Global Energy Development Share Discussion Threads

[geraldton1] 22/4/2013 14:13

What is going on here? Price has been really weak but they are still doing c1400 bopd a day and the directors were paying well north of 100p just a few months ago. The company needs to say something.

[rcturner2] 22/4/2013 13:15

I would say it looks we are headed to 70p.

[wooster4] 04/4/2013 13:10

morph - i'd rather they buy though than sell!

[mdara] 03/4/2013 10:38

Hyper
With a portfolio like mine one needs to retain a sense of humour )).

[hyperboreus] 03/4/2013 10:28

Very amusing mdara, GED shareholder(?) and still retained your sense of humour.

In respect of foreverhoping's comment, the track record of the director's share purchases is a little bit muddled really, it would appear that Voss has been the most astute over the last few years when compared to Faulkner but you would think that they must have some idea what they are doing, although I have questioned it many times in the last 12 months.

When you consider that the Bolivar and Bocachico contracts were signed in 1996 and 1994 respectively you have to seriously question the management of Global's assets.
The fact that the penny has finally dropped with regard to the urgency of actually getting as much as they can out of the ground before the contracts expire doesn't exactly strengthen their hand when seated around the deal table does it?

[mdara] 02/4/2013 23:06

Sheesh what were Northern Rock execs doin buying GED. Little wonder they went bust.

[morph7] 02/4/2013 22:52

Northern Rock plus other bank execs were buying just before the crunch.....

[foreverhoping] 02/4/2013 20:16

What confuses me a little is if the news is a little bleak right now, why would there have been so many director purchases of late? There must be optimism within the company?

[hyperboreus] 02/4/2013 20:07

Just to clarify things, my earlier post (1863) was in response to post 1862 which has now been deleted for some reason.

This article was posted today on oilbarrel.com



For pyemckay:

TABLE 1: SUMMARY OF LICENCES

Alcaravan (Llanos) 24,000 acres exp 2021
Bolivar/Catalina/Simiti/Salto (Middle Magdelena) 21,000 acres exp 2024
Bocachico/Torcaz (Middle Magdelena) 54,700 acres exp 2022
Rio Verde (Llanos) 7,073 acres exp 2034
Los Hatos (Llanos) 295 acres exp 2034

[philo124] 02/4/2013 15:31

Good article.

[pyemckay] 02/4/2013 15:19

when does global have to give up rights to the torcaz field.

thats worrying if they continue at this very slow pace.

[hyperboreus] 02/4/2013 15:07

Article in full for anyone interested:

Global Energy Development Learns From Its Initial CHOPS Setback And Seeks Farm-In Partner For Shale Development In Colombia
Compared to many of its peers, Global Energy Development is in an enviable position, with robust production of over 1,300 bpd that has kept the company cash flow positive for its ten-year run on AIM, and, until recently, it boasted 2P reserves of 118 million barrels, one of the highest on AIM.
Yet it's fair to say the £36 million market cap company, now a pure Colombia play after it last year sold out of Peru for US$5.4 million, has long struggled to convert this strength into value for shareholders. It produces from just a fraction of its reserve base from fields in the prolific Llano Basin while the bulk of its reserves, heavier crudes in the more challenging Middle Magdalena Valley, remain untapped.
In late 2011 Global decided to switch focus and seek to develop these heavier reserves. In part this was a reaction to the high costs of operating in the highly competitive and bottlenecked Llanos Basin, and in part a recognition that all the upside lies in the Middle Magdalena but where the clock is now ticking on developing the reserves – its 2P reserves were reduced from 118 million barrels to 87 million barrels last year to reflect this. The company, which last year recorded turnover of US$44 million and a net loss of US$2.12 million, didn't make much headway with this new strategy in 2012, however, and the development of its Bolivar and Bocachico contract areas is now a top priority for 2013.
Last year the focus was on the Torcaz field in the Bocachico block, where there are 2P reserves of 75 million boe of 14 degree API oil. Existing wells here flowed around 125 bpd before the well perforations were clogged by sand. Global's solution was to deploy a technology that is tried and tested in Canada's heavy oilfields, CHOPS (cold heavy oil production with sand) which extracts the oil as well as the sand using abrasive tolerant pumps.
This technology is something of a grind for the first six months or so as the sand is produced and separated at surface but then the wells tend to run clear and can produce strongly – there were hopes of lifting output to 350 to 450 bpd per well.
The first test of this was the Torcaz 5 well, with several abrasive-tolerant pumps tested. Successful sand and oil shows were seen but the company has been unable to sustain consistent production. Indeed, significant sand movement into the wellbore eventually overwhelmed the capacity of the pumps. This was, the company admits, a setback but says it was "not surprising to see some short-term calibration and engineering issues at this early stage".
It is now modifying its approach and plans to partially restrain initial sand production to help get the oil to flow. A newly-designed pump should arrive in Q2 and the company will then recomplete the Torcaz-3 well. There is a certain urgency to this now as the delay in accelerating the development plans at the Torcaz field resulted in a loss of significant 2P reserves due to end of contract life effects. This will only continue as the contract term draws closer.
Progress on the Bolivar contract area, where there's the potential for a large shale oil development, stalled last year while the company began the search for a farm-in partner. The company reckons the La Luna formation here shares similarities with the game-changing liquids-rich Eagle Ford Shale in Texas and notes that Shell and Exxon have entered adjacent acreage. Global hopes to conclude this process in Q2 2013 and the terms and credibility of a farm-out could be a catalyst for the stock in the coming months.
In the absence of momentum in the Middle Magdalena, the Llanos Basin properties remain a cornerstone of the company, although production here was impacted last year due to downtime associated with pump failures on the Tilodiran field.
Production was down five per cent overall in 2012 at 1,347 bpd. Here, higher operating costs are impacting margins due to water transportation costs from the Tilodiran field; this should be resolved going forward now the Colombian authorities have approved a long-term water injection scheme, which GED reckons should save US$400,000 a month. This will be a big help but it doesn't resolve the big issue: how to extract value for shareholders from that large reserve base in the Middle Magdalena, and how to do it quickly.

