4th May 2006 07:01
Global Energy Development PLC04 May 2006 Immediate Release 4 May 2006 GLOBAL ENERGY DEVELOPMENT PLC POSITIVE TEST RESULTS AND PLACING ON PRODUCTION OF TILODIRAN 2 WELL 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 Tilodiran 2 exploratory wellon the Rio Verde Exploration and Production Concession contract area in thecentral Llanos region of Colombia. The Company perforated two intervals between 13,020 feet and 13,230 feet andtested the Upper Massive Ubaque and Upper Gacheta formations of the Tilodiran 2well. These formations are two of an overall six potentially oil productivezones that were identified by the management team with the four other zones nottested at this stage. The Tilodiran 2 well, using mid-range pump speeds, produced at a maximumshort-term rate of 2,746 bopd of 16 degree API gravity oil and 761 mcfd ofmethane for a total maximum short-term rate of 2,873 boepd. Two productiveformations, the Upper Massive Ubaque and the Upper Gacheta, were tested on acombined, commingled basis to achieve these maximum rates. The Upper Gachetaproduced 19 degree API gravity crude at a very low solution gas-oil ratio andessentially zero BS&W. The Upper Massive Ubaque, which is 200 feet below theUpper Gacheta, produced 15 degree API gravity crude at a solution gas-oil ratioof 275 cubic feet of methane per barrel of oil and a variable BS&W rate of 35%to 65%. Based on the Company's experience, the gas-oil ratio for the UpperMassive Ubaque is exceptionally favourable and should enhance the long termdeliverability of oil from this formation. Given these gas-oil ratio and water cut characteristics the Company currentlyestimates a stabilized oil rate at the minimum possible pump speed to beapproximately 1,100 boepd. After arranging for additional surface handlingequipment as well as the necessary trucking capacity for short-term oiltransportation, Global will look to place the Tilodiran 2 well on continuousproduction within four weeks. The Company's recent gross production, prior tothe placing on continuous production of the Tilodiran 2 well, is 1,050 bopd. Future production rates from the Tilodiran 2 well may increase assuming thesuccessful addition of other potentially oil productive formations. Conversely,the Company may decide to restrict production rates according to what Globaldetermines to be the maximum efficient sustainable rate of production accordingto prudent reservoir management techniques. The Company intends drilling another well in the Tilodiran field later in 2006.The Company will look to test the Mirador formation in this well in addition toothers if present and bearing moveable hydrocarbons. The Mirador formation wasuntested in the Tilodiran 2 well but is considered by the management team topotentially be the most significant due to the Mirador's enhanced permeabilityand oil gravity characteristics found in similar fields in the Llanos region. Global's net interest in the Tilodiran 2 well is 89.5%. A total 10.5% royalty ispayable to others which includes 8% to the National Hydrocarbons Agency of theRepublic of Colombia, with the size of the royalty to be determined by futureproduction levels. Of particular interest to the Company is that the Rio Verde contract iscontiguous with the southern boundary of Global's newly signed Los SaucesExploration and Production Concession contract. Based upon data currentlyavailable the management team believe the Tilodiran field is part of a largertrend to the north into the Los Sauces contract area as well as further to theeast in the Rio Verde contract area. Further action to define the scope of theseopportunities is planned prior to the end of 2006 and continuing into 2007. Commenting on the successful Tilodiran 2 well, Stephen Voss, Global's ManagingDirector, said: "We are extremely pleased with the results of the Tilodiran 2 well productiontest. The well shows preliminary evidence of very significant oil deliverabilitythat will have a considerable impact on the Company's production volumes andrevenues. Our immediate work plans are to install additional production facilities andbegin planning for a pipeline extension to a junction 10 kilometres northwest ofTilodiran so that further field drilling can be undertaken later this year. Although we were unable to test all productive zones in the Tilodiran 2 well atthis stage, our future development plans will include specific efforts toidentify the productive potential of other formations, including the regionallyprolific Mirador. The Company is also very excited about the potential to extendthis success to other adjacent geologic features that appear similar to ourTilodiran field." 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 has been listed on the AIM Market of the London Stock Exchange sinceMarch 2002 (LSE-AIM: "GED"). The Company currently holds in excess of 5.2million acres through nine contracts in Colombia and Peru, an exclusiveTechnical Evaluation Agreement ("TEA") in Colombia and a concluded exclusive TEAin Panama. Global's portfolio comprises production, developmental drilling andworkover opportunities and several high-potential exploration projects. Glossary: boepd - barrels of oil equivalent per day bopd - barrels of oil per day BS&W - basic sediment and water mcfd - thousand cubic feet of gas per day This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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