GED Global Energy

 

TIDMGED 
 
RNS Number : 7943X 
Global Energy Development PLC 
13 December 2010 
 

+-------------------------------+-------------------------------+ 
| Immediate Release             |              13 December 2010 | 
+-------------------------------+-------------------------------+ 
 
                          GLOBAL ENERGY DEVELOPMENT PLC 
                          ("Global" or the "Company") 
 
                               FARM-OUT AGREEMENT 
 
 
Global Energy Development PLC, the Latin America focused petroleum exploration 
and production company (LSE-AIM: "GED"), is pleased to announce that the Company 
has reached an agreement to farm-out 60% of its interest in the Peruvian Block 
95 Licence Contract (the "Contract") to Gran Tierra Energy, Inc. (NYSE Amex: 
"GTE", TSX: "GTE"). Following the farm-out, Global will retain a 40% interest in 
the Contract through its wholly-owned subsidiary Harken del Peru Limitada. 
 
Under the terms of the agreement, GTE will become the operator of the Contract, 
subject to and following approval from the Peruvian authorities, and will assume 
100% of the costs of an exploration well up to a maximum of US$ 15 million. GTE 
will also assume its share of the past costs incurred by the Company on the 
Contract for US$ 2 million. 
The Contract is currently under force majeure until the final environmental 
sub-permits are received.  The Company anticipates receiving the remaining 
sub-permits in the first half of 2011.  The exploration well is therefore 
expected to be drilled before the end of 2011. 
 
The Contract area is located in the Marañon Basin of north-eastern Peru and 
contains the Bretaña-1 discovery well, which was drilled in 1974 and tested 18 
degrees API gravity oil at natural flow rates of approximately 800 barrels of 
oil per day. As certified by our independent reserve engineers, Ralph E. Davis 
Associates, Inc., the 2P reserves associated with the Contract are estimated at 
21 million barrels (3P reserves at 63.9 million barrels). 
 
This agreement represents an important opportunity for Global to accelerate its 
development and unlock these important 2P and 3P reserves. 
 
 
Commenting, Stephen Voss, Vice Chairman, said: 
 
"We are very pleased to have reached this agreement with a partner that has an 
impressive track record of oil exploration and subsequent development success in 
South America and are convinced that it will bring significant mutual benefits 
to both companies." 
 
 
For further information: 
 
Global Energy Development PLC 
 
+---------------------------------------+--------------------+ 
| Patrick Garo, Chief Financial Officer | +44 (0)20 3178     | 
|                                       | 5156               | 
+---------------------------------------+--------------------+ 
| www.globalenergyplc.com               |                    | 
+---------------------------------------+--------------------+ 
 
Matrix Corporate Capital LLP 
 
+---------------------------------------+--------------------+ 
| Alaistair Stratton                    | +44 (0)20 3206     | 
|                                       | 7000               | 
+---------------------------------------+--------------------+ 
| Tim Graham                            |                    | 
+---------------------------------------+--------------------+ 
 
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 and Peru, and comprises a base of 
production, work over opportunities and high potential developmental drilling. 
The Company currently holds six contracts: five in Colombia and one in Peru. 
 
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 27 years. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 AGRBXBDDIBBBGGD 
 

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