Global Energy Development PLC Simiti Formation Project Update (0452Q)
August 27 2014 - 2:00AM
UK Regulatory
TIDMGED
RNS Number : 0452Q
Global Energy Development PLC
27 August 2014
Immediate Release 27 August 2014
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company" or "Global")
SIMITI FORMATION PROJECT UPDATE
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.
On 31 July 2014, the Company announced low rates of fluid
recovery from the formation due to the presence of an emulsion
substantially blocking most reservoir fluids from reaching the
wellbore and detailed a working plan to remove these blockages.
While surging efforts over the past few weeks have continued to
recover stimulation water injected into the well during the
fracturing process, recovery is not at a rate which is satisfactory
to the Company. The surging process has not proven effective in
breaking down the emulsion or flow barrier within the wellbore, so
the Company has decided to temporarily shut in the well. The
Company believes it is advantageous to pause ongoing capital costs
with the expectation that formation oil will naturally move back
towards the wellbore and the emulsion will organically breakdown
while formation and wellbore pressures equalise.
In the meantime, the Company will begin to plan for its next
workover project in the Bolivar Contract area. Using information
gathered from the Simiti project, specifically the presence of
significant natural fracturing, the Company does not expect to
utilise high-pressure and high-volume fracturing in its next
project.
Steve Voss, Global's Managing Director, commented, "We have
learned that the Simiti formation has massive natural fracturing.
The Simiti formation absorbed the large amounts of stimulation
fluid pumped into it during the fracturing process. Allowing nature
to run its course on the emulsion within this well for a few months
is beneficial while we focus on our next Bolivar project. We remain
optimistic about the existing oil reserves within the Simiti
formation. If we are not required to utilise hydraulic fracturing
in future wells the project costs will be lessened and the
operations simplified."
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
Matthew Johnson 1100
Lauren Kettle
This information is provided by RNS
The company news service from the London Stock Exchange
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