TIDMGED 
 
RNS Number : 4100I 
Global Energy Development PLC 
11 March 2010 
 

Immediate Release 
                                    11 March 2010 
                          GLOBAL ENERGY DEVELOPMENT PLC 
                                (the "Company") 
 
                                THREE YEAR PLAN 
 
Global Energy Development PLC, the Latin America focused petroleum exploration 
and production company (LSE-AIM: "GED"), is pleased to announce details of its 
Three Year Plan ("Plan") running 2010 through to the end of 2012 prepared in 
conjunction with independent consultants. 
 
The purpose of the Plan is to increase production volumes whilst developing the 
Company's reserve base and represents much increased drilling activity when 
compared to historic levels.   The Plan includes the drilling of 13 
strategically located wells, plus one well re-entry, two accompanying seismic 
acquisition programmes and the construction of facilities.  The Company owns 
100% of all its contracts and hence holds a 100% interest in all the wells to be 
drilled. 
 
The wells to be drilled were selected from over 1,000 potential drill sites by 
the independent petroleum engineers Ralph E. Davis Associates, Inc. ("RED") 
after re-evaluating all technical data.  RED selected the wells with the purpose 
of trying to move the majority of the Company's current probable and possible 
reserves into the proved reserve category whilst significantly increasing daily 
production volumes. The Company's net probable and possible reserves stand at a 
combined 212.1 million barrels of oil equivalent ("BOE") per a reserve report 
independently prepared by RED dated 31 December 2009. The Company's proved 
reserves stand at 60.8 million BOE net to the Company per the same report. 
 
Cost estimates for the wells to be drilled were sourced from a major oilfield 
services provider while RED provided production estimates.  RED then assessed 
economics to establish the sequence of drilling which would maximize production 
and cash flow and negate or reduce the need for external cash to fulfill the 
Plan, with the Company intending to fund the entire Plan itself from cash flow 
from operations.  For planning purposes the Company added cost contingencies and 
risked downwards RED's production estimates.  Factoring these in, the total cost 
of the Plan is estimated at approximately $110 million and is anticipated to 
result in combined new production of approximately 9,000 barrels of oil per day 
("BODP") net to the Company (total undeclined initial rate for all wells) in 
addition to moving an additional 200 million BOE to proved reserves (net to the 
Company) by the end of 2012. 
 
Since the Company owns 100% of all its contracts, not only does it retain all 
production apart from royalties payable to the applicable government agency, but 
it can also control the order and pace of the Plan.  A decision to accelerate 
the Plan or outside factors may mean the Company looks to financing alternatives 
outside of internal cash flow. 
 
All the wells to be drilled are defined as development wells by RED as they will 
be drilled in proved locations or are located on identified geologic structures. 
 
For further information: 
 
Global Energy Development PLC 
 
+---------------------------------------+--------------------+ 
| Catherine Miles, Company Secretary    | +44 (0)20 7228     | 
|                                       | 4266               | 
+---------------------------------------+--------------------+ 
| www.globalenergyplc.com               | +44 (0)7909918034  | 
+---------------------------------------+--------------------+ 
 
Matrix Corporate Capital LLP 
+---------------------------------------+--------------------+ 
| Alastair Stratton                     | +44 (0)20 3206     | 
|                                       | 7204               | 
+---------------------------------------+--------------------+ 
| Tim Graham                            | +44 (0)20 3206     | 
|                                       | 7206               | 
+---------------------------------------+--------------------+ 
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").  The Company's balanced 
portfolio covers the countries of Colombia, Peru and Panama and comprises a base 
of production, developmental drilling and workover opportunities and several 
high-potential exploration projects.  The Company currently holds seven 
contracts: five in Colombia; one in Peru; and one in Panama. 
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 Ralph E. Davis Associates, Inc. 
("RED"), independent petroleum engineers, conform to the definition approved by 
the Society of Petroleum Engineers ("SPE") and the World Petroleum Council 
("WPC").  The probable and possible reserves reported by RED 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 RED.  In 
addition, the information contained within this announcement has been reviewed 
by Mr. Stephen Voss, a Director of the Company, for the purpose of the Guidance 
Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in 
respect of AIM companies which outlines standards of disclosure for natural 
resource projects.  Mr. Voss is a Registered Professional Engineer in Texas and 
has been a Member of SPE for 26 years. 
This release may include statements that are, or may be deemed to be, 
"forward-looking statements". They appear in a number of places throughout this 
release and include, but are not limited to, statements regarding the Group's 
intentions, beliefs or current expectations concerning, among other things, the 
Group's results of operations, financial position, liquidity, prospects, growth, 
strategies and expectations of the industry. By their nature, forward-looking 
statements involve risk and uncertainty because they relate to future events and 
circumstances. Forward-looking statements are not guarantees of future 
performance and the development of the markets and the industry in which the 
Group operates may differ materially from those described in, or suggested by, 
any forward-looking statements contained in this release. In addition, even if 
the development of the markets and the industry in which the Group operates are 
consistent with the forward-looking statements contained in this release, those 
developments may not be indicative of developments in subsequent periods. A 
number of factors could cause developments to differ materially from those 
expressed or implied by the forward-looking statements including, without 
limitation, general economic and business conditions, industry trends, 
competition, commodity prices, changes in law or regulation, currency 
fluctuations (including the US dollar), the Group's ability to recover its 
reserves or develop new reserves, changes in its business strategy, political 
and economic uncertainty. Save as required by law, the Company is under no 
obligation to update the information contained in this release. 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCSFEESSFSSELD
Global Energy Development (LSE:GED)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Global Energy Development Charts.
Global Energy Development (LSE:GED)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Global Energy Development Charts.