GED Global Energy

 

TIDMGED 
 
RNS Number : 6832S 
Global Energy Development PLC 
15 September 2010 
 

+------------------------------+------------------------------+ 
| Immediate Release            |            15 September 2010 | 
+------------------------------+------------------------------+ 
 
 
                          GLOBAL ENERGY DEVELOPMENT PLC 
                                (the 'Company') 
 
                                 LOAN AGREEMENT 
 
Global Energy Development PLC, the Latin America focused petroleum exploration 
and production company (LSE-AIM: "GED"), announces that on 14 September 2010 it 
agreed a senior secured note with HKN, Inc. for a principal amount of US$5 
million (the "Loan Agreement"). 
 
The Loan Agreement allows for the full principal amount to be available to the 
Company with immediate effect, and the Company intends to use it to provide 
supplementary funds, in addition to operating cash flow, with which to continue 
executing its previously announced Three Year Plan.  The Loan Agreement provides 
for an interest charge of 10% per annum, payable monthly in arrears, with the 
principal amount being repayable in full by 14 September 2011. The loan 
principal and interest will be secured against a proportion of the production 
from the Company's Rio Verde contract and the Company will pay to HKN Inc. a 
transaction fee of approximately US$60,000. 
 
By virtue of HKN, Inc.'s 33.56% holding in the Company, the Loan Agreement 
constitutes a related party transaction under the AIM Rules for Companies. With 
the exception of Mr. Mikel Faulkner, who is a director of HKN, Inc., the 
Company's Directors consider, having consulted with Matrix Corporate Capital 
LLP, the Company's Nominated Adviser, that the terms of the transaction are fair 
and reasonable insofar as the Company's shareholders are concerned. 
 
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     | 
| Tim Graham                            | 7000               | 
+---------------------------------------+--------------------+ 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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