GED Global Energy

RNS Number:0798Z
Global Energy Development PLC
27 June 2007


For Immediate Release                                               27 June 2007


                         GLOBAL ENERGY DEVELOPMENT PLC

                         NEW CONTRACT SIGNED IN PANAMA

 FIRST OPERATIONS CONTRACT SIGNED BY THE PANAMANIAN GOVERNMENT IN RECENT YEARS



Global Energy Development PLC (the 'Company'), the Latin America focused
petroleum exploration and production company (LSE-AIM: 'GED'), is pleased to
announce that on the 26 June 2007 the Company signed a new contract with The
Ministry of Commerce and Industry for the Republic of Panama (the 'Ministry')
for the exploration and exploitation of hydrocarbons in the Garachine area of
eastern Panama (the 'Contract').

The Contract is the first operations contract which the Ministry has signed
since 1990 and follows the Panamanian government's announcement in 2005 of its
first policy on hydrocarbons and alternate energy sources and its desire to
promote hydrocarbons development in the country.

The Contract area covers 691,500 acres located wholly offshore in shallow water
with a maximum depth of only 140 feet and an estimated average water depth of
approximately 70 feet. The area covered by the Contract was previously held by
the Company under a Technical Evaluation Agreement ('TEA') during which time
extensive studies were conducted including the review and re-interpretation of
all available geologic data.

The Contract area has been the site of previous activity by several oil
companies since the 1920s. More recent exploration activity in the Garachine
area has confirmed Miocene oil source potential and outlined the regional basin
structure with a reconnaissance grid of seismic data.

The management of the Company believe that the Contract area has substantial
exploration potential in an untested Mid Miocene carbonate play. The play is
analogous to productive Miocene carbonates in Colombia as well as classic reef
discoveries in Southeast Asia, including the 5.7 trillion of cubic feet ('TCF')
of gas Ballena/Chuchupa field in Colombia and the 70 million barrels of oil
equivalent ('mmboe') Jene field in Sumatra, Indonesia. Secondary objectives of
the management would be Miocene and Oligocene clastics within anticlinal folds
of the Las Perlas deformed belt.

The Company will own 100% of the Contract which has a duration of up to 35
years, divided into a 5 year initial exploration phase, a 25 year exploitation
phase and a 5 year automatic extension phase on exploitation. The Company can
elect to extend the exploration phase by 2 years and also terminate the Contract
at any time during the exploitation phase by giving 120 days notice. Under the
terms of the Contract the Company must carry out certain minimum work
obligations during the exploration phase, estimated to cost approximately $10
million, which include the reprocessing and interpretation of existing seismic,
aero-gravity and magnetic studies, the acquisition and interpretation of new
seismic and the drilling of two exploration wells.

The Contract is subject to an initial royalty from any future hydrocarbon
production of 20% payable to the Ministry until the earlier of the Company's
recovery of 100% of its initial investments or five years from the date of
initial production, whichever occurs first. Thereafter, the royalty increases
to 50% on all hydrocarbons produced. Under the Contract the Company is exempt
from Panamanian income tax for the first five years of the Contract after which
time the enforced 25% income tax is absorbed by the maximum 50% royalty payable
by the Company.

Commenting on the new Panamanian Contract, Stephen Voss, the Company's Managing
Director, said:

"The Company is delighted to be the first to sign an operations contract in
Panama in recent history, a country that features economics comparable to the
other Andean nations where the Company currently operates. The Company has
analysed the Contract area extensively over recent years and considers there to
be several highly attractive geologic leads and prospects, most significantly
the carbonate play.  The Company now looks forward to commencing the work
programme and to potentially finding a partner in order to escalate activity and
realize the Contract's considerable potential value more quickly."



For further information:


Global Energy Development PLC                               +44 (0) 20 7763 7177
Catherine Miles, Company Secretary                          +44 (0) 7909918034
www.globalenergyplc.com





Notes to Editors:


The Company's shares have been traded on AIM, a market operated by the London
Stock Exchange, since March 2002 (LSE-AIM: 'GED'). As of 27 June 2007, the
Company holds nine contracts in the countries of Colombia, Peru and Panama.

The Company's balanced portfolio of contracts comprises a base of production,
developmental drilling and workover opportunities and several high-potential
exploration projects.

Ryder Scott Company, LP ('Ryder Scott'), the independent petroleum consultants,
reported that as at 31 December 2006, proved reserves net to the Company
totalled 5.5 mmboe, proved plus probable ('2P') reserves net to the Company
totalled 19.4 mmboe and proved plus probable plus possible ('3P') reserves net
to the Company totalled 81.8 mmboe.

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.

The information contained within this announcement has been reviewed by Ryder
Scott.

In addition, the information contained within this announcement has been
reviewed by Mr. Stephen Voss, the Company's Managing Director. Mr. Voss has
been a Member of SPE-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 Exchange
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