Commenting on Global's scheduled activity for 2006, Stephen Voss, Managing Director of Global Energy Development PLC, said:
"We have made excellent progress over the last year in adding high-potential exploration assets to our legacy, producing portfolio and we are now progressing them as rapidly as possible towards drilling.
Scheduled activity throughout the remainder of 2006 includes seismic programs on four or five of our exploration prospects and the drilling of up to seven more wells.
We have already had a successful start to our 2006 drilling program with the first well of the planned eight, Tilodiran 2 within the Colombian Rio Verde contract, going to significantly increase our gross daily production when it is placed on continuous production within the next few weeks.
Five of the seven remaining scheduled wells are in the identified Primavera field, formerly known as El Miedo, located within our Colombian Luna Llena contract. They represent relatively low-cost and quick drilling due to their shallowness. Negotiations for a rig are already advanced with the required rig more readily available and not subject to such inflationary costs."
Drilling and Exploration
The Company plans to drill or spud up to seven more wells in the Llanos region of Colombia during the remainder of 2006. The Llanos region is subject to rainy seasons, and so delays to the drilling schedule may occur especially if the current unfavorable weather conditions continue. Nevertheless negotiations for the rigs for all these wells are far advanced.
Due to the success of the first well drilled in 2006, the Tilodiran 2 well located within the Colombian Rio Verde contract, the Company hopes to commence rig mobilization to the next exploratory well on this contract area, Tilodiran 3, late in the third quarter of 2006.
In addition, as the Director's believe that the Tilodiran field is part of a larger trend to the north into the newly signed Colombian Los Sauces contract area, the first exploratory well on the Los Sauces area is scheduled to be spudded late in the fourth quarter of 2006.
The remaining five wells due to be drilled are located in the identified Primavera field, formerly known as El Miedo, within the Colombian Luna Llena contract area. These wells represent relatively low-cost and quick drilling due to the shallowness of the wells and the required rig is more readily available and not subject to such industry inflationary costs. Presently, it is anticipated the drilling rig will arrive in the field area early in the fourth quarter and the five wells completed and placed on long term production test by the year end or very early 2007. The drilling operations in the Primavera field are based upon a delineation program designed to define the limits of what the Company feels is the northeast portion only of the Primavera field. It is expected that the delineation drilling, together with new 2D seismic to be acquired in the next few months, will assist the Company's independent reserve engineers, Ryder Scott Company, LP ("Ryder Scott"), in estimating at least the partial extent of the oil volumes in this area.
The other seismic programs to be carried out during the second half of 2006 are focused on the Los Sauces contract area, the Colombian Caracoli contract area, where the Company is currently reprocessing and mapping and aims to drill the first well early in the second half of 2007, and the Bretana field within the Peruvian Block 95 contract area, where seismic will be acquired in the fourth quarter of 2006 weather permitting. Additionally, seismic may be acquired this year in Panama if the Garachine contract is signed prior to July 2006.
As previously announced the Tilodiran 2 well should be placed on continuous production by mid to late June 2006, weather permitting, at a rate of approximately 1,100 boepd after which point the Company's gross daily production should be upwards of 2,000 bopd. The Company's other currently producing wells, located in the Colombian Los Hatos, Bolivar, Bocachico and Alcaravan contract areas, have exhibited stable or marginally improved production levels over the last two months.
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