11th Dec 2007 07:01
Global Energy Development PLC11 December 2007 For Immediate Release 11 December 2007 GLOBAL ENERGY DEVELOPMENT PLC CORPORATE AND OPERATIONS UPDATE Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), is todayproviding an update since announcing its interim results and that it hadreceived approaches from parties interested in making an offer for the Company,both of which took place in September 2007. Update on partnering discussions The Company has continued its commercial discussions with potential partners forsome of its projects and is pleased to report that it has received positivefeedback from a number of potential partners. However, the Board of the Companyhas determined to postpone finalising an agreement pending the outcome ofdiscussions relating to a possible offer for the Company as the offer periodmakes the process of signing an agreement more protracted through requiringprior shareholder approval if the proposed agreement is deemed to be material. Production and operations update The Company's gross production has averaged 1,277 barrels of oil per day ("BOPD") from 1 July 2007 through 30 November 2007, against an average of 1,341 BOPD for the six months ended 30 June 2007, with no new production being added in 2007 and a decline rate for the combined production of 4.7%. The Los Sauces contract in Colombia has been relinquished back to the NationalHydrocarbons Agency of the Republic of Colombia ("ANH") as the Company wasunable to secure a rig to complete its work obligations under the contract.This contract, however, accounted for none of the Company's reserves asindependently reported by Ryder Scott Company, LP as at 31 December 2006. An independent technical study on the Luna Llena contract, also in Colombia, hasnow been completed by a different third party. Utilising the limitedinformation available, the study indicates a potential of 27 million barrels ofoil equivalent ("BOE") of reserves in the low case and 50 million BOE in the midcase with the vast portion located underneath the Meta River and a capitalintensive work programme would be needed to potentially realise these reserves. The Company is currently assessing where to apportion its financial resourcesfor 2008 and will provide an update early in 2008. Possible offer for the Company The Board of the Company continues to evaluate expressions of interest which mayor may not lead to an offer for the Company and further announcements will bemade by the Company in due course. 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 Mr.Stephen 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 ExchangeRelated Shares:
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