2 Jun 2008 07:00
| For Immediate Release | 2 June 2008 |
GLOBAL ENERGY DEVELOPMENT PLC
POSITIVE INITIAL TEST RESULTS FOR BORAL 1 EXPLORATION WELL
SIGNIFICANT UPLIFT IN TOTAL PRODUCTION VOLUMES
Global Energy Development PLC (the "Company"), the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), is pleased to announce a successful test result for the Boral 1 exploratory well within the Colombian Rio Verde contract.
The Boral 1 well was drilled vertically to a total depth of 12,340 feet and completed and tested in the Ubaque formation. Initially, a conventional drill stem test ("DST") was performed. The interval 12,053 feet to 12,059 feet was perforated with five shots per foot and flow stabilised at 369 barrels of oil per day ("bopd") with a 4.3% water cut. Subsequently an electric submersible pump was installed at a depth of 9,023 feet and the well flowed for 36.8 hours to produce a total of 777 barrels of oil. The final stabilised test rate using the pump was 630 bopd with a water cut of 11.6%. Total oil recovered in the initial testing was 1,276 barrels of 15.1 degrees API gravity. The presence of oil was also indicated in the Gacheta formation. It is anticipated that both the Gacheta and the Ubaque formations will be cored to more accurately verify the lithology and the fluid contents and subsequently tested in the next well drilled in the Boral field.
The Boral 1 well has now been shut-in to permit the safe demobilisation of the drilling rig to the Tilodiran 3 development well location. It is anticipated that the Boral 1 well will be placed back on production 10 June 2008. All the required documentation has been submitted to the Colombian Ministry of Mines and Energy to enable permission to be granted for a long-term test of six months duration. This will provide the additional information required to plan the development of the Boral field.
Ryder Scott Company, LP ("Ryder Scott"), who annually audit the Company's reserves, has assigned several additional drilling locations to develop the Boral field on the back of the successful Boral 1 well. As at 31 December 2007, Ryder Scott assigned the Boral field only possible reserves totalling just over 3 million barrels of oil equivalent ("BOE") net to the Company but the success of the Boral 1 well should result in some of these reserves now moving to the proved and probable reserve categories.
The production from the Boral 1 well, in which the Company retains a 100% working interest and is subject only to a royalty of 10.5%, is expected to greatly supplement the Company's current production which, net of royalties and state oil company participation, has been averaging around 1,000 bopd.
The Saxon drilling rig has now been mobilised to the Tilodiran 3 development well. Seismic indicates the Tilodiran 3 well location is slightly up-dip of the Tildoran 2 well which is currently producing a gross of 570 bopd.
Stephen Newton, Managing Director, commented on the successful Boral 1 well:
"We are delighted with the success of the Boral 1 well, especially considering it was an exploratory well. The success not only greatly supplements the Company's production volumes but it also now allows for the development of the Boral field which holds several further drilling locations and the reclassification of reserves. The drilling rig has been mobilized to the next drilling location, the Tilodiran 3 well, which is a proved undeveloped location and hence we have high expectations of at least equalling the Tilodiran 2 performance."
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.