Final Results

Immediate Release 21 March 2012

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company" or "Global")

AUDITED FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011

Global Energy Development PLC, the South America focused petroleum production and development company (AIM: GED) with operations in Colombia, is pleased to announce its audited final results for the year ended 31 December 2011.

2011 Highlights:

·; Revenue increased 81% to $43.1 million due primarily to increased production volumes and oil price recovery (2010: $23.8 million)

·; Oil prices increased 38% averaging $95 per barrel ("bbl") (2010: $69 per bbl)

·; Oil production increased 29% to 519,000 gross bbls (2010: 401,000 gross bbls)

·; Operating profit increased to $8.3 million (2010: Operating loss of $1.4 million)

·; Net profit of $2.0 million (2010: net loss of $2.1 million)

·; Reduced outstanding debt by 41% through cash redemptions from increased cash flow from operations

Mikel Faulkner, Chairman of Global Energy Development, commenting said; "With the Company's strong 2P reserve base of over 118 million barrels of oil, we have a large upside for increased production levels and added value to the Company. We are moving in the right direction and believe our efforts in 2012, alongside our third-party experts and service providers, will lay the groundwork for a successful year for the Company and its shareholders."

For further information please contact:

Global Energy Development PLC

Buchanan (Financial PR)

Lauren Kettle

Notes to Editors:

The Company's shares have been traded on AIM, a market operated by the London Stock Exchange, since March 2002 (AIM: GED). The Company's balanced portfolio includes the countries of Colombia and Peru and comprises a base of production, developmental drilling and workover opportunities. The Company currently holds five operated contracts in Colombia and one non-operated contract in Peru.

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 Ralph E. Davis, Inc., ("RED"), an independent petroleum engineering firm, conform to the definition approved by the Society of Petroleum Engineers ("SPE") and the World Petroleum Council ("WPC"). The probable and possible reserves reported by RED 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 RED. In addition, the information contained within this announcement has been reviewed by Mr. Stephen Voss, a Director of the Company, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies which outlines standards of disclosure for natural resource projects. Mr. Voss is a Registered Professional Engineer in Texas and has been a Member of SPE for 27 years.

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this release and include, but are not limited to, statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial position, liquidity, prospects, growth, strategies and expectations of the industry. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the development of the markets and the industry in which the Group operates may differ materially from those described in, or suggested by, any forward-looking statements contained in this release. In addition, even if the development of the markets and the industry in which the Group operates are consistent with the forward-looking statements contained in this release, those developments may not be indicative of developments in subsequent periods. A number of factors could cause developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in law or regulation, currency fluctuations (including the US dollar), the Group's ability to recover its reserves or develop new reserves, changes in its business strategy, political and economic uncertainty. Save as required by law, the Company is under no obligation to update the information contained in this release.

Past performance cannot be relied on as a guide to future performance.

Chairman's Statement

While much of the world is unfamiliar with the country of Colombia, South America, Global has operated through its subsidiaries in the country for over 20 years. The Company has seen Colombia grow from a net oil importer to a country in the midst of an energy boom with national production projected to surpass one million barrels of oil per day during 2012. Over the years, Colombia's tightening security regime and improved credit ratings have led to higher levels of foreign investment overwhelmingly directed to oil and mining sectors. These positive improvements in the country of Colombia have also led to renewed interest from international oil companies. Recent industry research estimates that South America, as an emerging market, will average growth in 2012 second only to emerging markets in Asia. Currently, the United States is the largest destination for Colombia's oil exports, followed by China and Japan. During the Company's tenure in Colombia, we have been proud to operate in a country progressing in such a strong and dynamic manner.

During 2011, the Company was able to increase annual oil production to 519,000 gross barrels; an increase of 29 per cent over the prior year through our workover efforts on our oil assets in the Llanos basin in Colombia. Our Contract Areas within the competitive Llanos basin continue to provide a strong and increasing level of cash flow from operations to the Company. Even with higher transportation costs from pipeline capacity restrictions in the country and increased trucking efforts, the Company was able to significantly increase its profit from operations to $8.3 million compared to a loss from operations of $1.4 million in 2010. The Company also made efforts to reduce and simplify its debt structure during 2011 by renegotiating a new facility and redeeming approximately $9.2 million of short-term debt and convertible notes with cash flow from operations.

