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GLOBAL ENERGY DEVELOPMENT Well Undervalued And As Yet Untouched By The B/B Herd (GED)     

goldfinger - 28 Apr 2005 16:19

Been looking at this one ever since results were published back on the 7th april. Its both an Oil Explorer and Developer and just throws off cash and makes a profit. I wouldnt initialy go into it because the shares were very tightly held especially by the US Oil Company Harken Energy I think they had around 85% of the share equity and the stock was not very liquid, but thats changing as Harken sells off shares into the market especially to the Large Institutions. In fact its just sold another tranch off today.

It really as a lot going for it and since the results as been tipped by two Brokers Teather and Greenwood and Equity Development) as strong Buys but the good thing is that the price as not yet really moved, the city have not caught onto this one yet and this is an ideal opportunity to get on board. Its also won new contracts and its NAV estimated short term to be 367p, long term 729p is up against a share price of only 161p. The P/E for the company for 2005 is only 6 and for 2006 a mere P/E of 4, compare that to some of the Blue Skers around and it is amazingly cheap. The institution Fidelity have also taken a big stake in the last couple of days and those boys know what they are doing.

Last Results to 31st December 2004.


Financial Highlights



Revenues up 28% to $10,974,000 (2003: $8,556,000)



Gross Profit up 65% to $5,349,000 (2003: $3,239,000)



Profit before tax up 292% to $3,127,000 (2003: $797,000)



No debt as at 31 December 2004



Finding cost of approximately $5 per barrel in the three years ending 31
December 2004



107% increase in Capital Expenditure budget for 2005 (2004: $8,700,000)

- fully funded from cash available and cashflow from production


Operational Highlights



2 exclusive contracts signed in Colombia in 2004 and another exclusive
contract in Peru added post the year end



Portfolio now much enlarged and prospect rich - trend towards exploration
against backdrop of established production

- 6 contracts and 1 pending contract covering approximately 3 million
acres in Colombia, Peru and Panama

- 100% ownership of all contracts



Production widened to 10 wells from 4 contracts as at 31 December 2004

- Record daily production of 2230 bopd from 11 wells as at 3 April 2005



Multiple exploration prospects within enlarged portfolio in all 3
countries already independently reported on

- First exploration expenditure since flotation on properties held under
contract to occur in 2005



Anticipate signing at least 2 additional exclusive contracts or Technical
Evaluation Agreements during the remainder of 2005

Director Speak.

Commenting of the results for 2004 and progress post the year end, Stephen Voss,
Managing Director, said:



'We are very optimistic about Global's position within the oil industry. We
identified many years ago three pre-eminent countries in which to operate -
Colombia, Peru and Panama - that have continually offered improved industry
terms and economic and political stability. All three continue to have few
independents operating in them and as a consequence Global continues to maintain
its first mover advantage and the opportunity to acquire additional attractive
acreage.



We have significantly enlarged our portfolio since our flotation three years ago
and now have a much diversified portfolio offering multiple prospect
opportunities in addition to established production. This production throughout
2004 against historically high oil prices resulted in record financial results
for the year.



Our production and strong-pipeline of near-term production allows the Company to
continue to build on a solid financial base whilst beginning to pursue the
considerable exploration prospects under contract and pending contract which the
management believe are capable of significantly enlarging and transforming the
Company going forward.'


Forward Outlook

We are very optimistic about Global's position within the oil industry. We
identified many years ago three pre-eminent countries in which to operate -
Colombia, Peru and Panama - that have continually offered improved industry
terms and economic and political stability. All three continue to have few
independents operating in them and as a consequence Global continues to maintain
its first mover advantage and the opportunity to acquire additional attractive
acreage.



We have significantly enlarged our portfolio since our flotation three years ago
and now have a much diversified portfolio offering multiple prospect
opportunities in addition to established production. This production throughout
2004 against historically high oil prices resulted in record financial results
for the year.



Our production and strong-pipeline of near-term production allows the Company to
continue to build on a solid financial base whilst beginning to pursue the
considerable exploration prospects under contract and pending contract which the
management believe are capable of significantly enlarging and transforming the
Company going forward.ENDS.

Conclusion.

Way undervalued in my eyes and a lot of others in the industry aswell. The future is very exciting. Remember its not a Petrel or a White Nile so dont expect fireworks. Its got an high beta and the shares are still relatively tightly held. Further news flow will move the share price this year and beyond. You will have to be patient with this one but I beleive it to be an exceptional investment.

DYOR.

cheers GF.

