re: Global Energy Development GED.L - 170p - TEA
This is one of the best value E&P stocks IMHO. Producing 2250 boepd right now and marketcap is around $120m
New TEA (Technical Evaluation Agreement) signed in LatAm today. Total acreage position now above 5m km²
uk-wire.com
Global Energy Development PLC
31 May 2005
GLOBAL ENERGY DEVELOPMENT PLC
NEW TECHNICAL EVALUATION AGREEMENT SIGNED IN COLOMBIA
VALLE LUNAR AREA WITHIN LLANOS BASIN
SIGNIFICANT UPLIFT IN ACREAGE POSITION
Global Energy Development PLC ('Global' or the 'Company'), the Latin America focused petroleum exploration and production company (LSE-AIM: 'GED'), announces that it has signed a new exclusive Technical Evaluation Agreement ('TEA') with the National Hydrocarbons Agency of the Republic of Colombia 'ANH') for the evaluation of potential hydrocarbon resources in the Valle Lunar area located in the established Llanos Basin of eastern Colombia. The total acreage covered by
the TEA is approximately 2.1 million acres.
The Valle Lunar TEA enlarges Global's acreage position by approximately 70% to 5.1 million acres held in Colombia, Peru and Panama under six contracts, one exclusive TEA and one concluded exclusive TEA currently under negotiation to be
converted into an exclusive contract. Global holds 100% ownership of all contracts.
The Valle Lunar area has been subject to prior exploration activity by an international petroleum company in 1981 with two exploration wells reported as oil productive at that time. The Valle Lunar TEA targets medium heavy oil deposits and grants Global the exclusive option to sign a future exclusive Exploration and Production Concession contract ('Contract'), typically approximately 25 years in duration, for acreage within the TEA area that Global identifies as prospective and suitable for exploratory drilling and production operations. The TEA duration is 16 months.
The TEA requires Global to complete within 12 months the reprocessing and interpretation of 800 linear kilometres of existing 2D seismic and certain other geophysical measurements and analysis, including the acquisition of aeromagnetic
data. Aeromagnetic surveys provide a fast, low-cost method of structurally mapping large areas and the Company intends to identify subsurface geologic features within the 2.1 million acres with geophysical characteristics similar to other large, producing Llanos Basin fields.
Global intends funding the work program required under the TEA from cashflow from production with production currently being achieved from four out of the Company's six contracts. Total costs incurred under the TEA are expected to total approximately $544,000.
Commenting on the new Colombian agreement, Stephen Voss, Managing Director of Global Energy Development PLC, stated:
'We are extremely excited about our new Valle Lunar TEA located in the established Llanos Basin region and where industry experts have predicted there is considerable further potential pointing to the known highly effective petroleum system and its analogy with the heavy oil belt of Venezuela.
The Company believes it is an area of significant medium heavy oil reserves which is of a less expensive and technically straightforward class to extract, as substantiated by data already available. Medium heavy oil has become of paramount importance to the oil industry as it and heavy oil are expected to increasingly dominate the world's hydrocarbon reserves and future refinery feed stocks..
We will seek to evaluate large potential reservoirs using the latest aeromagnetic techniques and based upon the results of our geophysical efforts, the Company anticipates signing a Concession contract and proceeding with shallow borehole testing in late 2006.
We anticipate the potential deposits to be at shallow depths requiring relatively modest costs and look forward to commencing our work programme and exploration efforts under this TEA against a backdrop of production from several
contracts we hold.'
For further information:
Global Energy Development PLC
Catherine Miles, director of investor relations +44 (0) 207 808 5550
www.globalenergyplc.com
+44 (0) 7909918034
Notes to Editors:
Global holds exclusive contracts and rights to explore for and / or produce oil and gas from a geographically diversified portfolio of prospective acreage in Colombia, Panama and Peru. |
