Pumped: Global Energy is targeting a production rise in Columbia
Global dances to Latin beat
Global Energy Development, a UK-listed oil group focused on Latin America, is expecting a sharp increase in production this year once its Colombian fields come on stream.
Additional output will come from the Los Hatos site that adjoins the producing Palo Blanco field within the Alcaravan contract area. Further drilling and workovers at the Rio Verde field will also help drive production in the coming months, according to the company.
"Production for 2005 is expected to be materially above what was achieved in 2004," Global Energy said in a statement to be issued at its annual general meeting today.
The majority of the anticipated increase is expected to come in the second half of 2005.
Global has bolstered its acreage position this year with the addition of an exclusive contract for Block 95 in Peru and an exclusive Technical Evaluation Agreement for the Valle Lunar Area in Colombia, which together total approximately 3.4 million acres.
"We anticipate we will further enlarge our portfolio during the remainder of 2005 beyond the 5.1 million acres currently held through six contracts in Colombia and Peru," the company said.
The group is also expecting improved pricing following a new crude oil sales contract it signed with Brazil's Petrobras last month.
Further, Global Energy said it has hired independent engineers, Ryder Scott, to review the reserves potentials of its various assets in Peru, Panama and Colombia.