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.....................

Earnings Per Share forecasts PB. Taken from Digitallook.com

For Dec 2005 EPS concensus forecast is 13.52p divide by SP 270p = 19.9

For Dec 2006 EPS concensus forecast is 24.17p divide by SP 270p = 11.7

If you were looking for a figure of 442p just divide the forecast EPS of 24.17p into this and you have a P/E of 18.28.

Your on the right lines.

I hope that helps but also remember Oilys and mining stocks are often valued by the premium or discount to Nett Asset Value - NAV. Or Nav per share. I beleive this one is trading presently way below the nav per share of 2008/2009 of something like 8 plus . Please see first few posts at the top of this thread.

Very good value to my mind, but Im getting very concerned about over heating in the sector. A lot of small exploration companys are trading well above their NAV value. Theres an inverse relationship between optimism and liquidity. I think we may only be months away from the top of the market so beware.

You can also tell by the number of hypers on most of the oil threads on the other big board. What they dont understand is that just because market prices for Oil etc are high and getting higher they feel that Oil stock will continue to rise which is wrong. The consumer market for Oil should be seperated from the equity market for oil stocks.

At some stage investors get to a point whare they are low on liquidity (high on optimism) in other words they are more or less fully invested with no more money or credit left to put in the sector. The next stage is usually whats the 'next big thing' selling develops and then panic steps in and we have a stampede. The market capitulates and people get burnt.

A big thanks for that GF Up to now GED hasnt really acompanied this trend, and seems to be really good value, and they are producing and with results. If there is a stampede, do you think this kind of share will hold up even with its high discount to NAV?

PB I think it will be hit like all others in the sector. But if you are a long term investor like myself (usually) it should recover and growth will continue.

cheers GF.

What is wrong with this share? Fundamentals seem right but just getting weaker on price rapidly. Really would like some information as to why the price continues to fall.

Nothing really, just the high beta that effects it.

Im holding for the long term.

cheers GF.

scimitar
I loved this one but got out
because nms is to low,
the story remains the same booming sector but
to many other stocks doing the bis and easy to
deal in, think of the herding instinct.
When the sector cools off this one will have
its day its a good one longterm in the meantime forever watching.
All the best
HUSTLER

This share and Angle(ANG).... are good value shares... good money to be made

Good news.

Global Energy 'encouraged' by Tilodiran 2 exploratory well data in Colombia
AFX


LONDON (AFX) - Global Energy Development PLC said it is encouraged by initial data from drilling on the Tilodiran 2 exploratory well in the Rio Verde Exploration and Production Concession contract in Colombia.

'Initial petrophysical analysis of the available data obtained from the open hole is considered by the company to be encouraging and Global is now proceeding to complete and test more than one potentially oil productive zone,' it said.

The Tilodiran 2 well was drilled to a final depth of 13,350 feet.

'The Tilodiran 2 well has been directionally drilled successfully to intercept five potentially oil productive formations,' managing director Stephen Voss added.

The company said it may be several weeks before the final results of the drilling are known.







newsdesk@afxnews.com

jc



cheers GF.

Excelent results this morning.....

Global Energy FY pretax rises to 9.3 mln usd vs 5.35 mln, sales up 74 pct
AFX


LONDON (AFX) - Global Energy Development PLC reported a rise in full-year pretax profits to 9.3 mln usd from 5.35 mln a year earlier and sales rising to 19.04 mln usd from 10.97 mln.

The AIM-listed petroleum exploration and production company with focus on Latin America said the extensive prospects already secured, and all 100 pct owned by Global, should enable the company to continue to prosper and grow.

The proved plus probable reserves replacement ratio for the year to end-Dec 2005 was approximately 327 pct.



newsdesk@afxnews.com

lam

cherrs GF.

Anyone know what's going on - these seem to be flying - whats the story guys?

Wow...this is rocketing - 2.98now...too bad I'm not in GED...good luck guys! Hope it goes up further.

Very bullish and in depth article in the 'THE FLEET STREET LETTER' from the 25th - concludes - "In short, the powerful effect of higher production, probable reserve additions and $60 oil leads us to conclude that GED could reach 400p by end 2006. The drop from 346p offers a fantastic opportunity to snap up LatAm oil reserves
on temporary weakness. BUY"

Yipee, glad I held the faith, what a cracking rise up on the back of the tip.

cheers GF.

And going on a nice run up this morning.

cheers GF.

It is time. I am glad I held on to GED, even at a loss for a long time, and now beginning to look up It again proves that great value and patience will eventually be rewarded. Thanks GF for this post

Yup you have to be really patient in this business. Moving up nicely again.

Dont forget to take profits along the way, top slicing and lopping the top.

cheers GF.

GF - I am only a small investor, and not in the league of most. If I top slice, I will be left with virtually nothing. I only have 1500 shares in GED. I am confident about GED's prospects, so for now will hold untill I feel there is a turn, or has reached saturation. Based on my holding, do you feel I am on the right thinking path, or should I still Lop. I had bought the 1500 some time ago at 276 and later bought another 1000 at 233. Soon sold the 1000 at 246 to reduce my breakeven on the 1500. I dont normally average down, but with GED I just felt the need to ( maybe out of frustration and knowing there was value there ).
Regards
PB

paperbag
Within the next two years this share should motor. Can you name any other share which is going to have such a high capital expenditure? There will be no dividends but the capital return should be great.

I agree with that. I just like to take profits to make sure I lock the gains in.

cheers GF.

When you find a good share the investors that make the most money are the ones who are prepared to wait for the profits the profits to materialise.