Global Energy Development, the petroleum exploration and production company, has said that Ecopetrol, the state-owned Colombian oil company, has notified a commerciality declaration on its Cajaro-1 well, following a technical analysis.
As a result, Ecopetrol now holds a 50% working interest in the Cajaro-1 subject to Global's recovery of 50% of costs as contractually defined. The extent of the commerciality area surrounding the Cajaro-1 well remains subject to additional discussions between the Company and Ecopetrol. This is the first time in the Company's history that Ecopetrol has declared one of its wells commercial.
Global continues to have a 100% working interest in all of its other Association Contracts and has had no other indications of a commerciality election by Ecopetrol regarding the Company's other wells or properties. The Board believe that the declaration of commerciality over Cajaro-1 has no material effect on the Company.