Fox Business - Latest News - Global Energy Development Contracts Weatherford International for Cavity Pump

Global Energy Development PLC (GED.LN), a South America focused petroleum production and development company with operations in Colombia, said Wednesday it has contracted Weatherford International (WFT) for a progressive cavity pump at its Torcaz number 5 well.

MAIN FACTS:

-The Company will test the well to analyze oil and sand production to determine the final separation facility design.

-The Company has committed to the workover rig required to undertake well operations and the rig began moving to the Torcaz field yesterday.

-Workover operations are estimated to begin within 3 to 5 days.

-Well testing is expected to begin in mid July.

-Ongoing oil production operations in the Rio Verde field experienced lifting equipment outages and the Company was required to perform a workover operation on the Tilodiran number 2 well in order to replace a damaged pump.

-Production from this well was offline for approximately 65 days while a workover rig was contracted and moved in but has been restored following the pump replacement.

-In addition, the Tilodiran number 3 well suffered downtime, but the Tilodiran number 3 is currently producing naturally at improved stable rates.

-Even with these outages, the Company continues to anticipate that revenue for the six months ended June 30 will be in excess of the prior year interim period.

-Lastly, operations to convert the existing Rio Verde number 2 well into water injection service for the Tilodiran field were slightly delayed while the workover rig was utilized for the Tilodiran number 2 workover.

- The Rio Verde number 2 project is now currently underway and is expected to be completed in July thereby reducing Llanos water disposal costs.

-This project is expected to reduce water disposal costs per barrel of water from approximately $5.00 to approximately $1.00 providing monthly savings of over $250,000 per month.