Long Term Financing Update (5507W)

TIDMGED

RNS Number : 5507W

Global Energy Development PLC

01 February 2012

Immediate Release 1 February 2012

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company")

GLOBAL OBTAINS LONG TERM FINANCING

TO REDEEM EXISTING SHORT TERM CONVERTIBLE NOTES

AND TO ACCELERATE DEVELOPMENT ACTIVITIES

Global Energy Development PLC, the Latin America focused petroleum exploitation, development and production company (AIM: GED) with operations in Colombia and Peru, announces that on 31 January 2012 it closed a Fixed Rate Note Payable with HKN, Inc. ("HKN") for the principal amount of US$12 million (the "Note Payable").

The Note Payable is not convertible into shares and allows for the full principal amount to be available to the Company with immediate effect. The Note Payable is subject to an interest charge of 10.5% per annum, payable quarterly in arrears, with the principal amount being repayable in full on 30 September 2013. The Note Payable is currently unsecured, but HKN can require Global to provide adequate collateral security in the event of a material adverse effect. The Company will also pay to HKN a 1.75% transaction fee of approximately $210,000. The Company intends to redeem and extinguish the remaining $9.5 million principal amount (and accrued interest) of its Variable Coupon Convertible Notes prior to the current maturity date of December 2012 and to utilise remaining funds to accelerate development activities at its existing properties, primarily the Bocachico and Bolivar Contract Areas within Colombia.

HKN and parties acting in concert with it are interested in 21,715,266 Global shares, representing approximately 60.67 per cent. of the issued share capital of Global. By virtue of these holdings, the Note Payable constitutes a related party transaction under the AIM Rules. With the exception of Mr. Mikel Faulkner, who is a director of HKN, the Company's Directors consider, having consulted with Northland Capital Partners Limited, 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 please contact

Global Energy Development PLC

 
 Anna Williams, Director of Business 
   Development                           +001 817 310 0240 
  awilliams@globalenergyplc.com 
   www.globalenergyplc.com

Buchanan (Financial PR)

 
 Tim Thompson    +44 (0)20 7466 5000 
 Ben Romney 
 Helen Chan 
 
 
 Northland Capital Partners Limited 
                                       +44 (0)20 7796 
 Louis Castro                           8800

Lauren Kettle

This information is provided by RNS

The company news service from the London Stock Exchange

END

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