TIDMGED
RNS Number : 8303K
Global Energy Development PLC
30 June 2014
Immediate Release 30 June 2014
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company" or "Global")
SIMITI FORMATION FRACTURING UPDATE - BOLIVAR CONTRACT AREA
Global Energy Development PLC, the Latin America focused
petroleum exploration, development and production company (AIM:
GED) with operations in Colombia, announces an update on the
fracturing of the Catalina #1 Simiti formation in the Company's
Bolivar Association Contract ("Bolivar Contract") located in the
northern section of the Magdalena Valley in Colombia, South
America.
Steve Voss, Global's Managing Director, commented, "The Company
is pleased with the favorable reservoir information confirmed
during the preliminary water flowback stage of our Simiti
stimulation project. We are still flowing back the extensive amount
of injection water used in the hydraulic fracturing operation. The
flowback is anticipated to be affected by the degree of reservoir
connectivity which will affect how deeply the stimulation water has
penetrated the reservoir. To accelerate the process, we are
planning to install a hydraulic jet pump capable of lifting up to
3,000 barrels of fluid per day to remove the stimulation water from
the Simiti formation in order to produce the available oil. After a
period of testing, the Company estimates that it will have further
information available prior to the end of July. We continue to be
pleased with the project."
The Simiti Hydraulic Stimulation Project has been managed in
several segments including Planning, Logistics, Stimulation
Operations, Flowback Operations and Production Testing. The Company
is providing a detailed update below on the recent stimulation and
flowback operations as well as a recap on the earlier planning and
logistic phases:
-- Stimulation Operations
- All surface and subsurface equipment was installed and pressure tested
- Seventy three perforations from 4911' to 5530' were made from
the casing into the Simiti formation based upon the petrophysical
quality and natural fracturing of the selected intervals.
- Five inch high pressure stimulation tubing was installed in
the well; the workover rig was removed from the well site and
stimulation equipment assembled.
- The initial fluid injected into the Simiti perforated interval
was 3,000 gallons of 15% hydrochloric acid.
- Approximately 27,000 barrels of water were then pumped through
the perforations at a rate of 65 barrels per minute and a pressure
of 4,000 psi.
- The stimulation operation was completed with 181,000 pounds of
sand injected into the Simiti over an eight hour period.
- Equipment performed well during the stimulation operation.
-- Flowback Operations
- Flowback operations were commenced shortly after stimulation
operations were concluded at an initial rate of approximately 400
barrels of water per hour or 9,800 barrels per day flowing back out
of the Simiti perforated interval.
- Accumulated flowback is now 4,700 barrels out of 27,000 barrels pumped.
- During flowback operations, oil samples have been recovered with a gravity of 29 degrees API.
- The initial flowback well performance indicates the Simiti
contains at least normal reservoir pressures.
- A continuous gas flare has been burning throughout the flowback period.
- To accelerate the flowback of the stimulation fluid, the
Company will install an artificial lift system.
- Throughout the project, the Company has experienced no
security issues and has maintained favorable community
relationships involving the employment of local residents and other
assistance to residents of the area.
-- Production Testing
- The Company has repositioned a rig over the Catalina 1
wellbore and is proceeding to withdraw the frac string of tubing.
When the tubing is removed, production tubing will be installed
together with a hydraulic jet pump capable of lifting up to 3,000
barrels of fluid (water and oil) per day. During the first week of
July, the pump will be installed and begin operations to remove the
stimulation water from the Simiti formation in order to produce the
available oil. After a period of testing, the Company estimates
that it will have further information available prior to the end of
July.
-- Planning
- Global retained the services of Ely and Associates, an
experienced stimulation design, engineering and on-site operational
management company. Ely will manage approximately 40,000
stimulation stages worldwide in 2014 including the single stage
stimulation of the Simiti formation managed in behalf of
Global.
- Ely prepared a design calling for the injection of sand and
water previously recovered from other producing formations and
stored in surface pits. The design objective was to achieve a
stimulated formation length of 340 feet from the wellbore. John
Ely, the founder of Ely and Associates, also committed to
personally overseeing the equipment controls during the execution
of the stimulation process.
- Global also contracted with Halliburton to provide stimulation
equipment, high pressure pumps totaling approximately 20,000
hydraulic horsepower plus other chemicals and materials as well as
field personnel.
-- Logistics
- The stimulation sand required was not available in Colombia
and had to be transported from Houston, Texas to Colombia via cargo
ship and then was trucked from the north coast of Colombia to
Global's Catalina field located in the Bolivar Contract area of the
northern Middle Magdalena Valley.
- Other surface equipment was required in order to be compatible
with the high pressures of the stimulation process which were
expected to exceed 5,000 psi. This equipment was manufactured in
Houston and transported to Colombia.
- Thirty wheeled vehicles, pumps and/or tanks were also brought
into the Catalina field area over a seven day period and assembled
for stimulation operations.
For further information please contact
Global Energy Development PLC
Anna Williams, Finance Director +001 817 310 0240
awilliams@globalenergyplc.com
www.globalenergyplc.com
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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