With the Company's strong 2P reserve base of over 118 million barrels of oil, we have a large upside for increased production levels and added value to the Company, primarily from our Contract Areas located in the Middle Magdalena valley in Colombia. These Contract Areas, Bocachico and Bolivar, contain the majority of our undeveloped 2P reserves. We are moving in the right direction and believe our efforts in 2012, alongside our third-party experts and service providers, will lay the groundwork for a successful year for the Company and its shareholders.

Mikel FaulknerChairman20 March 2012

Managing Director's Review of Operations

The Company's workover programme of the Tilodiran #2 and Tilodiran #3 wells within the Llanos basin Rio Verde Contract area was successful in raising overall production levels by 29 per cent compared to the prior year. Subsequent to the workover programme, annual gross oil production for 2011 totaled 519,000 barrels. Following the workover programme and increased oil volumes, the Company experienced increasing water levels of approximately five barrels of water for every one barrel of oil. Production levels were voluntarily reduced from the Tilodiran wells in order to address the excessive water disposal costs. The Company has now completed a design and progressed the necessary permitting process to convert the shut-in Rio Verde #2 into a water disposal well. This project, scheduled for April 2012, will provide for low cost water disposal for the Tilodiran field with savings of an estimated $200,000 per month as well as facilitating increased oil production levels.

During 2011, revenues from our oil assets increased 80 per cent to $43 million (2010: $24 million) from higher production volumes and favourable oil pricing. Realised oil prices for our production volumes averaged $95.49 per barrel in 2011 as compared to $68.97 per barrel in 2010. The Company currently trucks the majority of its oil production due to the limited available capacity within Colombia's Llanos basin pipeline infrastructure which has resulted in higher transportation costs. Cost of sales increased 51 per cent in 2011 to $28.1 million (2010: $18.6 million). Despite the increase, the Company earned a gross profit of $15.0 million during 2011 against gross profit of $5.2 million in 2010. The Company ended 2011 with net profit after taxation of $2.0 million compared to a net loss of $2.1 million in 2010.

The Company generated net cash flows from operating activities of $14.2 million (2010: $7.0 million) and expended $6.0 million on capital projects primarily related to the Tilodiran workover programme, improved surface facilities, wellbore revisions at Torcaz #5 as well as environmental and social programs in Colombia and Peru. Approximately $9.1 million of cash was utilised to reduce short-term debt obligations and convertible notes during the year leaving the Company with cash at bank of $4.3 million at 31 December 2011.

In previous years, the Company has accelerated the development of its oil reserves in the Llanos basin of Colombia which has been the primary focus for the Company and its contractual obligatory capital investment. The Company will continue to maximize oil production and cash flow in our Llanos basin producing assets while optimizing margins through various low-cost production enhancement and development projects in 2012. However, the Company's growth potential lies in our Middle Magdalena valley assets, the Bolivar and Bocachico Contract areas, which will be the focus of future discretionary capital investment funded from our producing assets. In light of technology advances in heavy oil production (Cold Heavy Oil Production with Sand, "CHOPs") and unconventional reservoir hydraulic fracturing, the Company is re-directing its capital to advance production from our 2P oil reserves within these Contract areas in 2012.  

With our strategy for development in the Middle Magdalena valley, increased cash flow from our Llanos production base, a streamlined organization, and a portfolio of development opportunities within our 118.3 million barrels of 2P oil reserves, the Company is well positioned to enhance value for its shareholders in 2012.

