TIDMGED
RNS Number : 3217C
Global Energy Development PLC
04 March 2011
For Immediate Release 4 March 2011
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company")
RESERVE REPORT
Global Energy Development PLC, the Latin America focused
petroleum exploration and production company (LSE-AIM: "GED"), is
pleased to announce a summary of its new UK reserve report dated 31
December 2010, which has been produced by the independent petroleum
engineers Ralph E. Davis Associates, Inc ("RED").
The Company has also completed an additional reserve data
document this year reflecting the requirements of Canadian Form
51-101. Key features of the 51-101 include:
-- statement of reserves data and other oil and gas
information;
-- report of independent qualified reserves evaluator or
auditor; and
-- "qualified reserves evaluator or auditor" application of
Canadian Oil and Gas Evaluation ("COGE") Handbook reserves
evaluation standards and definitions
RED prepared the 51-101 in accordance with these features and
other required rules and determined that the reserve volumetric
data presented in the previously described UK reserves report were
in agreement except for economic limit revisions related to oil
price guideline differences (as mandated by Canadian 51-101 rules).
The net reserves on the Form 51-101 report are largely the same as
the UK report, however, the net present value calculations were
slightly lower due to the required lower oil price assumptions (as
mandated by Canadian annual requirement). A summary of the UK
report and Canadian Form 51-101 report reserve volumetric data is
as follows:
Proved Probable Possible
--------- --------- ---------
('000s) ('000s) ('000s)
Net Reserves at 31 December 2010
(U.K.)
Oil / Condensate -
Mbbls 47,023 76,637 93,014
Gas - MMcf - - -
NGL - MBbls - 923 2,674
Net Reserves at 31 December 2010
(51-101)
Oil / Condensate -
Mbbls 47,021 76,637 (a)
Gas - MMcf - - (a)
NGL - MBbls - 923 (a)
Net Reserves at 31 December 2009
(U.K.)
Oil / Condensate -
Mbbls 56,022 84,860 123,540
Gas - MMcf 28,658 8,364 13,864
NGL - MBbls - - -
(a) The 51-101 report includes only estimates of proved and
probable quantities of oil and gas reserves. Possible reserves are
not quantified nor considered within a 51-101 report based on
Canadian industry standards. Therefore, 3P information is not
comparable.
The overall decrease in reserve volumes is due primarily to the
Company's farm-out of a 60% working interest of Block 95 in Peru,
the reclassification of gas reserves, production, accelerated
reversionary interests and minor field revisions. Approximately 6.1
million barrels equivalent of gas volumes (previously included in
the 2P reserves as at 31 December 2009) no longer qualify as
reserves in accordance with existing rules due to a current lack of
a commercial gas sales contract. Upon execution of a future sales
contract, gas volumes may then qualify and be restored to company
reserves.
A summary of the Net Present Value from the UK report and the
Canadian Form 51-101 report is as follows:
2010 2010 2009
----------- ----------- -----------
U.K. 51-101
Pricing (US$ per Bbl):
Initial West Texas Intermediate
Oil Price $ 91.36 $ 85.00 $ 79.36
Price Ceiling $ 120.00 $ 118.80 No Ceiling
Net Present Value (NPV)
(US$'000):
Proved NPV (10% discount) $ 1,560,817 $ 1,118,192 $ 2,039,893
Probable NPV (10% discount) $ 2,399,860 $ 1,711,516 $ 2,931,329
Possible NPV (10% discount) $ 2,119,729 (b) $ 3,975,032
(b) The 51-101 report includes only estimates of proved and
probable quantities of oil and gas reserves. Possible reserves are
not quantified nor considered within a 51-101 report based on
Canadian industry standards. Therefore, 3P information is not
comparable.
Both the UK reserve report and the complete 51-101 report will
be posted on the Company's website for review by qualified
parties.
Regarding the current reserve reports, Managing Director,
Stephen Voss commented: "Higher transport fees and tariffs slightly
reduced our cash margins and net present values of our Colombian
reserves and such costs trends are expected to continue as the
country of Colombia attracts increasing amounts of oil investment
resulting in further production growth. However, for the first time
the Company is reporting this year reserves of natural gas liquids
based upon recovered condensates in our Bolivar block. The Company
is very excited about the potential for possibly higher margin
natural gas liquids and condensate production from various zones in
the contract area including its Simiti shale gas resource. As our
farmout process designed to accelerate the development of all of
our various fields continues to progress, including Peru Block 95
where drilling is expected to commence later this year, the Bolivar
block will be an early priority."
For further information:
Global Energy Development PLC
Steve Voss, Managing Director +011 281 574 1910
www.globalenergyplc.com
Matrix Corporate Capital LLP
Louis Castro +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
and Peru and comprises a base of production, developmental drilling
and workover opportunities and several high-potential exploration
projects. The Company currently holds six contracts: five in
Colombia and one in Peru.
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 RED 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 27 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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