Sale of Remaining Interest in PeruBlock95 Contract (0722F)

TIDMGED

RNS Number : 0722F

Global Energy Development PLC

11 June 2012

 
 For Immediate Release    11 June 2012

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company")

SALE OF REMAINING INTEREST IN PERU BLOCK 95 CONTRACT

Global Energy Development PLC, the South America focused petroleum development and production company (LSE-AIM: "GED"), with operations in Colombia, South America announces it has closed on the sale of its remaining 40% working interest of the Peruvian Block 95 License Contract ("Block 95") through its wholly-owned subsidiary to Gran Tierra Energy, Inc. (NYSE MKT: "GTE", TSX: "GTE").

Block 95 is the Company's only Peruvian asset, located in the Maranon Basin in the north-east area of the country, with net 2P reserves of 8.4m barrels of oil as reported in the Company's annual report and accounts for the year to 31 December 2011. The contract is in its third exploration phase although is currently under force majeure, pending approval of certain environmental licensing requirements. Block 95 did not generate any revenues in the year to 31 December 2011.

Under the terms of the purchase and sale agreement, the Company sold its 40% working interest to GTE for cash consideration of $5.4 million with $2 million payable upon closing and the remaining $3.4 million payable upon the earlier of either approval of the assignment from Perupetro, Peru's national agency of hydrocarbons, or one (1) year from the closing date. The effective date of the sale is 1 June 2012. The proceeds from the sale will be used for working capital generally.

Commenting, Stephen Voss, Managing Director, said: "Prolonged force majeure status of the Block 95 Contract and rising anticipated exploratory well costs led to our decision to sell our remaining working interest. This sale allows the Company to remain focused on our core value contract areas in the Middle Magdalena Valley and Llanos Basin in Colombia, South America."

For further information:

 
Global Energy Development PLC 
 Anna Williams, Director of Business 
  Development                             +001 817 310 0240 
 awilliams@globalenergyplc.com 
  www.globalenergyplc.com 
 Buchanan 
 Tim Thompson                           +44 (0)20 7466 5126 
 Ben Romney                             +44 (0)20 7466 5132 
 Northland Capital Partners Limited 
 Louis Castro                           +44 (0)20 7796 8800 
 Lauren Kettle 
 Westhouse Securities Limited 
 Tom Price                              +44 (0)20 7601 6100 
 Andrew Matharu

This information is provided by RNS

The company news service from the London Stock Exchange

END

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