GED Global Energy

RNS Number:5321U
Global Energy Development PLC
23 November 2005



Immediate Release                                               23 November 2005

                         GLOBAL ENERGY DEVELOPMENT PLC

                       NEW CONTRACT APPROVED IN COLOMBIA

                 LUNA LLENA CONTRACT WITHIN VALLE LUNAR ACREAGE

Global Energy Development PLC ("Global" or the "Company"), the Latin America
focused petroleum exploration and production company (LSE-AIM: "GED"), is
pleased to announce it has received approval for a new exclusive Exploration and
Production Concession contract with the National Hydrocarbons Agency of the
Republic of Colombia ("ANH") following electing to convert a portion of its
Valle Lunar acreage held under a Technical Evaluation Agreement ("TEA").

The new Luna Llena Contract, one of six contracts Global now holds in Colombia,
covers 369,000 acres within the approximate 2.1 million acre Valle Lunar TEA
located in the established Llanos Basin of eastern Colombia.

The Valle Lunar TEA, signed in May 2005, grants Global the exclusive option to
convert any of the acreage into a contract or contracts prior to or at the TEA's
conclusion in October 2006.

The early conversion of the Luna Llena Contract reflects the Company's wish to
accelerate its work programme on this selected area due to the management's
belief that the opportunity to develop substantial medium heavy oil reserve
potential is significant.

Since Global signed the Valle Lunar TEA, the Company has conducted Landsat
analysis of the acreage which yielded a considerable amount of surface data,
particularly within the Luna Llena area, that can be utilised in subsurface
interpretation. In addition, the Luna Llena acreage contains the identified El
Miedo field which has substantial well tests and subsurface geologic control
that was acquired by two international oil companies in the 1980's from an
extensive drilling effort conducted by them. Oil production tests were
successful at this time. Global has already completed engineering and geologic
studies on the El Miedo field.

Global will own 100% of the Luna Llena Contract subject only to an initial 8%
royalty, with the size of the royalty to be determined by future production
levels. The Contract duration is 30 years divided into an initial six-year
exploration phase and a 24 year exploitation and production phase. Under the
terms of the Luna Llena Contract, Global must within 18 months acquire 165
kilometres of 2D seismic, reprocess 500 kilometres of existing seismic, re-enter
and test one existing well and drill two exploratory wells which cover the total
geologic column. Global can then elect, if it so wishes, to proceed to phase two
which also covers 18 months and requires re-entering another existing well or
drilling another exploratory well. Phases three to five, all optional, are each
12 months and require the drilling of an exploratory well in each phase.



The Company anticipates the potential deposits within the Luna Llena Contract to
be at shallow depths requiring relatively modest costs and enabling more rapid
drilling. In addition, shallower wells should help surmount any rig availability
issues to a certain extent as smaller rigs are more readily available.

Global will continue to hold the remaining Valle Lunar TEA acreage and conduct
further geologic analysis and geophysical tests over the next several months,
fulfilling all the associated work obligations, with a view to potentially
contracting more of the acreage.

The costs incurred under the required work programmes for both the new Luna
Llena Contract and Valle Lunar TEA will be met by cashflow from existing and
near-term production from the Company's five productive contracts in Colombia.
Commenting on the new Luna Llena Contract, Stephen Voss, Global's Managing
Director, said:
"We are intent on rapidly accelerating our exploitation activity in the portion
of our Valle Lunar acreage known as Luna Llena due to the tremendous potential
we consider it presents.
Two international oil companies drilled a number of shallow wells in the 1980s
within Luna Llena to a depth of approximately 3,000 feet which delineated what
is now known to be the El Miedo field. Oil production tests were successful but
the opportunity was deemed non-commercial at the time due to low oil prices.
We are now finalising our plans for new drilling in the El Miedo field in the
second half of 2006. In addition, we believe the Luna Llena and Valle Lunar
acreage outside of El Miedo holds other prospective opportunities and we will
conduct further analysis and tests over the next several months with a view to
contracting further acreage."


For further information:

Global Energy Development PLC
Catherine Miles, director of Investor Relations           +44 (0) 20 7763 7177
www.globalenergyplc.com                                   +44 (0) 7909918034

Notes to Editors:

Global currently holds approximately 5.1 million acres through seven contracts
in Colombia and Peru, an exclusive Technical Evaluation Agreement ("TEA") in
Colombia and a concluded exclusive TEA in Panama which is in the process of
being converted into an exclusive contract. As at 31 December 2004, Global had
independently reported proved and probable reserves totalling 16.5 million BOE.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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