Global Energy Development PLC announced an update on the operations of the Catalina #1 Simiti formation in the Company's Bolivar Association Contract located in the northern section of the Magdalena Valley in Colombia, South America. On 31 July 2014, the company announced low rates of fluid recovery from the formation due to the presence of an emulsion substantially blocking most reservoir fluids from reaching the wellbore and detailed a working plan to remove these blockages. While surging efforts over the past few weeks have continued to recover stimulation water injected into the well during the fracturing process, recovery is not at a rate which is satisfactory to the company.

The surging process has not proven effective in breaking down the emulsion or flow barrier within the wellbore, so the company has decided to temporarily shut in the well. The company believes it is advantageous to pause ongoing capital costs with the expectation that formation oil will naturally move back towards the wellbore and the emulsion will organically breakdown while formation and wellbore pressures equalise. In the meantime, the company will begin to plan for its next workover project in the Bolivar Contract area.

Using information gathered from the Simiti project, specifically the presence of significant natural fracturing, the company does not expect to utilise high-pressure and high-volume fracturing in its next project.