LONDON--Global Energy Development PLC (GED.LN), a South America
focused petroleum production and development company with
operations in Colombia, said Wednesday it has contracted
Weatherford International (WFT) for a progressive cavity pump at
its Torcaz number 5 well.
MAIN FACTS:
-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.
-Ongoing oil production operations in the Rio Verde field
experienced lifting equipment outages and the Company was required
to perform a workover operation on the Tilodiran number 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 number 3 well suffered downtime, but
the Tilodiran number 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 June 30 will be in excess of
the prior year interim period.
-Lastly, operations to convert the existing Rio Verde number 2
well into water injection service for the Tilodiran field were
slightly delayed while the workover rig was utilized for the
Tilodiran number 2 workover.
- The Rio Verde number 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.
-Write to Mark Shapland at mark.shapland@dowjones.com