TA looks rather strong.....................

p.php?pid=legacydaily&epic=GED&type=1&si

HUSTLER - 22 Sep 2005 15:40 - 114 of 367

Hi Micky
According to company refs harken hold 34.1%.
I know they have been off loading recently but
i am not sure the figure is that low, however the
more liquid the stock becomes the more attractive it is.
House broker Teather & Greenwood update 15 Sept STRONG BUY.
Shares Mag today main tip,
and a new high up 23p to 3.06 at post.
And still giving it away roll on for more.
All the best
HUSTLER
NB
Just checked out shares mag they quote harken holding 61%
and looking to reduce to just under 50%

mickeyskint - 22 Sep 2005 17:05 - 115 of 367

HUSTLER

That really does make these look good. Reducing down to below 50% is what I like to hear. I'll have another look tomorrow.

goldfinger - 23 Sep 2005 12:19 - 116 of 367

Well worth getting in Mickey before the adfvn crowd.

cheers GF.

bhunt1910 - 23 Sep 2005 14:34 - 117 of 367

I reckon that it might drop back a bit next week after the euphoria of being tipped in Shares Mag. Kicking myself for not topping uplast week.

baza

gordon geko - 23 Sep 2005 15:47 - 118 of 367

save the shares mag tip which they tipped before have held GED but think its valuation too high compared to EEN who are doing 4000 BOPD also valued at 96M
anyone got both ??? and some thoughts

stringy - 23 Sep 2005 17:08 - 119 of 367

The 'valuation' of GED isn't just based on current revenues but also on the company's past growth and future prospects which are potentially huge. Their acreage is immense.

gordon geko - 26 Sep 2005 09:01 - 120 of 367

you mean sentiment of GED past record not that brillant and the BOPD growth is
not that astounding check out EEN got all this and more kiss of death comes from shares mag again tipping them at the top

goldfinger - 26 Sep 2005 10:48 - 121 of 367

I here GED was tipped by Fat Prophets last week aswell.

Anyone have the Shares Mag item please?.

cheers GF.

Philip3 - 26 Sep 2005 12:29 - 122 of 367

Hi Goldfinger, I have it. Send me your email address, will scan it and mail it to you.

Phil.

goldfinger - 26 Sep 2005 13:36 - 123 of 367

Thanks Philip, just click on my name and you will be able to send it via this boards message service. Many thanks in anticipation.

cheers Gf.

Philip3 - 26 Sep 2005 23:45 - 124 of 367

Hi Goldfinger

I cannot send attachments via the email system on MoneyAM.

Send me an email to:

adidaslad1@hotmail.com

and I shall respond with the info on GED.

Phil

HUSTLER - 26 Sep 2005 23:56 - 125 of 367

Hi Gf
Go to Money AM home page
to download Shares Mag i am sure your subs allow it.
You must have acrobat which i am sure you have.
Regards
HUSTLER

Andy - 27 Sep 2005 00:48 - 126 of 367

str9ingy,

Good to see you in some oilers, northern hemisphere winter will soon be here, and then we should see all producers doing ok IMHO.

GED look ok, but I don't like buying when a chart is as steep as that.

goldfinger - 27 Sep 2005 01:52 - 127 of 367

Thanks for the help chaps but I got her indoors to pick a copy of the mag up for me. A very positive piece.

Andy its this second half of the year that this one really goes to town.

cheers GF.

gordon geko - 27 Sep 2005 13:59 - 128 of 367

EEN reporting tommorrow will get back into GED if falls a bit from this level surely someone can do comparision both in columbia so all what shares said pretty much stands true for EEN but they are delivering more oil and the reserves are about to be increased by 15m proven reserves

stringy - 27 Sep 2005 18:01 - 129 of 367

Thanks Andy,

Been in a few 'oilers' and done well so far. Best to date was DGO but got out too early....should have stuck with that one!

I found GED myself whilst searching through all the oil minnows in March and bought in at 1.73.....a faster riser than DGO were for me, though seemed to take a while for people to discover them. Always loved this one, though as a 'newbie' investor I initially thought I'd made some mistake as I never saw them mentioned anywhere. -Happy with my choice now.

goldfinger - 27 Sep 2005 23:32 - 130 of 367

Srtingy, I beleive theres an awfull lot left in the tank on this one. Best of luck.

cheers Gf.

HUSTLER - 28 Sep 2005 00:00 - 131 of 367

Hi Gf
Only on tickover at the moment
plenty of gears left to go,
6.00 in third - forth & fifth who knows.
Money making machine.
Lap it up
HUSTLER

goldfinger - 28 Sep 2005 00:28 - 132 of 367

Will do Hustler.

cheers Gf.

tau - 28 Sep 2005 00:43 - 133 of 367

what are the easiest brokers to get hold of this share? Halifax state them as 'residual' and are unable to trade them . I understand they are tightly held by Harken but there is obviously some liquidity. thanks, Tau.
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