Stephen Voss

Managing Director

20 March 2012

Oil and Gas Reserves Information (unaudited)As at 31 December 2011

The reserve estimates shown in this report were developed by Ralph E. Davis Associates, Inc., an independent petroleum engineering firm, and are based on the joint reserve and resource definitions of the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers consistent with UK reporting purposes. In 2011, the Company also completed an additional reserve report reflecting the requirements of Canadian Form 51-101. Proved and probable reserve estimates are based on a number of underlying assumptions including oil prices, future costs, oil in place and reservoir performance, which are inherently uncertain. Management uses established industry techniques to generate its estimates and regularly references its estimates against those of joint venture partners or external consultants. However, the amount of reserves that will ultimately be recovered from any field cannot be known with certainty until the end of the field's life.

All reserves are in the South America production and development area.

Estimated net proved and probable reserves of crude oil

1 The overall decrease in reserve volumes is due primarily to accelerated reversionary interest, end of contract life effects and minor field revision.

PRIMARY FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Incomefor the year ended 31 December 2011

Consolidated Statement of Changes in Equity

Consolidated Statement of Financial Positionas at 31 December 2011

Consolidated Statement of Cash Flowsfor the year ended 31 December 2011

ABRIDGED NOTES TO THE PRIMARY FINANCIAL STATEMENTS

For the twelve months ended 31 December 2011

1. Accounting Policies

Basis of preparation

The financial statements of the Group for the twelve months ended 31 December 2011 have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by European Union.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2011 or 2010 as defined by section 435 of the Companies Act 2006 but is derived from those accounts. Statutory accounts for 2010 have been delivered to the registrar of companies, and those for 2011 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, and (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts.

2. Earnings per share (EPS)

Basic earnings per share amounts is calculated by dividing the profit/(loss) for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share are calculated by dividing the profit/ (loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding at the end of the year, plus the weighted average number of shares that would be issued on the conversion of dilutive potential ordinary shares into ordinary shares. The calculation of the dilutive potential ordinary shares related to employee and Director share option plans includes only those options with exercise prices below the average share trading price for each period.

The calculation of the diluted EPS assumes all criteria giving rise to the dilution of the EPS are achieved and all outstanding share options are exercised. During the period ended 31 December 2010 the Group reported a loss. Therefore, because the effect of the potentially dilutive shares related to convertible loan notes and outstanding share options would be anti-dilutive, a separate diluted loss per share has not been reported because it is deemed to equal the basic loss per share.

(1)Interest and accretion charges of $1.5 million (2010: $1.4 million) in respect of convertible loan notes are not included in the calculation of diluted earnings per share as the effect would be anti-dilutive.

(2)Shares numbering 2,811,232 (2010: 4,565,027) in respect of outstanding convertible loan notes are not included in the calculation of diluted earnings per share as the effect would be anti-dilutive.

3. Income tax

The Group is subject to UK and Colombian taxation.

UK taxation

The Company does not expect to be liable for UK corporation tax in the foreseeable future because, as of the date of the last UK tax return, the Group had trading losses carried forward of $28.5 million as at 31 December 2011 and $25.6 million as at 31 December 2010 and these are expected to increase in the future.

Colombian taxation

The Group pays taxes in Colombia through the branch office of its wholly-owned subsidiary CEDCO. The Colombian corporation tax is calculated as the higher of net income tax or presumptive income tax which are determined as follows:

·; Presumptive income tax. An alternative minimum tax calculated on the prior year gross equity less liabilities at a rate of 3 per cent to determine the presumptive income. A rate of 33 per cent is applied to the presumptive income to arrive at the tax obligation; or

·; Net income tax. Calculated at a rate of 33 per cent taking into account revenues minus costs, and standard deductions.

Currently, CEDCO pays its income Tax based on Presumptive Income Tax.

Additionally, the Group pays an Equity Tax calculated using a taxable base of the Net Equity as at 1 January 2011 at a rate of 6 per cent. The payment of the tax is over four years with payments made twice per year.

The major components of income tax expense for the periods ended 31 December 2011 and 2010 are:  

Consolidated statement of comprehensive income:

4. Deferred tax

The gross movement in net deferred tax liabilities are reported as follows:

The Group offsets deferred tax assets and liabilities if, and only if, it has a legally enforceable right to offset current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to corporation taxes levied by the same tax authority. Deferred tax assets and liabilities listed are related to corporation taxes levied by the Colombian tax authority with jurisdiction over CEDCO.

