Update on Development and Operational Projects (7522F)

TIDMGED

RNS Number : 7522F

Global Energy Development PLC

20 June 2012

Immediate Release 20 June 2012

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company")

UPDATE ON DEVELOPMENT AND OPERATIONAL PROJECTS

Global Energy Development PLC, the South America focused petroleum production and development company (AIM: GED), with operations in Colombia, South America is pleased to announce the following update regarding its ongoing development and operational projects in the Middle Magdalena Valley and the Llanos Basin.

TORCAZ: CHOPS - Torcaz Field, Middle Magdalena Valley

CHOPS (Cold Heavy Oil Production with Sand) Project - Torcaz #5 well

The Company has contracted with Weatherford International, Ltd. for a progressive cavity pump (PCP) which can be placed at a depth of approximately 7,900 feet. Continuous rod drive equipment will be utilized to power the PCP pump below the perforations in the Lower Mugrosa B formation. This PCP pump setting will help ensure proper oil and sand production and lift from the wellbore. The Company will test the well to analyze oil and sand production to determine the final separation facility design. The Company has committed to the workover rig required to undertake well operations, and the rig began moving to the Torcaz field yesterday. Workover operations are estimated to begin within 3 to 5 days. Well testing is expected to begin in mid July.

RIO VERDE PRODUCTION - Tilodiran Wells, Llanos Basin

Ongoing oil production operations in the Rio Verde field (Tilodiran wells) experienced lifting equipment outages and the Company was required to perform a workover operation on the Tilodiran #2 well in order to replace a damaged pump. Production from this well was offline for approximately 65 days while a workover rig was contracted and moved in but has been restored following the pump replacement. In addition, the Tilodiran #3 well suffered downtime, but the Tilodiran #3 is currently producing naturally at improved stable rates. Even with these outages, the Company continues to anticipate that revenue for the six months ended 30 June 2012 will be in excess of the prior year interim period.

Lastly, operations to convert the existing Rio Verde #2 well into water injection service for the Tilodiran field were slightly delayed while the workover rig was utilized for the Tilodiran #2 workover. The Rio Verde #2 project is now currently underway and is expected to be completed in July thereby reducing Llanos water disposal costs. This project is expected to reduce water disposal costs per barrel of water from approximately $5.00 to approximately $1.00 providing monthly savings of over $250,000 per month.

For further information please contact:

Global Energy Development PLC

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

Buchanan (Financial PR)

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

Lauren Kettle

Westhouse Securities +44 (0) 20 7601 6100

Tom Price

Andrew Matharu

Notes to Editors:

About CHOPS

CHOPS is a proven technique used by the Canadian oil industry of extracting heavy crude oil where sand production is encouraged as a means of enhancing well productivity using abrasives tolerant pumps. Using abrasives tolerant pumps, substantial production rate improvements over non-CHOPS techniques have been reported. The Company has 2P oil reserves of 67 million BOE (57% of Global's 2P reserve base) within the Bocachico Contract area as at 31 December 2011.

About Global Energy Development

The Company's shares have been traded on AIM, a market operated by the London Stock Exchange, since March 2002 (AIM: GED). The Company's balanced portfolio comprises a base of production, developmental drilling and workover opportunities and several exploration projects in Colombia, South America.

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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