Global Energy Development is still progressing with its cold heavy oil production with sand (CHOPS) recompletion project on the Torcaz-5 well within its Bocachico Contract Area in the Middle Magdalena Valley of Colombia, South America.

Operations commenced in November 2011, and the Company successfully cleaned out the previously drilled Torcaz-5 wellbore by removing the original existing gravel pack. After effectively completing the well clean-out, a bridge plug was then installed at a depth of 8,020 feet to shut off and isolate the Lower Esmeralda formation in order to control possible water influx. Additional perforations between 7,632 and 8,020 feet were then added in the Lower 'A' Mugrosa formation.

The Company is currently in the process of modifying the pump in order toattain optimum depth for the targeted Mugrosa perforations and optimum fluid level production to fit pump capabilities.

The Torcaz-5 was originally drilled in 1999 and previously tested at sustained rates of 300+ barrels of oil per day from the Mugrosa formation before sanding up using a conventional non-sand tolerant pump. Other operators in Colombia within the Middle Magdalena Valley are also producing oil out of the Mugrosa formation with estimated sand cuts of less than 5%.

Steve Voss, Managing Director, commented: 'We are learning a great deal during this first phase of the CHOPS test on Torcaz 5, and we are confident the mechanics of implementing CHOPS will be successfully achieved as we progress with industry consultants.We will continue to keep our shareholders apprised of our progress in this important project.'

Tags: Global Energy Development