28th Mar 2014 13:25
LONDON (Alliance News) - Global Energy Development PLC Friday said that revenues fell in 2013 due to lower oil pricing and decreased productions volumes during the year, although it increased its pretax profit, helped by lower general and administrative costs.
Global Energy Development is a Latin America focused petroleum exploration, development and production company with operations in Colombia.
For the year ended December 31, 2013, the group said that revenues fell to USD33.6 million, compared with USD44.0 million in 2012, as oil prices fell 8% during the year, and Llanos production volumes decreased.
Net sales volumes declined with 373,466 barrels sold in 2013, compared with 454,943 barrels sold in 2012, due to periodic downtime from the Tilodiran 2 and 3 wells during the year.
It reported a pretax profit of USD3.4 million for the year, compared with a pretax profit of USD760,000 in 2012, helped by a USD3 million decreased in general and administrative costs, based upon the reduction in non-cash share-based expense, decrease in foreign currency exchange costs, decreased personnel costs and other streamlining efforts.
Its net profit for the period was USD378,000, compared with a net loss of USD2.1 million the prior year.
The group said it ended the year with increased cash flow from operations of USD11 million, and expended USD10.1 million on capital projects primarily related to; the completion of the Tilodrian 1 well, the successful intervention on the Torcaz 2 well and improvements to surface facilities at its Tilodiran, Torcaz and Paloblanco fields during the year.
Global Energy recently signed a farm-out agreement with Everest Hill Energy Group Ltd, with respect to its Bolivar contract in the Middle Magdalena Basin in South America. The group said that developing and producing the oil reserves in the Bolivar Contract through its strategic farm-out partnership, is its principal goal in the current financial year.
"The recently announced Bolivar farm-out agreement allows the company to move ahead in the second quarter of 2014 with the first Bolivar project in a two-year work program, the re-entry of the Catalina 1 well, with costs fully funded by our partner," said Managing Director Stephen Voss in a statement.
Shares in Global Energy Development were down 7.2% at 77.00 pence per share Friday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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