SOURCE: Harken Energy Corp.

March 28, 2006 12:39 ET

Global Energy Development PLC Provides Operations Update on Colombia

DALLAS, TX -- (MARKET WIRE) -- March 28, 2006 -- Harken Energy Corporation (AMEX: HEC) announced today that Global Energy Development PLC ("Global"), in which Harken holds 11,893,462 ordinary shares, representing approximately 34% of Global's issued share capital, has provided the following operations update.


The Tilodiran #1 and Macarenas #1 wells within the Rio Verde contract in Colombia both ceased production during the fourth quarter of 2005 due to casing failures and neither has contributed to production so far in 2006. These wells were first drilled over a decade ago by a previous operator and recompleted by Global; Tilodiran #1 in December 2004 and Macarenas #1 in January 2005. Workovers to restore production on these wells are unlikely to commence until the second half of 2006 due to a shortage of workover rigs and necessary downhole equipment.

Completion operations are underway on the new exploratory well, Tilodiran #2, within the Rio Verde contract. This well was successfully drilled to a final depth of 13,350 feet and intercepted six potentially oil productive zones. Global is currently testing the Upper Massive Ubaque reservoir, which is the first of several production tests on this well. A current natural flow rate from this single zone was approximately 1,125 barrels of oil per day (bopd) plus gas. A full-scale production test has yet to be fully completed. Global anticipates announcing results periodically throughout the remainder of the testing process.

Global experienced production outages within the two producing fields of its Alcaravan contract in Colombia from the beginning of February 2006 to early March 2006 related to temporary surface equipment repairs and downtime. As of mid-March 2006, production levels were returned to normal and as of today production is running at improved levels.

Since mid-March 2006, production has been positively influenced by the successful improved recovery program underway within the Colombian Bocachico contract. Global commenced the pilot test phase of a cyclic carbon dioxide ("CO2") injection project in late 2005 on the premise that the effect of CO2 injection would be to swell the oil in place thereby reducing its density and viscosity, improving overall oil mobility and potentially increasing production and reserve recovery rates. Global successfully injected 311 tons of CO2 into the Torcaz #2 well, and this well absorbed the CO2 for two weeks and was then opened to production. The improved production rate from this well is in-line with the forecasts contained within the engineering feasibility study conducted by an independent reserve engineering firm prior to the project's implementation.

Since the beginning of the year, Global's production from the Colombian Los Hatos and Bolivar contracts has been stable and in line with Global management's expectations.

Global management's production expectations for the year have been formulated using an independently prepared reserve report dated December 31, 2005 which forecasts total 2006 production, net to Global, of approximately 500,000 barrels of oil. Production, net to Global, on an annualized basis in 2006 is below Global management's expectations for the year. However, due to ongoing activity, as detailed above, Global management expects the shortfall in production to be made up during the remainder of the year.


Within the Colombian Caracoli contract, reprocessing of vintage seismic test lines has yielded favorable results and will now allow full scale reprocessing of all existing seismic data. Global is planning an initial seismic program designed to further define the Tasajero anticline located on the west side of the Caracoli contract area. It is anticipated that the seismic program be executed in the second half of the year and will provide sufficient information to select a drilling location that will adequately test the Tasajero prospect in the first half of 2007.

A program to delineate the El Miedo field within the Colombian Luna Llena contract, involving the acquisition of new seismic and the drilling of at least two wells, is currently being designed. It is expected the delineation program design will be completed within the first half of the year and logistical operations to deliver and supply the necessary equipment to the El Miedo field area will commence early in the second half of the year.

Evaluation of geologic features similar to the El Miedo field is now underway throughout the Valle Lunar Technical Evaluation Agreement area. Specific features have been identified and further data acquisition and analysis is currently being planned.

The design of the seismic acquisition program for the Bretaña field area within the Peruvian Block 95 Area contract has been completed and submitted for the necessary environmental review process. Global will soon begin preparing a tender to solicit bids from qualified seismic acquisition contractors with an expectation that seismic will be acquired in the second half of 2006.

The Panamanian government is currently reviewing an advanced draft contract for the Garachine Block Area which will convert the Technical Evaluation Agreement into a long-term contract. Final completion of the contract is expected within the first half of this year.

Capital expenditures for Global in 2006 are currently projected to be approximately $23 million consistent with the capital expenditures included in the reserve report prepared by an independent reserve engineering firm. This figure may be revised downwards during the year if delays in scheduling equipment continue. Conversely, it may be revised upwards if the results from the Tilodiran #2 well prompt Global to accelerate the drilling of additional wells on the Rio Verde contract area in the second half of 2006.

Global's Managing Director's Overview

Commenting on Global's operations to date in 2006, Stephen Voss, Managing Director of Global Energy Development PLC, said, "Although Global is frustrated with the mechanical problems and continuing delays in scheduling equipment that have hampered Global's production growth so far in 2006, Global remains hopeful of remedying these problems and confident of building on production elsewhere within Global's portfolio.

"Global is currently testing one of several potentially productive formations within the Tilodiran #2 well. Even though a full-scale production test has yet to be fully completed, the Upper Massive Ubaque is naturally flowing 16 API gravity oil at a rate of approximately 1,125 bopd plus unmeasured natural gas. Global has installed a 48/64ths choke in order to restrict the flow rate to match the available surface processing and storage equipment. Global is encouraged by this early result and will test each of the remaining prospective zones over the next few weeks in order to assess the aggregate production rate potential of this well.

"Global is also encouraged by the early production test data obtained from our C02 improved recovery project located in our Torcaz field. The Torcaz #2 well is responding in line with previous expectations and additionally, the Torcaz #3 well is showing evidence of C02 recovered in association with formation oil indicating more effective reservoir continuity than anticipated of the Mugroso producing formation. If this proves to be the case it will provide further basis for the expansion of Global's C02 program in the Torcaz field.

"Global continues to be convinced of the potential of its portfolio of contracts and believes this will support a very active drilling program over the next few years," Stephen Voss concluded.

Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various holdings. Additional information may be found at the Harken Energy Web site, Please email all investor inquiries to

Certain statements in this announcement including statements such as "potentially," "planning," "believes," "anticipates," "expects," "projects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, further testing and analysis, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.

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