Operations Update

18 Jul 2007 07:00

Global Energy Development PLC18 July 2007 For immediate release 18 July 2007 GLOBAL ENERGY DEVELOPMENT PLC OPERATIONS UPDATE Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), intendsannouncing interim results for the six months ended 30 June 2007 on 19 September2007 and is providing the following update. The interim results will beprepared under International Financial Reporting Standards ("IFRS") and theconversion to IFRS from UK GAAP is progressing well. A key area of focus for the management during recent months has been the ongoingdiscussions with potential partners for different projects within the Company'sportfolio which covers the countries of Colombia, Peru and Panama and iscurrently 100% owned by the Company. Several technical review meetings havebeen held and discussions have also commenced with a number of new potentialpartners. Certain discussions are now advanced covering several differentprojects. The Company engaged outside technical consultants in June 2007 to determine theappropriate field development programme for the Colombian Luna Llena contractarea following the positive well test result on the area during the first halfof 2007. The management expects to finalise details of this programme bySeptember 2007. In addition, the Company signed the Panamanian Garachinecontract in June 2007, this being the first operations contract signed by thePanamanian government since 1990, and initial plans for this area are currentlybeing formulated. Ryder Scott Company, LP ("Ryder Scott"), independentpetroleum consultants, are also currently completing an updated evaluation ofthe Company's exploration properties following their annual audit of theCompany's reserves published in April 2007. Gross production for the six months ended 30 June 2007 totalled 242,693 barrelsof oil ("bbls") (six months ended 30 June 2006: 197,960 bbls) with sales, net tothe Company, of 210,369 bbls (six months ended 30 June 2006: 171,444 bbls),which was in line with management expectations. Industry costs continued to riseduring the first half of 2007 and in light of this and in order to preserve theCompany's strong margins the Company undertook cost reductions during the firsthalf of the year particularly in the area of non-core personnel. The associatedpersonnel cost savings should be almost fully evident in the second half of2007. Commenting, Stephen Voss, the Company's Managing Director, said: "Both Colombia and Peru have seen exceptional levels of interest in theirhydrocarbon industries over recent months and as a result the number of highpotential prospects still available to be contracted has diminished in theCompany's opinion. This situation is leading companies, either wishing to enterthese countries or extend their operations there, to increasingly look atpartnering. As a result Global is now in a very favourable position due to itsdiverse portfolio featuring a number of highly exciting prospects and this isborne out by the number and quality of the companies that the Company is holdingpartnering discussions with." For further information: Global Energy Development PLC Catherine Miles, Company Secretary +44 (0) 20 7763 7177www.globalenergyplc.com +44 (0) 7909918034 Notes to Editors: The Company's shares have been traded on AIM, a market operated by the LondonStock Exchange, since March 2002 (LSE-AIM: 'GED'). The Company's balancedportfolio covers the countries of Colombia, Peru and Panama and comprises a baseof production, developmental drilling and workover opportunities and severalhigh-potential exploration projects. Ryder Scott reported that as at 31 December 2006, proved reserves net to theCompany totalled 5.5 million barrels of oil equivalent ("mmboe"), proved plusprobable ('2P') reserves net to the Company totalled 19.4 mmboe and proved plusprobable plus possible ('3P') reserves net to the Company totalled 81.8 mmboe. Proven and probable oil and gas reserves are estimated quantities ofcommercially producible hydrocarbons which the existing geological, geophysicaland engineering data show to be recoverable in future years from knownreservoirs. The proved reserves reported by Ryder Scott conform to thedefinition approved by the Society of Petroleum Engineers ("SPE") and the WorldPetroleum Congress ("WPC"). The probable and possible reserves reported byRyder Scott conform to definitions of probable and possible reserves approved bythe SPE/WPC using the deterministic methodology. The information contained within this announcement has been reviewed by RyderScott. This information is provided by RNS The company news service from the London Stock Exchange