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Global Energy Dev. (NAUT)

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Wednesday 27 August, 2014

Global Energy Dev.

Simiti Formation Project Update

RNS Number : 0452Q
Global Energy Development PLC
27 August 2014
 

Immediate Release                                                                                                27 August 2014

  

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company" or "Global")

 

 

SIMITI FORMATION PROJECT UPDATE

 

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.

 

On 31 July 2014, the Company announced low rates of fluid recovery from the formation due to the presence of an emulsion substantially blocking most reservoir fluids from reaching the wellbore and detailed a working plan to remove these blockages. While surging efforts over the past few weeks have continued to recover stimulation water injected into the well during the fracturing process, recovery is not at a rate which is satisfactory to the Company.  The surging process has not proven effective in breaking down the emulsion or flow barrier within the wellbore, so the Company has decided to temporarily shut in the well.  The Company believes it is advantageous to pause ongoing capital costs with the expectation that formation oil will naturally move back towards the wellbore and the emulsion will organically breakdown while formation and wellbore pressures equalise. 

 

In the meantime, the Company will begin to plan for its next workover project in the Bolivar Contract area. Using information gathered from the Simiti project, specifically the presence of significant natural fracturing, the Company does not expect to utilise high-pressure and high-volume fracturing in its next project.

   

Steve Voss, Global's Managing Director, commented, "We have learned that the Simiti formation has massive natural fracturing.  The Simiti formation absorbed the large amounts of stimulation fluid pumped into it during the fracturing process.  Allowing nature to run its course on the emulsion within this well for a few months is beneficial while we focus on our next Bolivar project. We remain optimistic about the existing oil reserves within the Simiti formation.  If we are not required to utilise hydraulic fracturing in future wells the project costs will be lessened and the operations simplified."

 

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

Matthew Johnson

   +44 (0)20 7382 1100

Lauren Kettle

  

 


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