Global Energy Development Share Discussion Threads

[dukedosh] 30/6/2014 12:26

Any one from here at the AGM today?

[opodio] 30/6/2014 10:51

Youre welcome

[philo124] 30/6/2014 08:10

Yep, thanks.

[opodio] 30/6/2014 08:03

Good start

[opodio] 30/6/2014 07:13

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




SUPERB UPDATE


Going to explode at some point soon imo. I keep adding on dips and happy to wait. Don't get this sort of cash generation and gearing to rising oil price in a growth market that often.

[opodio] 26/6/2014 10:41

Any chance Shell is sniffing this one butt again?

[dukedosh] 26/6/2014 10:22

I think the Columbians are better than that. It should have the opposite effect and they should perhaps encourage more exploration and development of their natural resources through tax breaks and govt assistance.

[paleje] 26/6/2014 00:42

Thank you for repeating my article, gentlemen, but do you think Colombia will meddle with the tax rate as we near 2020? If it was me, and I could see a source of income disappearing, I would be looking to squeeze as much as possible from it or even hijacking it, politics can turn events very quickly and unexpectedly.

I don't suppose it will affect our share price at this stage but it certainly might later.

[dukedosh] 25/6/2014 17:04

Another interesting article. Bodes well for Columbian producers:

Higher world oil prices from Iraq crisis offsetting Colombia's export losses: govt

[dewtrader] 25/6/2014 14:05

Unless major new oil fields are found, Colombia will run out of fuel within six years. The government fails to take action necessary to prevent the potential collapse in employment, exports and development.

In 2012, the Colombian business and economics newspaper Portafolio released two significant and seemingly contradictory news articles. The first published in March bore the headline "Without Oil, Colombian Exports Don't Grow" whilst the other, printed in June read "Oil and Oil Derived Imports Continue to Increase."

Any reader could have been forgiven for thinking they were talking about two different countries, two different decades or even two different newspapers with distinct ideologies. Yet it was the same paper running articles just three months apart, reflecting on something which is seriously wrong in Colombia. It is worth stating that these articles, although carrying somewhat misleading headlines also contained a strong element of truth that anyone with links to Colombia should be concerned about.

Colombia, as of February 2014, has 2.2 billion barrels of proven crude oil reserves, a figure which means that the country ranks fifth in South America.

Most of these reserves are allocated to the export market which is currently the fourth most important in Latin America. Export growth has been nothing short of staggering in the last nine years and Colombia has fed its oil exports since 2004 by increasing production by some 77% (that equates to 400 thousand barrels per day).

This year's target is 1.2 million barrels per day and will again predominately feed into the export market – a fact supported by the production to (national) consumption ratio published by the Oil and Gas Journal last year which indicates that for every 3.31 barrels produced, only one stays in Colombia.



VERY GOOD FOR GED

[paleje] 25/6/2014 11:07

Article from yesterday re the effect global oil price increase is having on the Colombian oil market:-



I was wondering, as the country approaches 2020 or thereabouts with oil resources declining, is there much risk they'll increase tax to squeeze more out of what remains.

[philo124] 25/6/2014 09:14

Still holding.

[dewtrader] 25/6/2014 09:09

The worsening conflict in Iraq poses a bigger risk to long-term oil prices than traders anticipate, according to banks from Citigroup Inc. and Bank of America Corp.

duction.

"The market has worked itself into an extraordinary level of complacency," Seth Kleinman, European head of energy research at Citigroup in London, said by phone on June 19. "The reality is that Iraq matters now and, given what a big component it is of global production growth, it matters possibly even more for the future."

Brent reached a nine-month intraday peak of $115.71 a barrel on June 19 and settled yesterday at $114.12. December 2018 futures of the grade have advanced 4 percent since ISIL seized Mosul, settling at $98.86 a barrel. The North Sea grade is used to price more than half the world's oil, including Iraq's Basrah Light grade.

[bigdazzler] 24/6/2014 12:25

Not Simon Thompson as checked investors chronicle and no article released. Also he has stated he is on holiday for the week so I wouldn't expect any further articles from him.

Let's hope for a nice bullish run

[dewtrader] 24/6/2014 12:06

Oil Price Seen Rising Faster Than Market Shows on Iraq


John Kerry: ISIL Threatens America and the West
Iraq in Crisis: Can Kerry Accomplish Anything?
The worsening conflict in Iraq poses a bigger risk to long-term oil prices than traders anticipate, according to banks from Citigroup Inc. and Bank of America Corp.

[dewtrader] 24/6/2014 11:51

Simon Thompson does his thing later imho

[dewtrader] 24/6/2014 11:47

Shares in Global Energy Development (GED: 78p), the Latin America-focused petroleum exploration, development and production company with operations in Colombia, have trended lower to a major support level following results at the end of March. At this depressed valuation the company is being valued at only £27m, or almost half net asset value of £52m.


Nice with oil price rising swiftly


On this basis of reaching parity i would target 170p

[dewtrader] 24/6/2014 11:45

Someone keen today. Must be imminent happenings

[opodio] 24/6/2014 11:40

Bid coming finally?

[waleoilbeefhooked] 24/6/2014 11:37

I think we need Simon Thompson to give this another bit of help .....

[hyperboreus] 22/6/2014 13:09

No one can dispute the rise in the price of oil in the last 3 months in particular but the current WTI price is $107 and furthermore Global average rate will be around 10% less than that due to to lower grade stuff that is produced so a bit misleading to suggest that GED will receive 30% more than what Equity were basing their figures on but I take your point paleje that the oil price spike is obviously good news for Global.

I just hope that production has continued without any glitches in the last 3 months and that further positive news will be coming our way next month after the current test results are announced.

[paleje] 22/6/2014 10:11

There was a small piece in todays ST about investing in the energy companies, with the various conflicts and threats in place and escalating around the world and price of oil around $115.

An Equity Developments note earlier this year, according to IC, used an oil price average of $82.2 and came up with a current year forecast for GED of revenue $30m and EPS of GBP 7.2p making us appear cheap with a PE around ~10.

How undervalued are we now, with the oil price a third higher and 2 farm-out deals in the bag, one of which should be reporting within weeks.

[paleje] 13/6/2014 10:37

I suppose the increase in oil price won't be doing us any harm.

[paleje] 11/6/2014 11:07

Northland Capital reiterated buy advice this morning 75/181.