Temporary differences between the tax base and carrying values arise in relation to the effect of inflation adjustments, differences in exchange rate of non-monetary assets, differences between tax and accounting depreciation and the adjustment and use of tax losses generated in 2008 and tax losses generated in 2010 that could be compensated with future profits with no due date.

The movement in deferred income tax assets and liabilities during the year is as follows:

The reduction in deferred tax assets during the year is primarily due to the use of tax losses carry forwards to offset 2011 taxable net profit in Colombia. There are certain expenses which are incurred by the Group outside of Colombia which are not deductible for Colombian income tax purposes. Therefore, taxable net profit in Colombia was higher than net profit recorded by the Group in its consolidated financial statements.

5. Convertible loan notes

At 1 January 2011, the Group had two convertible loan note agreements outstanding as follows:

·; Variable Coupon Convertible Notes Due October 2012 (the "2005 Notes") with an outstanding principal balance of $5.8 million, and a conversion price of 179p, and

·; Variable Coupon Convertible Notes Due December 2012 (the "2006 Notes") with an outstanding principal balance of $11.9 million and a conversion price of 305.8p

All convertible notes incurred an interest charge of 5 per cent per annum for the first three years, 6 per cent per annum for the next two years and thereafter an interest rate of 7 per cent. Interest was payable quarterly. The effective interest rate was therefore 5.96 per cent. The convertible notes were not secured against any assets of any Group company. In accordance with the provisions of IAS 32, the Group had determined the convertible loan notes to be a compound financial instrument requiring a proportion of the loan to be classified as equity. The reclassified element represents the difference between the fair value of a similar liability with no equity conversion option and the fair value of the existing convertible notes in current terms. Accordingly, an amount of $512,000 was reclassified to equity in 2006. Accreted interest was charged to the statement of comprehensive income over the life of the notes.

2005 Notes: In November 2011, the Group redeemed the outstanding principal amount ($5.8 million) of its 2005 Notes, along with accrued and unpaid interest, with existing cash resources. As at 31 December 2011, the 2005 Notes are no longer outstanding.

2006 Notes: In January 2011, in a privately negotiated transaction, the Group purchased and cancelled $600,000 of the 2006 Notes in consideration for the issuance of 317,000 ordinary shares of the Company. In December 2011, the Group repurchased and cancelled a further $1.7 million of the 2006 Notes for cash in addition to accrued and unpaid interest. Subsequently, in March 2012, the Group redeemed and cancelled the remaining principal amount ($9.6 million) of 2006 Notes along with accrued and unpaid interest.

6. Post reporting date events

(i) In December 2011, the assignment of 60 per cent of the Peruvian Block 95 License Contract to GTE was approved by the Peruvian authorities through Supreme Decree No. 050-2011-EM. Further to this, the agreement was duly signed in January 2012 by involved parties completing the farm-out contractual conditions.

(ii) In January 2012 the Group received approval of the extension of the Boral Area from the Rio Verde Contract to include the Rio Verde #2 well, which will be subject to a workover to convert it to a water injection well, thus allowing for the disposal of water and the recovery of secondary reserves.

(iii) In January 2012 the Group closed a Fixed Rate Note Payable with HKN for the principal amount of $12 million (the "Note Payable"). The Group has drawn down of $9.6 million of the Note Payable. The Note Payable is not convertible into shares and is subject to an interest charge of 10.5 per cent per annum, payable quarterly in arrears, with the principal amount being repayable in full on 30 September 2013. The Note Payable is currently unsecured, but HKN can require the Company to provide adequate collateral security in the event of a material adverse effect. The Group paid to HKN a 1.75 per cent transaction fee of approximately $210,000 upon closing of the Note Payable in January 2012.

(iv) In February 2012, the Group announced it has exercised the option to redeem the outstanding principal amount of its remaining 2006 Notes totaling $9.6 million. The 2006 Notes were redeemed for cash in March 2012 (the "Redemption Date") at the principal amount of the Notes together with interest accrued up to (but excluding) the Redemption Date.