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Global Energy Dev. (NAUT)

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Monday 30 June, 2014

Global Energy Dev.

Simiti Formation Fracturing Update

RNS Number : 8303K
Global Energy Development PLC
30 June 2014
 

Immediate Release                                                                                                30 June 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, announces an update on the fracturing of the Catalina #1 Simiti formation in the Company's Bolivar Association Contract ("Bolivar Contract") located in the northern section of the Magdalena Valley in Colombia, South America.

 

Steve Voss, Global's Managing Director, commented, "The Company is pleased with the favorable reservoir information confirmed during the preliminary water flowback stage of our Simiti stimulation project.  We are still flowing back the extensive amount of injection water used in the hydraulic fracturing operation. The flowback is anticipated to be affected by the degree of reservoir connectivity which will affect how deeply the stimulation water has penetrated the reservoir.  To accelerate the process, we are planning to install a hydraulic jet pump capable of lifting up to 3,000 barrels of fluid per day to remove the stimulation water from the Simiti formation in order to produce the available oil.  After a period of testing, the Company estimates that it will have further information available prior to the end of July.  We continue to be pleased with the project."

 

The Simiti Hydraulic Stimulation Project has been managed in several segments including Planning, Logistics, Stimulation Operations, Flowback Operations and Production Testing.  The Company is providing a detailed update below on the recent stimulation and flowback operations as well as a recap on the earlier planning and logistic phases:

 

§ Stimulation Operations

 

 

-     All surface and subsurface equipment was installed and pressure tested

-     Seventy three perforations from 4911' to 5530' were made from the casing into the Simiti formation based upon the petrophysical quality and natural fracturing of the selected intervals.

 

 

-     Five inch high pressure stimulation tubing was installed in the well; the workover rig was removed from the well site and stimulation equipment assembled.

 

-     The initial fluid injected into the Simiti perforated interval was 3,000 gallons of 15% hydrochloric acid. 

 

-     Approximately 27,000 barrels of water were then pumped through the perforations at a rate of 65 barrels per minute and a pressure of 4,000 psi.

 

-     The stimulation operation was completed with 181,000 pounds of sand injected into the Simiti over an eight hour period.

 

-     Equipment performed well during the stimulation operation. 

 

§ Flowback Operations

-     Flowback operations were commenced shortly after stimulation operations were concluded at an initial rate of approximately 400 barrels of water per hour or 9,800 barrels per day flowing back out of the Simiti perforated interval.

 

-     Accumulated flowback is now 4,700 barrels out of 27,000 barrels pumped.

 

-     During flowback operations, oil samples have been recovered with a gravity of 29 degrees API.

 

-     The initial flowback well performance indicates the Simiti contains at least normal reservoir pressures.

 

-     A continuous gas flare has been burning throughout the flowback period.

-     To accelerate the flowback of the stimulation fluid, the Company will install an artificial lift system.

 

-     Throughout the project, the Company has experienced no security issues and has maintained favorable community relationships involving the employment of local residents and other assistance to residents of the area.

 

·     Production Testing

-     The Company has repositioned a rig over the Catalina 1 wellbore and is proceeding to withdraw the frac string of tubing.  When the tubing is removed, production tubing will be installed together with a hydraulic jet pump capable of lifting up to 3,000 barrels of fluid (water and oil) per day. During the first week of July, the pump will be installed and begin operations to remove the stimulation water from the Simiti formation in order to produce the available oil.  After a period of testing, the Company estimates that it will have further information available prior to the end of July.

 

§ Planning

-     Global retained the services of Ely and Associates, an experienced stimulation design, engineering and on-site operational management company.  Ely will manage approximately 40,000 stimulation stages worldwide in 2014 including the single stage stimulation of the Simiti formation managed in behalf of Global.

 

-     Ely prepared a design calling for the injection of sand and water previously recovered from other producing formations and stored in surface pits.  The design objective was to achieve a stimulated formation length of 340 feet from the wellbore.  John Ely, the founder of Ely and Associates, also committed to personally overseeing the equipment controls during the execution of the stimulation process.

 

-     Global also contracted with Halliburton to provide stimulation equipment, high pressure pumps totaling approximately 20,000 hydraulic horsepower plus other chemicals and materials as well as field personnel.

 

§ Logistics

-     The stimulation sand required was not available in Colombia and had to be transported from Houston, Texas to Colombia via cargo ship and then was trucked from the north coast of Colombia to Global's Catalina field located in the Bolivar Contract area of the northern Middle Magdalena Valley.

 

-     Other surface equipment was required in order to be compatible with the high pressures of the stimulation process which were expected to exceed 5,000 psi.  This equipment was manufactured in Houston and transported to Colombia.

 

-     Thirty wheeled vehicles, pumps and/or tanks were also brought into the Catalina field area over a seven day period and assembled for stimulation operations.

 

For further information please contact

Global Energy Development PLC

Anna Williams, Finance Director

+001 817 310 0240

[email protected]

www.globalenergyplc.com


Northland Capital Partners Limited

Louis Castro

   +44 (0)20 7796 8800

Lauren Kettle

  

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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