Hi,

There was a thread created on TMF about Global Energy Development (GED), yet another company I know absolutely nothing about so I decided to try and fix that.

First off, Global are quoted solely on the AIM and so are not ISAable. (so feel free to abandon reading now and spare yourselves some pain.....)

The website is: http://globalenergyplc.com/.

The latest presentation is here and is the best place to start.

What caught my eye initially was that they have 2P reserves of 147m BOE, against a tiny market cap of £24m so either Mr Market has been asleep or else is very skeptical about how much that 147m bbls are really worth. To put it in perspective, have a look at page 9; they say that they have the 3rd largest reserves of all E&P companies on the AIM.
1. Bankers Petroleum (BNK), with a market cap of £1.1bn for 214m 2P reserves, which gives a market cap of £5.14 per barrel.
2. Regal (RPT), with a market cap of £90m for 151 2P reserves, which gives a value of £0.59 per barrel.
3. Global , with a market cap of £24m for 147m 2P reserves, which gives a value of £0.16 per barrel.
(Note: the presentation is from July so the market caps may have changed a little since then)

The 147m BOE have been independently valued as having an NPV@10% of $5bn! (In the presentation and the annual reports, they frequently make the point that all figures and plans have been independently verified, probably a very deliberate attempt to overcome what I assume is Mr Market's deep skepticism)

Assets:
They are focused on Peru and Colombia.
In Peru, they have block 95, with 21m bbls 2P
In Colombia, they have:
     Bochachica, with 78.4bbls 2P
     Bolivar, with 37.3 bbls 2P
     Rio Verde, with 4.5bbls 2P *More on this later
     Alcaravan & Los Hatos with 4.8bbls 2P

They have relinquished the Panama acreage since July.

Financing
They are currently producing just over 1000 bopd, which gave them a profit before tax of $2.7m last year so enough to keep the lights on. The intention is to spend $110m cap ex over the next 3 years, which they believe that they can finance through…

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