Global holds six development contracts, five in Colombia and one in Peru. These contracts range from fully developed and producing oil, to the earliest stages of exploration, thus balancing the company’s portfolio between exploration, development and production opportunities. As of December 2009, Global held 147.1 million barrels of oil equivalent (BOE) in proved plus probable reserves. With possible reserves added in, the total is 272.9 million BOE.
Of the company’s three contracts in the Llanos basin area of Colombia, one is fully developed and producing oil; a second is at the stage of drilling exploratory wells, with several drilling projects for 2010 and 2011. For the third contract, and for two additional Colombian contracts in the Middle Magdalena basin, the company is in the process of setting up 3D seismic exploration projects.
In their September 2010 interim report, the company reported that profits were up 63% over the previous year, based largely on oil price recovery. This report also described Global’s ambitious 3-year plan to accelerate exploration and development of its holdings, which includes drilling 13 new wells and re-entering one well, and obtaining 3D seismic analysis of two contracts, as well as building facilities to exploit discoveries. Global anticipates that this 3-year plan will increase its proven reserves by approximately 200 million BOE in proved reserves (current total is 60.8 million BOE).
Global Energy Development has one contract in Peru, which is poised to enter the development stage. On 13 December 2010, share prices rose 15% upon the announcement of an agreement to farm-out 60% of Global’s interest in the Peruvian contract to Gran Tierra Energy, which will assume 100% of the operating costs. Global retains a 40% interest in the contract.
Shares of Global Energy Development Plc (GED) are listed on the London Stock Exchange’s Alternative Investment Market and were at 110.00 p as of 07 January 2011.