Well Testing Result
June 15 2010 - 2:00AM
UK Regulatory
TIDMGED
RNS Number : 6032N
Global Energy Development PLC
15 June 2010
+-------------------------------+-------------------------------+
| Immediate Release | 15 June 2010 |
+-------------------------------+-------------------------------+
GLOBAL ENERGY DEVELOPMENT PLC
(the 'Company')
WELL TESTING RESULT
Global Energy Development PLC, the Latin America focused petroleum exploration
and production company (LSE-AIM: "GED"), announces the result of the testing of
the Rio Verde 2 exploratory obligation well within the previously untested Rio
Verde fault block of the Colombian Rio Verde contract.
The well was drilled to a final depth of 12,340 feet and log evaluation had
indicated commercial hydrocarbons present. Oil and gas shows were recorded
during drilling and standard log calculation techniques were employed by one
major service company and one independent log analysis company indicating that
hydrocarbons were present and that well testing should proceed. However,
following testing of four zones between 11,300 and 12,100 feet - Middle Gacheta
(11,933 to 11,967 feet); Lower Gacheta (12,058 to 12,068 feet); Upper Gacheta
(11,774 feet, 11,789 to 11,790 feet, 11,815 feet and 11,826 to 11,827 feet); and
Guadalupe (11,328 to 11,334 feet) - no commercial hydrocarbons were found.
Of the four zones, only the Lower Gacheta tested heavy oil and gas, but in
non-commercial quantities. All the other zones tested fresh to low chloride
water with no oil. The Company tested its production casing to confirm that no
mechanical issues could have created a casing leak allowing shallow fresh water
zones to affect the various tests. No mechanical problems were eventually
detected and it was concluded that the low salinity water tests were valid.
The preliminary geological conclusion regarding the Rio Verde fault block is
that the fault seal was ineffective and allowed all hydrocarbons to leak up-dip
into the adjacent productive Boral fault block.
The well will, therefore, be plugged and abandoned and the Rio Verde fault block
relinquished to the National Hydrocarbons Agency ('ANH'). The Rio Verde field
accounted for 0.9 million barrels of oil equivalent ('BOE') of probable reserves
(representing approximately 1% of the Company's net reserves in this category)
and 2.2 million BOE of possible reserves.
The Company remains committed to its previously announced Three Year Plan but
the programme and timetable will be reviewed in light of the Rio Verde 2 well
results. The Company will now begin preparations for the next well, Tilodiran
4, on the producing Tilodiran field, which is intended to be completed by the
end of the year.
For further information:
Global Energy Development PLC
+---------------------------------------+--------------------+
| Catherine Miles, Company Secretary | +44 (0)20 3178 |
| | 5156 |
+---------------------------------------+--------------------+
| www.globalenergyplc.com | +44 (0)7909918034 |
+---------------------------------------+--------------------+
Matrix Corporate Capital LLP
+---------------------------------------+--------------------+
| Louis Castro | +44 (0)20 3206 |
| | 7000 |
+---------------------------------------+--------------------+
| Tim Graham | |
+---------------------------------------+--------------------+
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 information is provided by RNS
The company news service from the London Stock Exchange
END
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