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

IC today - Awaiting news of a farm-out deal

Shares in Global Energy Development




(GED: 73p), the Latin America-focused petroleum exploration, development and production company with operations in Colombia, remain close to a major support level. At this depressed valuation the company is being valued at only £27m, or half net asset value of £52.8m.

This is partly due to the fact that the potential farm-out of a material portion of the company's interest in its Bolívar shale oil properties, located within the Middle Magdalena Valley in Colombia, South America, has taken far longer than planned. However, in a trading statement yesterday the company confirmed that it is continuing negotiations with parties. I still believe a deal will happen, and one that will spark an overdue share price rerating and a substantial one at that.

To recap, Global Energy is working together with investment bank Jefferies International to find a farm-out partner and guidance is for an announcement to be made by the end of September. The process of due diligence and hammering out terms can take time and, of course, the timing is subject to third-parties. However, it is realistic to assume that a farm-out will ultimately be achieved given the presence of high-quality operators in the area including oil majors ExxonMobil

(NYSE: XOM) and Royal Dutch Shell

(LSE: RDSA). Any disposal, or farm-out, will also highlight the chronic undervaluation of Global Energy's shares.



Seriously undervalued

This view is supported by analyst Andrew McGeary of broking house Northland Capital. Commenting on the trading update yesterday, Mr McGeary noted: "The Rio Verde water disposal well and more consistent production (last year Tilodiran-2 experienced 120 days of downtime) should significantly enhance this year's profitability as per our forecasts. The company remains inexpensive on earnings and robust given cash generation. On reserves metrics, the shares are exceptionally cheap and the Magdalena assets remain potentially high impact. We await further news as to the appraisal and farm-out prospects in Bocachico and Bolívar respectively."

For the current financial year to end-December, Northland expects Global Energy to produce revenues of around $45.8m, up from $44m (£29m) in 2012, but in the absence of the issues which dragged down profits in 2012, full-year pre-tax profits are expected to rise from $2.7m to $6.2m. On this basis, expect underlying EPS of 11.4¢, or 7.5p at current exchange rates. This means the shares are priced on a very modest 10 times earnings estimates and on less than half Northland's risked-reserves-based price target of 186p.



Catalysts for a rerating

True, the shares are well below my original buy advice of 103p ('Insiders major buy signal', 17 Dec 2012), but there are two major catalysts which could drive the price higher in the coming months.

Firstly, Global Energy is due to report financial results in late September. In my view, profits could have easily more than doubled in the first six months of this year. This will undoubtedly be seen as a positive by investors and can only highlight the undervaluation of the shares on an earnings basis as Northland estimates indicate. Secondly, any farm-out deal will highlight the value in the Magdalena assets and the unwarranted discount to book value the shares are trading on.

In the circumstances, I am comfortable reiterating my buy recommendation with Global Energy's shares priced on a spread of 70p to 73p. Moreover, I still believe that a target price of 140p is feasible.