Global Energy Development PLC Simiti Formation Fracturing Update (8081N)
July 31 2014 - 2:02AM
UK Regulatory
TIDMGED
RNS Number : 8081N
Global Energy Development PLC
31 July 2014
Immediate Release 31 July 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, South America, announces an
update on the operations of the Catalina #1 Simiti formation in the
Company's Bolivar Association Contract located in the northern
section of the Magdalena Valley in Colombia, South America.
The Catalina 1 well was stimulated using 27,000 barrels of water
pumped into the Simiti formation. Upon completion of the process,
the stimulation fluids initially began to flow back from the
formation into the wellbore at high rates but quickly declined.
Currently, approximately 6,750 barrels of the injected fluid has
been recovered. The Company has obtained useful information from
the testing process, as follows:
-- The crude oil recovered demonstrated light oil gravity ranging between 28 and 30 API.
-- Pressure build-up analysis confirmed higher than normal
reservoir pressure within the formation with a gradient of .52 psi
per foot which is above the normal gradient of .465 psi per
foot.
-- Production tests indicated low productivity of between 75
barrels of fluid per day (bfpd) to 125 bfpd in the Simiti
formation.
-- Both low pressure and high pressure post-stimulation
injectivity tests were performed. The low pressure test was three
times the injectivity of the high pressure test, indicating
favorable permeability in the Simiti formation. This is consistent
with actual stimulation data which demonstrated higher permeability
and natural fracture frequency than original engineering estimates,
completed prior to stimulation operations. The higher formation
permeability was further confirmed by the constant rate of
injection and pressure throughout the stimulation process. Such
high levels of preexisting permeability are believed to have
allowed the stimulation water to scour the formation of the
existing oil saturation and push it away from the wellbore.
All of this information has been used to analyse the cause of
the low rate of fluid recovery from the Simiti which the Company
has diagnosed as being caused by the presence of an emulsion
substantially blocking most reservoir fluids from reaching the
wellbore. The use of sand in the stimulation process is likely to
have collected at the oil-water interface and acted as the agent to
create the emulsion. The Company is currently working to remove
this blockage by inducing pressure surges within the formation, in
order to form a corridor to allow oil to pass through the emulsion.
This process should ultimately cause the emulsion to break to allow
fluids, both oil and water, to pass into the well at higher rates.
If the surging process is not effective in removing the emulsion
blockage, the Company will consider other techniques for dealing
with the emulsion, including a work over of the well to chemically
remove the emulsion.
Steve Voss, Global's Managing Director, commented, "The Company
remains very optimistic that oil exists within the Simiti reservoir
and can be produced at economic rates. We will continue to apply
the two methods discussed to remove the emulsion blockage which is
currently preventing higher production rates, and we hope to have
an update on our progress on this activity in August We have
learned valuable information from this test well that will benefit
the remainder of our development project at Bolivar."
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 7382
Louis Castro 1100
Lauren Kettle
This information is provided by RNS
The company news service from the London Stock Exchange
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