Global Energy Development PLC, the AIM listed Latin America focused petroleum exploration and production company, which operates in Colombia through its wholly-owned subsidiary Harken de Colombia Limited, announces a combined test result for the Tilodiran 3 well within the Colombian Rio Verde contract. Previous testing had already proved four productive zones within three different formations in the well.
An electric submersible pump was installed in the Tilodiran 3 well at a depth of 7,198 feet to increase the pressure drawdown and thus facilitate the clean up of the perforations in the Mirador (11,652 to 11,662 feet), Ubaque (12,836 to 12,842 feet), Lower Gacheta (12,744 to 12,748) / (12,806 to 12,814 feet) and Middle/Upper Gacheta (12,672 to 12,680 feet) / (12,690 to 12,694).
The production test of all the zones within the three formations is continuing and the well continues to clean up. The well is currently producing at a rate of approximately 1,280 barrels of oil per day ("BOPD") with 9% basic sediment and water ("BS&W") that analysis shows as having a significant content of completion fluid and is expected to further reduce as the well continues to clean up. The combined gravity is 17.8 degrees API and the current gas/oil ratio ("GOR") is 245 scf per barrel.
Application has now been made to the Colombian Ministry of Mines and Energy ("the Ministry") to allow the Company to produce the formations on a commingled basis. Based upon detailed analysis of the well data obtained to date, and the provisions of the Colombian Petroleum Code, management believes appropriate conditions exist for such approval to be forthcoming.
The Company averaged gross production of 1,169 BOPD for the first seven months of 2008 so the addition of the Tilodiran 3 well will provide a significant uplift to the Company's overall production volumes.