Global Energy Pleased with Luna Llena 2 Test Results

Global Energy Development PLC on Tuesday announced positive test results from its Luna Llena 2 well and an encouraging outlook for its Colombian Luna Llena Exploration and Production Concession contract.

The two key objectives of the two well Luna Llena drilling program were to determine the Carbonera C3 formation production capacity in the Luna Llena area and to acquire additional data that could be used to assess field wide reserve potential, identify an appropriate future data acquisition strategy as well as assist in designing a field development plan.

The Luna Llena 2 well was drilled directionally to a total depth of 2,980 feet to reach the El Miedo sandstone in the upper Carbonera C3 formation. In the Luna Llena 2 well, oil shows and oil stained cuttings were recovered in the drilling process from the upper C3 El Miedo sandstone. Using nuclear and resistivity measurement devices the "El Miedo" sandstone was determined to be a high porosity reservoir consisting of clean, well developed sands and favourable calculated oil saturation. The oil saturation calculations and other field data indicated the El Miedo reservoir has the potential to flow a high percentage of oil.

The downhole pressure measurements and fluid volumes recovered at the surface during the initial test period of approximately one hour demonstrated a 15 foot perforated section of the El Miedo reservoir produced at the rate of 1,000 barrels of total fluid per day. Over an additional test period of 13 hours the Base Sediment and Water ('BS&W') ratio averaged 55% with a low BS&W ratio of 8%. The water recovered in the test was almost entirely drilling fluid indicating the well was continuing to clean up due to the nature of the unconsolidated formation.

Based upon data collected in these tests, the El Miedo formation yielded a well Productivity Index ('PI') which serves as a very encouraging indicator of the potential production capacity of the Luna Llena 2 well.

The oil produced during testing was of a medium quality with an API gravity of 19 degrees and a sample of which is now undergoing laboratory analysis to determine its complete characterization.

The Company now intends to appoint an independent technical consultant to estimate the reserves associated with the Luna Llena property which will be used to design a field development program.

Stephen Voss, Global's Managing Director, said:

"The measured reservoir productivity of the Luna Llena 2 well exceeded the Company's expectations and demonstrates the El Miedo reservoir to be productive and an attractive developmental opportunity. The Company will now integrate all the data collected over the last two months in order to estimate the impact of the delineation program on future reserves and production. The Company is very optimistic about the future of this property."