Information  X 
Enter a valid email address

Global Energy Dev. (NAUT)

  Print      Mail a friend       Annual reports

Thursday 31 July, 2014

Global Energy Dev.

Simiti Formation Fracturing Update

RNS Number : 8081N
Global Energy Development PLC
31 July 2014

Immediate Release                                                                                                31 July 2014



(the "Company" or "Global")





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.


The Catalina 1 well was stimulated using 27,000 barrels of water pumped into the Simiti formation.  Upon completion of the process, the stimulation fluids initially began to flow back from the formation into the wellbore at high rates but quickly declined.  Currently, approximately 6,750 barrels of the injected fluid has been recovered.  The Company has obtained useful information from the testing process, as follows:


·     The crude oil recovered demonstrated light oil gravity ranging between 28 and 30 API.


·     Pressure build-up analysis confirmed higher than normal reservoir pressure within the formation with a gradient of .52 psi per foot which is above the normal gradient of .465 psi per foot.


·     Production tests indicated low productivity of between 75 barrels of fluid per day (bfpd) to 125 bfpd in the Simiti formation. 


·     Both low pressure and high pressure post-stimulation injectivity tests were performed.  The low pressure test was three times the injectivity of the high pressure test, indicating favorable permeability in the Simiti formation. This is consistent with actual stimulation data which demonstrated higher permeability and natural fracture frequency than original engineering estimates, completed prior to stimulation operations. The higher formation permeability was further confirmed by the constant rate of injection and pressure throughout the stimulation process. Such high levels of preexisting permeability are believed to have allowed the stimulation water to scour the formation of the existing oil saturation and push it away from the wellbore. 


All of this information has been used to analyse the cause of the low rate of fluid recovery from the Simiti which the Company has diagnosed as being caused by the presence of an emulsion substantially blocking most reservoir fluids from reaching the wellbore.  The use of sand in the stimulation process is likely to have collected at the oil-water interface and acted as the agent to create the emulsion.  The Company is currently working to remove this blockage by inducing pressure surges within the formation, in order to form a corridor to allow oil to pass through the emulsion.  This process should ultimately cause the emulsion to break to allow fluids, both oil and water, to pass into the well at higher rates. If the surging process is not effective in removing the emulsion blockage, the Company will consider other techniques for dealing with the emulsion, including a work over of the well to chemically remove the emulsion.


Steve Voss, Global's Managing Director, commented, "The Company remains very optimistic that oil exists within the Simiti reservoir and can be produced at economic rates.  We will continue to apply the two methods discussed to remove the emulsion blockage which is currently preventing higher production rates, and we hope to have an update on our progress on this activity in August  We have learned valuable information from this test well that will benefit the remainder of our development project at Bolivar."



For further information please contact

Global Energy Development PLC

Anna Williams, Finance Director

+001 817 310 0240

[email protected]

Northland Capital Partners Limited

Louis Castro

   +44 (0)20 7382 1100

Lauren Kettle



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

a d v e r t i s e m e n t