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Global Energy Development terminated farm-out agreements for Bolivar and Bocachico AC areas, Colombi


AIM-listed Global Energy Development has announced that the Company has been informed that the wholly-owned subsidiary of Everest Hill Energy Group elected to exercise its option under the farm-out and joint operating agreements to terminate and release its rights and obligations with respect to the Company's Bolivar Association Contract area and its Bocachico Association Contract area in the Middle Magdalena Basin due to the significant fall of the price of crude oil. 

All future obligations by Everest to undertake the future funding of a work program with respect to the Contract Areas, including an obligation to pay all future costs and expenses incurred with respect to the proposed operations, have been released with effect from 12 December 2014 in exchange for the return of the 50 per cent. interest in Global's interest in the Contract Areas. 

Stephen C. Voss, Global's Managing Director, commented, 'Given the significant decline in oil prices, we fully understand Everest's decision not to pursue drilling at this time and to exercise their option to terminate both farm-out agreements. Global has a robust balance sheet and is assessing its options for increasing value for its shareholders and will update the market in due course.'