27th Oct 2005 07:00
Global Energy Development PLC27 October 2005 Immediate Release 27 October 2005 GLOBAL ENERGY DEVELOPMENT PLC POSITIVE TEST RESULTS AND PLACING ON PRODUCTION OF NEW WELL WITHIN LOS HATOS CONTRACT LOS HATOS CONTRACT PROVIDING AN EXTENSION OF THE ESTABLISHED PALO BLANCO FIELD 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 first exploratory well on theLos Hatos Exploration and Production Concession Contract area in Colombia,namely Los Hatos 1. The Company perforated and tested the Mirador formation of Los Hatos 1 at amaximum rate of 408 bopd and 700 mcfd with a total maximum rate of 525 boepd of36 degree API gravity oil. BS&W was only 3%. Los Hatos 1 will be placed on continuous production in seven days and means thatthe Company will have production from five different contracts in Colombia inaddition to holding high-potential exploration acreage positions in Colombia,Peru and Panama. The Los Hatos Contract, which was signed in November 2004 and in which Globalowns a 100% working interest, covers 85,000 acres located in the central Llanosregion of Colombia and is adjoined to the Company's established, producing PaloBlanco field within the Alcaravan Association Contract. The Los Hatos Contractis subject only to an initial 8% royalty, with the size of the royalty to bedetermined by future production levels. Commenting on the Los Hatos 1 well, Stephen Voss, Global's Managing Director,said: "The success of the Los Hatos 1 well within the Los Hatos Contract area haseffectively extended the established, producing Palo Blanco field further to thesouth and will bring to five the number of producing contracts the Companyholds. The supplementary production will be important to the Company's cashflow,which funds workovers and development drilling and exploration activities. Finding and producing oil in the Mirador formation is especially encouraging asthis formation is producing commercial hydrocarbons from Estero 2, the mostnortherly well within the Palo Blanco field, and now Los Hatos 1, the southerlyextension of the Palo Blanco field. The Company will promptly undertake additional geologic and engineering analysisto assess the potential additional Mirador reserves throughout both the LosHatos and Alcaravan contracts." For further information: Global Energy Development PLCCatherine Miles, director of Investor Relations +44 (0) 20 7763 7177www.globalenergyplc.com +44 (0) 7909918034 Notes to Editors: Global currently holds approximately 5.1 million acres through six contracts inColombia and Peru, an exclusive Technical Evaluation Agreement ("TEA") inColombia and a concluded exclusive TEA in Panama which is in the process ofbeing converted into an exclusive contract. As at 31 December 2004, Global hadindependently reported proved and probable reserves totalling 16.5 million BOE. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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