Global Nixes Plans for Third Luna Llena Well

Global Energy Development PLC issued an update on its drilling operations within its Colombian Luna Llena Exploration and Production Concession contract.

The Luna Llena 1 well was drilled vertically to a total depth of 3,229 feet. The well was deepened from its originally planned depth of 2,550 feet with the intent of reaching basement and testing a package of Carbonera C-7 sands, which from logs indicated potential mobile oil saturations. However, on further investigation the C-7 sands tested fresh formation water and were isolated. A Drill Stem Test ('DST') was then run on the 'El Miedo' sandstone in the upper Carbonera C-3 formation. The 'El Miedo' sandstone encountered was thinner than expected and it also tested fresh formation water; albeit with small traces of hydrocarbons. The well has now been suspended pending results from other future wells and any seismic data acquisition.

Due to the results and after analysis of the Luna Llena 1 well the Company has modified its drilling plans on the Luna Llena field. The location of the second well, Luna Llena 2, has been revised and will be drilled directionally to reach the 'El Miedo' sandstone in an updip position relative to the existing El Miedo 4 well. This well has now been spudded and drilling and completion operations are expected to take 20 days. Due to the additional drilling and testing period that was required for the Luna Llena 1 well and the narrow timing to release the drilling rig before the start of the rainy season, which is expected to commence shortly, the Company has also elected not to proceed with a third well at this time, namely the re-entry of the existing El Miedo 4 well.

Commenting, Stephen Voss, Global's Managing Director, said:

"Whilst the result of the Luna Llena 1 well was disappointing it has provided us with valuable reservoir information and led us to modify our plans for the Luna Llena field which should increase the likelihood of success of the Luna Llena 2 well. The outcome of the Luna Llena 2 well combined with the results of the first well should also assist the Company in designing an appropriate seismic acquisition program as a possible next step in assessing the potential of the Luna Llena field."