HEC news. POSITIVE TEST RESULTS
1,100 boepd and Harken still gets 34%of total revenues of global to add to harkens bottom line nice !!!!
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RNS Number:4081C
Global Energy Development PLC
04 May 2006
Immediate Release 4 May 2006
GLOBAL ENERGY DEVELOPMENT PLC
POSITIVE TEST RESULTS AND PLACING ON PRODUCTION OF TILODIRAN 2 WELL
Global Energy Development PLC ("Global" or the "Company"), the Latin America
focused petroleum exploration and production company (LSE-AIM: "GED"), is
pleased to announce positive test results from its Tilodiran 2 exploratory well
on the Rio Verde Exploration and Production Concession contract area in the
central Llanos region of Colombia.
The Company perforated two intervals between 13,020 feet and 13,230 feet and
tested the Upper Massive Ubaque and Upper Gacheta formations of the Tilodiran 2
well. These formations are two of an overall six potentially oil productive
zones that were identified by the management team with the four other zones not
tested at this stage.
The Tilodiran 2 well, using mid-range pump speeds, produced at a maximum
short-term rate of 2,746 bopd of 16 degree API gravity oil and 761 mcfd of
methane for a total maximum short-term rate of 2,873 boepd. Two productive
formations, the Upper Massive Ubaque and the Upper Gacheta, were tested on a
combined, commingled basis to achieve these maximum rates. The Upper Gacheta
produced 19 degree API gravity crude at a very low solution gas-oil ratio and
essentially zero BS&W. The Upper Massive Ubaque, which is 200 feet below the
Upper Gacheta, produced 15 degree API gravity crude at a solution gas-oil ratio
of 275 cubic feet of methane per barrel of oil and a variable BS&W rate of 35%
to 65%. Based on the Company's experience, the gas-oil ratio for the Upper
Massive Ubaque is exceptionally favourable and should enhance the long term
deliverability of oil from this formation.
Given these gas-oil ratio and water cut characteristics the Company currently
estimates a stabilized oil rate at the minimum possible pump speed to be
approximately 1,100 boepd. After arranging for additional surface handling
equipment as well as the necessary trucking capacity for short-term oil
transportation, Global will look to place the Tilodiran 2 well on continuous
production within four weeks. The Company's recent gross production, prior to
the placing on continuous production of the Tilodiran 2 well, is 1,050 bopd.
Future production rates from the Tilodiran 2 well may increase assuming the
successful addition of other potentially oil productive formations. Conversely,
the Company may decide to restrict production rates according to what Global
determines to be the maximum efficient sustainable rate of production according
to prudent reservoir management techniques.
The Company intends drilling another well in the Tilodiran field later in 2006.
The Company will look to test the Mirador formation in this well in addition to
others if present and bearing moveable hydrocarbons. The Mirador formation was
untested in the Tilodiran 2 well but is considered by the management team to
potentially be the most significant due to the Mirador's enhanced permeability
and oil gravity characteristics found in similar fields in the Llanos region.
Global's net interest in the Tilodiran 2 well is 89.5%. A total 10.5% royalty is
payable to others which includes 8% to the National Hydrocarbons Agency of the
Republic of Colombia, with the size of the royalty to be determined by future
production levels.
Of particular interest to the Company is that the Rio Verde contract is
contiguous with the southern boundary of Global's newly signed Los Sauces
Exploration and Production Concession contract. Based upon data currently
available the management team believe the Tilodiran field is part of a larger
trend to the north into the Los Sauces contract area as well as further to the
east in the Rio Verde contract area. Further action to define the scope of these
opportunities is planned prior to the end of 2006 and continuing into 2007.
Commenting on the successful Tilodiran 2 well, Stephen Voss, Global's Managing
Director, said:
"We are extremely pleased with the results of the Tilodiran 2 well production
test. The well shows preliminary evidence of very significant oil deliverability
that will have a considerable impact on the Company's production volumes and
revenues.
Our immediate work plans are to install additional production facilities and
begin planning for a pipeline extension to a junction 10 kilometres northwest of
Tilodiran so that further field drilling can be undertaken later this year.
Although we were unable to test all productive zones in the Tilodiran 2 well at
this stage, our future development plans will include specific efforts to
identify the productive potential of other formations, including the regionally
prolific Mirador. The Company is also very excited about the potential to extend
this success to other adjacent geologic features that appear similar to our
Tilodiran field."
For further information:
Global Energy Development PLC
Catherine Miles, director of Investor Relations +44 (0) 20 7763 7177
www.globalenergyplc.com +44 (0) 7909918034
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Notes to Editors:
Global has been listed on the AIM Market of the London Stock Exchange since
March 2002 (LSE-AIM: "GED"). The Company currently holds in excess of 5.2
million acres through nine contracts in Colombia and Peru, an exclusive
Technical Evaluation Agreement ("TEA") in Colombia and a concluded exclusive TEA
in Panama. Global's portfolio comprises production, developmental drilling and
workover opportunities and several high-potential exploration projects.
Glossary:
boepd - barrels of oil equivalent per day
bopd - barrels of oil per day
BS&W - basic sediment and water
mcfd - thousand cubic feet of gas per day
This information is provided by RNS
The company news service from the London Stock Exchange
END
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