22nd Aug 2006 07:00
Global Energy Development PLC22 August 2006 Immediate Release 22 August 2006 GLOBAL ENERGY DEVELOPMENT PLC RIG CONTRACT SIGNED FOR FIVE WELL DRILLING PROGRAMME Global Energy Development PLC ("Global" or the "Company"), the Latin Americafocused petroleum exploration and production company (LSE-AIM: "GED"), ispleased to announce that it has signed a rig contract with Zigma ColombiaPetroleum Services S.A. ("Zigma") for the drilling of five delineation wells inthe Primavera field within the Colombian Luna Llena Concession contract area. The five Primavera wells are proposed to be drilled or spudded prior to the yearend to a depth of approximately 3,000 feet each with estimated drilling andcompletion time per well totalling only fifteen days. Each well is expected tocost approximately $1.1 million through to completion and installation ofsurface pumps and will be funded from cash flow from current production and cashavailable. Rig mobilization to the Primavera field is expected to commence in November 2006with timing dependent on weather conditions in the Llanos Basin of far easternColombia where the Luna Llena contract is located. The rig to be used is nowreserved for Global for the necessary time period and will undergo maintenanceprior to mobilization. The Company currently expects incremental contribution to production from thePrimavera wells by the end of 2006 with all five wells, if successful, beingplaced on long-term production during the first quarter of 2007. The Primavera field has substantial well-tests and subsurface geologic controlthat was acquired by four international oil companies from the 1980s into theearly 1990s and the Company is currently reprocessing existing seismic acquiredduring that period to determine the exact drilling locations of the five wells.If the initial five wells prove successful the Company intends to acquire newseismic data over the Primavera field in order to plan more effectively thelonger-term development drilling programme for the field. Global owns 100% of the Luna Llena contract subject only to an initial 8%royalty, with the size of the royalty to be determined by future productionlevels. Commenting on the rig contract and potential of the Primavera field, StephenVoss, Managing Director of Global, said: "The Primavera wells represent quick and cheap drilling and have the potentialto materially enhance our existing production within a short time-scale.Importantly, the signing of the rig contract provides us with greater comfort onour proposed drilling schedule and also increases the opportunity to bookadditional reserves at the year end. "The Primavera field could in the management's opinion be analogous to theRubiales field which is located in a similar geologic position near the marginof the Llanos basin and is considered to be one of the largest producing fieldsin Eastern Colombia." 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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