy Development PLC17 April 2007 For immediate release 17 April 2007 GLOBAL ENERGY DEVELOPMENT PLC POSITIVE WELL TEST RESULT Global Energy Development PLC ('Global' or the 'Company'), the Latin Americafocused petroleum exploration and production company (LSE-AIM: 'GED'), ispleased to announce positive test results from its Luna Llena 2 well and anencouraging outlook for its Colombian Luna Llena Exploration and ProductionConcession contract. The two key objectives of the two well Luna Llena drilling programme were todetermine the Carbonera C3 formation production capacity in the Luna Llena areaand to acquire additional data that could be used to assess field wide reservepotential, identify an appropriate future data acquisition strategy as well asassist in designing a field development plan. The Luna Llena 2 well was drilled directionally to a total depth of 2,980 feetto reach the 'El Miedo' sandstone in the upper Carbonera C3 formation. In theLuna Llena 2 well, oil shows and oil stained cuttings were recovered in thedrilling process from the upper C3 'El Miedo' sandstone. Using nuclear andresistivity measurement devices the 'El Miedo' sandstone was determined to be ahigh porosity reservoir consisting of clean, well developed sands and favourablecalculated oil saturation. The oil saturation calculations and other field dataindicated the 'El Miedo' reservoir has the potential to flow a high percentageof oil. The downhole pressure measurements and fluid volumes recovered at the surfaceduring the initial test period of approximately one hour demonstrated a 15 footperforated section of the 'El Miedo' reservoir produced at the rate of 1,000barrels of total fluid per day. Over an additional test period of 13 hours theBase Sediment and Water ('BS&W') ratio averaged 55% with a low BS&W ratio of 8%.The water recovered in the test was almost entirely drilling fluid indicatingthe well was continuing to clean up due to the nature of the unconsolidatedformation. Based upon data collected in these tests, the 'El Miedo' formation yielded awell Productivity Index ('PI') which serves as a very encouraging indicator ofthe potential production capacity of the Luna Llena 2 well. The oil produced during testing was of a medium quality with an API gravity of19 degrees and a sample of which is now undergoing laboratory analysis todetermine its complete characterization. The Company now intends to appoint an independent technical consultant toestimate the reserves associated with the Luna Llena property which will be usedto design a field development programme. Commenting, Stephen Voss, Global's Managing Director, said: "The measured reservoir productivity of the Luna Llena 2 well exceeded theCompany's expectations and demonstrates the El Miedo reservoir to be productiveand an attractive developmental opportunity. The Company will now integrate allthe data collected over the last two months in order to estimate the impact ofthe delineation programme on future reserves and production. The Company is veryoptimistic about the future of this property." For further information: Global Energy Development PLC +44 (0) 20 7763 7177Catherine Miles, Company Secretary +44 (0) 7909918034www.globalenergyplc.com The information contained within this announcement has been reviewed by Mr.Stephen Voss, the Company's Managing Director. Mr. Voss has been a Member ofSPE-AIME (Society of Petroleum Engineers-American Institute of Mine Engineers)for 36 years and is a Registered Petroleum Engineer in Texas. This information is provided by RNS The company news service from the London Stock Exchange