GED Global Energy

RNS Number:5602D
Global Energy Development PLC
25 May 2006


Immediate Release                                                 25 May 2006


                         GLOBAL ENERGY DEVELOPMENT PLC

                          ACTIVITY PROGRAMME FOR 2006


Global Energy Development PLC ("Global" or the "Company"), the Latin America
focused petroleum exploration and production company (LSE-AIM: "GED"), is
pleased to provide an update on its scheduled activity throughout the remainder
of 2006.


Highlights


  * 2006 capital expenditure of up to $23 million funded by cash flow from
    production

  * Large increase in activity in 2006 with focus on new assets and emphasis
    on exploration

  * Expect to drill or spud up to eight wells in total in 2006

  * Four or five seismic programmes scheduled to be carried out in the second
    half of 2006


Commenting on Global's scheduled activity for 2006, Stephen Voss, Managing
Director of Global Energy Development PLC, said:

"We have made excellent progress over the last year in adding high-potential
exploration assets to our legacy, producing portfolio and we are now progressing
them as rapidly as possible towards drilling.

Scheduled activity throughout the remainder of 2006 includes seismic programmes
on four or five of our exploration prospects and the drilling or spudding of up
to seven more wells.

We have already had a successful start to our 2006 drilling programme with the
first well of the planned eight, Tilodiran 2 within the Colombian Rio Verde
contract, going to significantly increase our gross daily production when it is
placed on continuous production within the next few weeks.

Five of the seven remaining scheduled wells are in the identified Primavera
field, formerly known as El Miedo, located within our Colombian Luna Llena
contract. They represent relatively low-cost and quick drilling due to their
shallowness. Negotiations for a rig are already advanced with the required rig
more readily available and not subject to such inflationary costs."


Operations

Drilling and Exploration

The Company plans to drill or spud up to seven more wells in the Llanos region
of Colombia during the remainder of 2006. The Llanos region is subject to rainy
seasons, and so delays to the drilling schedule may occur especially if the
current unfavourable weather conditions continue. Nevertheless negotiations for
the rigs for all these wells are far advanced.

Due to the success of the first well drilled in 2006, the Tilodiran 2 well
located within the Colombian Rio Verde contract, the Company hopes to commence
rig mobilization to the next exploratory well on this contract area, Tilodiran
3, late in the third quarter of 2006.

In addition, as the Director's believe that the Tilodiran field is part of a
larger trend to the north into the newly signed Colombian Los Sauces contract
area, the first exploratory well on the Los Sauces area is scheduled to be
spudded late in the fourth quarter of 2006.

The remaining five wells due to be drilled are located in the identified
Primavera field, formerly known as El Miedo, within the Colombian Luna Llena
contract area. These wells represent relatively low-cost and quick drilling due
to the shallowness of the wells and the required rig is more readily available
and not subject to such industry inflationary costs. Presently, it is
anticipated the drilling rig will arrive in the field area early in the fourth
quarter and the five wells completed and placed on long term production test by
the year end or very early 2007. The drilling operations in the Primavera field
are based upon a delineation programme designed to define the limits of what the
Company feels is the northeast portion only of the Primavera field. It is
expected that the delineation drilling, together with new 2D seismic to be
acquired in the next few months, will assist the Company's independent reserve
engineers, Ryder Scott Company, LP ("Ryder Scott"), in estimating at least the
partial extent of the oil volumes in this area.

The other seismic programmes to be carried out during the second half of 2006
are focused on the Los Sauces contract area, the Colombian Caracoli contract
area, where the Company is currently reprocessing and mapping and aims to drill
the first well early in the second half of 2007, and the Bretana field within
the Peruvian Block 95 contract area, where seismic will be acquired in the
fourth quarter of 2006 weather permitting. Additionally, seismic may be acquired
this year in Panama if the Garachine contract is signed prior to July 2006.

Production

As previously announced the Tilodiran 2 well should be placed on continuous
production by mid to late June 2006, weather permitting, at a rate of
approximately 1,100 boepd after which point the Company's gross daily production
should be upwards of 2,000 bopd. The Company's other currently producing wells,
located in the Colombian Los Hatos, Bolivar, Bocachico and Alcaravan contract
areas, have exhibited stable or marginally improved production levels over the
last two months.


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 has been listed on the AIM Market of the London Stock Exchange since
March 2002 (LSE-AIM: "GED"). The Company currently holds in excess of 5.2
million acres through nine contracts in Colombia and Peru, an exclusive
Technical Evaluation Agreement ("TEA") in Colombia and a concluded exclusive TEA
in Panama. Global's portfolio comprises production, developmental drilling and
workover opportunities and several high-potential exploration projects.

Ryder Scott, the Company's independent engineers, reported that as at 31
December 2005, proved plus probable reserves ("2P reserves") net to Global
totalled 17.5 million barrels of oil and proved plus probable plus possible
reserves ("3P reserves") net to Global totalled 67.5 million barrels of oil.
Based upon an approximate Brent Price of $58 per barrel, this being the closing
price as at 31 December 2005, Future Net Revenues ("FNR") for the 2P reserves
net to Global totalled $621 million and FNR for the 3P reserves net to Global
totalled approximately $2.8 billion.

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 Ryder Scott conform to the
definition approved by the Society of Petroleum Engineers ("SPE") and the World
Petroleum Congress ("WPC"). The probable and possible reserves reported by Ryder
Scott conform to definitions of probable and possible reserves approved by the
SPE/WPC using the deterministic methodology.



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

END
MSCSELEELSMSEII

Global Energy Development (LSE:GED)
Historical Stock Chart
From Sep 2024 to Oct 2024

Global Energy Development (LSE:GED)
Historical Stock Chart
From Oct 2023 to Oct 2024