[snatander] 31/3/2013 15:57

Northland Price target: 186p

OIL & GAS: GLOBAL ENERGY DEVELOPMENT (GED.L); 101p/£36.5m BUY* - PT 186p

Anyone able to post note please

[snatander] 27/3/2013 23:00

Chairman's Statement

Chairman's Statement

Development of the Company's 2P reserves in its Bolivar and Bocachico Association Contract areas within the Middle Magdalena Valley in Colombia, South America remains the Company's top priority for 2013. During 2012, the Company elected to engage a financial advisor in connection with a farm-out or other business transaction involving the Company's Bolivar Association Contract ("Bolivar") in order to accelerate production and to better exploit Bolivar's large reserve base. This targeted increase in drilling activity mandates the deployment of additional and substantial technical expertise and operating man power to effectively undertake the management of this sizable shale oil development project. Interest has increased dramatically in shale oil generally throughout the entire international petroleum industry and specifically in the northern Middle Magdalena Valley Basin. The Company hopes to complete the partnering process in the second quarter of 2013 and is looking forward to working with an eventual partner selected to develop these significant oil assets.

[fuiseog] 27/3/2013 14:02

"search for the word CHOPS and didn't find anything."

You're not alone, GED haven't found anything viable yet -:)

We live in hope.

[on target] 27/3/2013 12:03

I confess I haven't read every word of the RNS fuiseog, but I did do a search for the word CHOPS and didn't find anything.

[fuiseog] 27/3/2013 12:02

Chops is still 'ongoing' on the Torcas 5 well. Why not read the RNS?

[barlisoflincoln] 27/3/2013 11:54

nice 32k buy is it a director?

[on target] 27/3/2013 09:49

Whatever happened to CHOPS? Have they given up on the idea?

[fuiseog] 27/3/2013 09:42

As a long term holder I'm very glad to see the following statement in the release -:)

"Past performance cannot be relied on as a guide to future performance."

'Cos the paint doesen't seem to be drying any faster.

I love the way they manage cash*, but the speed of operational change and development does not keep up with their ambitions. The market needs to see a resolution to the Torcas 5 well sand issue (during 2013? - do they need the whole year?), completion of the farm out (Q2), and see numbers that confirm the water savings are feeding through to the bottom line (interims in Sept? - or pre agm report?).

Last year we had a new presentation a few days after the March finals. If they've got a more positive story to tell it's time to repeat that.

Of course, for the optimists among us, it's a great time to top-up.


*that might be Harkin looking over their shoulder!

[rcturner2] 27/3/2013 09:33

Great buying opportunity. I picked up some more.

[wooster4] 27/3/2013 09:32

Now that the results are out of the way, I fully expect directors to resume their buying spree!