NAUT.L Regulatory News (NAUT)

22 Mar 2007 07:00

Global Energy Development PLC22 March 2007 For immediate release 22 March 2007 GLOBAL ENERGY DEVELOPMENT PLC WELL RESULT AND DRILLING UPDATE Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), announcesan update on its drilling operations within its Colombian Luna Llena Explorationand Production Concession contract. The Luna Llena 1 well was drilled vertically to a total depth of 3,229 feet.The well was deepened from its originally planned depth of 2,550 feet with theintent of reaching basement and testing a package of Carbonera C-7 sands whichfrom logs indicated potential mobile oil saturations. However, on furtherinvestigation the C-7 sands tested fresh formation water and were isolated. ADrill Stem Test ('DST') was then run on the 'El Miedo' sandstone in the upperCarbonera C-3 formation. The 'El Miedo' sandstone encountered was thinner thanexpected and it also tested fresh formation water; albeit with small traces ofhydrocarbons. The well has now been suspended pending results from other futurewells and any seismic data acquisition. Due to the results and after analysis of the Luna Llena 1 well the Company hasmodified its drilling plans on the Luna Llena field. The location of the secondwell, Luna Llena 2, has been revised and will be drilled directionally to reachthe 'El Miedo' sandstone in an updip position relative to the existing El Miedo4 well. This well has now been spudded and drilling and completion operationsare expected to take 20 days. Due to the additional drilling and testing periodthat was required for the Luna Llena 1 well and the narrow timing to release thedrilling rig before the start of the rainy season, which is expected to commenceshortly, the Company has also elected not to proceed with a third well at thistime, namely the re-entry of the existing El Miedo 4 well. Commenting, Stephen Voss, Global's Managing Director, said: "Whilst the result of the Luna Llena 1 well was disappointing it has providedus with valuable reservoir information and led us to modify our plans for theLuna Llena field which should increase the likelihood of success of the LunaLlena 2 well. The outcome of the Luna Llena 2 well combined with the results ofthe first well should also assist the Company in designing an appropriateseismic acquisition program as a possible next step in assessing the potentialof the Luna Llena field." For further information: Global Energy Development PLC Catherine Miles, Company Secretary +44 (0) 20 7763 7177 www.globalenergyplc.com +44 (0) 7909918034 The information contained within this announcement has been reviewed by MrStephen 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