Global Energy Development PLC Termination of Farm-out Agreements (5984B)
January 08 2015 - 2:00AM
UK Regulatory
TIDMGED
RNS Number : 5984B
Global Energy Development PLC
08 January 2015
Immediate Release 8 January 2015
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company" or "Global")
Termination of Farm-out Agreements for Bolivar and Bocachico
Association Contract Areas
Global Energy Development PLC, the Latin America focused
petroleum exploration, development and production company (AIM:
GED) with operations in Colombia, announces that the Company has
been informed that the wholly-owned subsidiary of Everest Hill
Energy Group Ltd ("Everest") elected to exercise its option under
the farm-out and joint operating agreements (the "Agreements") to
terminate and release its rights and obligations with respect to
the Company's Bolivar Association Contract area and its Bocachico
Association Contract area (the "Contract Areas") in the Middle
Magdalena Basin due to the significant fall of the price of crude
oil.
All future obligations by Everest to undertake the future
funding of a work program with respect to the Contract Areas,
including an obligation to pay all future costs and expenses
incurred with respect to the proposed operations, have been
released with effect from 12 December 2014 in exchange for the
return of the 50 per cent. interest in Global's interest in the
Contract Areas.
Stephen C. Voss, Global's Managing Director, commented, "Given
the significant decline in oil prices, we fully understand
Everest's decision not to pursue drilling at this time and to
exercise their option to terminate both farm-out agreements. Global
has a robust balance sheet and is assessing its options for
increasing value for its shareholders and will update the market in
due course."
For further information please contact:
Global Energy Development PLC
Anna Williams, Finance Director
awilliams@globalenergyplc.com +001 817 310
www.globalenergyplc.com 0240
Northland Capital Partners Limited +44 (0)20 7382
Matthew Johnson / Gerry Beaney 1100
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGRPKODDDBKBKDK
Global Energy Development (LSE:GED)
Historical Stock Chart
From Jun 2024 to Jul 2024
Global Energy Development (LSE:GED)
Historical Stock Chart
From Jul 2023 to Jul 2024