Global Energy Development PLC Reserve Report (0858D)
26 Janvier 2015 - 8:00AM
UK Regulatory
TIDMGED
RNS Number : 0858D
Global Energy Development PLC
26 January 2015
Immediate Release 26 January 2015
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company" or "Global")
Year-End 2014 Reserve Report
Global Energy Development PLC, the Latin America focused
petroleum exploration, development and production company (AIM:
GED) with operations in Colombia, announces the results of its UK
reserve report at 31 December 2014, which has been produced by the
independent petroleum engineering firm of Ralph E. Davis
Associates, Inc ("RED").
A summary of the results of the 2014 reserve report are as
follows:
-- Lower oil benchmark price at 31 December 2014 of $57.33 per
barrel ("bbl"), with an escalation of 3% each following year, was
used to price oil reserves (2013: $109.95 per bbl);
-- Lower oil prices resulted in reductions in the estimated
quantity of proved and probable reserves and in the estimated
future net cash flows expected to be generated from the Company's
Colombian contract areas;
-- The elimination of anticipated improved recoveries through
fracture stimulation (based upon the results of the Catalina #1
well) within the Simiti Formation in the Bolivar Contract area
reduced estimated quantities and future net cash flows of proved
and probable reserves;
-- Low oil prices caused the heavy oil reserves within the
Bocachico Contract area to be uneconomic at 31 December 2014. The
significant decline in oil prices at 31 December 2014 and the
resulting uneconomic nature of the proved and probable reserves
within the Bocachico Contract area will require the Company to
write down the carrying value of its Bocachico Contract oil assets
within its Statement of Financial Position at 31 December 2014
which could be material. Under current accounting standards, the
Company may reverse such impairment in the future if there is an
indication that the previously recognised impairment loss no longer
exists or has decreased.
-- All proved and probable reserves associated with the
Company's Llanos Basin properties were disposed of in December 2014
through the sale of the entire issued share capital of the
Company's wholly owned subsidiary, Colombia Energy Development
Company.
Estimated net proved and probable reserves of oil are as
follows:
Proved Probable Total
Bbls Bbls Bbls
(000's) (000's) (000's)
-------- --------- --------
Developed - - -
Undeveloped 19,758 4,563 24,321
--------------------- -------- --------- --------
At 31 December 2014 19,758 4,563 24,321
Developed 1,815 - 1,815
Undeveloped 44,837 54,412 99,249
--------------------- -------- --------- --------
At 31 December 2013 46,652 54,412 101,064
Stephen C. Voss, Global's Managing Director, commented, "The
decrease in our proved and probable reserves and related write down
of the Company's oil assets on its statement of financial position
at 31 December 2014 does not affect the Company's cash balance.
Given these sustained lower oil prices and the significant loss of
value in our reserves combined with the recent sale of our
Colombian producing properties, the company is reviewing options
for creating value for shareholders in 2015."
For further information please contact:
Global Energy Development PLC
Anna Williams, Finance Director
awilliams@globalenergyplc.com +001 817 310
www.globalenergyplc.com 0240
Northland Capital Partners Limited +44 (0)20 7382
Matthew Johnson / Gerry Beaney 1100
Notes to Editors:
The Company's shares have been traded on AIM, a market operated
by the London Stock Exchange, since March 2002 (AIM: GED). The
Company's portfolio includes exploration and developmental drilling
opportunities in Colombia, South America. The Company currently
holds two operated contracts in Colombia.
Proven and probable oil and gas reserves are estimated
quantities of commercially producible hydrocarbons which the
existing geological, geophysical and engineering data show to be
recoverable in future years from known reservoirs. The proved
reserves reported by RED, an independent petroleum engineering
firm, conform to the definition approved by the Society of
Petroleum Engineers ("SPE") and the World Petroleum Council
("WPC"). The probable and possible reserves reported by RED conform
to definitions of probable and possible reserves approved by the
SPE/WPC using the deterministic methodology. The information
contained within this announcement has been reviewed by RED. In
addition, the information contained within this announcement has
been reviewed by Mr. Stephen Voss, a Director of the Company, for
the purpose of the Guidance Note for Mining, Oil and Gas Companies
issued by the London Stock Exchange in respect of AIM companies
which outlines standards of disclosure for natural resource
projects. Mr. Voss is a Registered Professional Engineer in Texas
and has been a Member of SPE for 45 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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