The Company has previously reprocessed existing seismic over both contract areas and made a preliminary interpretation. The acquisition and interpretation of the new seismic data will enable the Company to validate the previous interpretation and establish the optimum position of the next wells scheduled to be drilled on the contract areas, these being the Los Sauces 1 well within the Los Sauces contract and the Tilodiran 3 well within the Rio Verde contract. The acquisition of the new 2D seismic is expected to take 40 days, with processing and interpretation taking an additional 50 days.
The Los Sauces and Rio Verde contracts are contiguous with one another with the Rio Verde contract containing the Tilodiran 2 well, which was successfully placed on continuous production at the end of July 2006 and is currently producing approximately 700 barrels of oil per day ("bopd").
Global currently holds in excess of 5.2 million acres through nine contracts in Colombia and Peru, an exclusive Technical Evaluation Agreement (TEA) in Colombia and a concluded exclusive TEA in Panama. Global's portfolio comprises production, developmental drilling and workover opportunities and several high-potential exploration projects.
Ryder Scott Company, LP, the Company's independent engineers, reported that as at 31 December 2005, proved plus probable reserves ("2P reserves") net to Global totaled 17.5 million barrels of oil and proved plus probable plus possible reserves ("3P reserves") net to Global totaled 67.5 million barrels of oil. Based upon an approximate Brent Price of $58 per barrel, this being the closing price as at 31 December 2005, Future Net Revenues ("FNR") for the 2P reserves net to Global totaled $621 million and FNR for the 3P reserves net to Global totaled approximately $2.8 billion.
Ryder Scott reported that as at 1 July 2006 the total risked, mostly likely case recoverable barrels of gross resources for the Company's exploration properties was 218.6 million barrels of oil equivalent.
Proven and probable oil and gas reserves are estimated quantities of commercially producible hydrocarbons which the existing geological, geophysical and engineering data show to be recoverable in future years from known reservoirs. The proved reserves reported by Ryder Scott conform to the definition approved by the Society of Petroleum Engineers ("SPE") and the World Petroleum Congress ("WPC"). The probable and possible reserves reported by Ryder Scott conform to definitions of probable and possible reserves approved by the SPE/WPC using the deterministic methodology.
This information has been reviewed by Ryder Scott.
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