TIDMGBP
RNS Number : 7800N
Global Petroleum Ltd
31 October 2016
31 October 2016
Global Petroleum Limited
SEPTEMBER 2016 QUARTERLY REPORT
The Board of Global Petroleum Limited ("Global" or "Company") is
pleased to present its Quarterly Report for the period ending 30
September 2016.
Summary
-- The Company's Petroleum Exploration Licence covering two
Blocks, 1910B and 2010A in the Walvis Basin Offshore Namibia, was
extended in December 2015 into Phase 2, which is for a duration of
24 months with a reduced Minimum Work Programme. In place of the
previous well commitment in Phase 2, the Company undertook to
reprocess and re-interpret previously acquired 2D seismic and to
shoot 800 kilometres of new 2D. To this end the Company's technical
team has evaluated reprocessed 2D seismic data from the 1990s and
also reprocessed speculative 2D seismic data shot over its blocks
in 2011/12 by TGS, both of which were purchased earlier this year.
The evaluation of this data has proven to be very encouraging with
regard to the hydrocarbon potential in Global's blocks. Notably the
work has increased confidence in a syn-rift oil play in the
outboard or deep water region offshore Namibia and the likely
presence of both reservoir and source within the Company's blocks.
Combined with the existing prospect portfolio within the blocks,
this has improved Global's view on the overall prospectivity of the
acreage. Planning for the acquisition of infill 2D seismic survey
data - likely to be shot in 2017- is also in progress including
liaison with the Namibian Ministry of Mines and Energy.
-- Post the end of the current reporting period the Company
announced that environmental decrees had been published by the
Italian authorities in relation to two of the Company's four
applications (d 82 F.R-GP and d 83 F.R-GP). The Company expects the
environmental decrees in respect of the remaining two applications
shortly. Publication of environmental decrees is the final
administrative stage before final grant of the permits.
-- Consistent with its previously announced strategy, over the
course of the reporting period the Company has continued to engage
with counterparties holding appropriate assets. A consistent
feature in many potential opportunities which we have reviewed is
the onerous work commitments which were undertaken by
counterparties in a better macro-economic environment. This,
combined with structural issues regarding availability of finance,
continues to be a major hindrance in concluding transactions.
For further information please visit www.globalpetroleum.com.au
or contact:
Global Petroleum Limited
Peter Hill, Managing Director & CEO +44 (0) 20 7495 6802
Damien Cronin, Company Secretary +61 (0) 7 3310 8732
RFC Ambrian Limited (Nominated Adviser
& Joint Broker)
Charlie Cryer / Oliver Morse +44 (0) 20 3440 6800
FirstEnergy Capital LLP (Joint Broker)
Hugh Sanderson +44 (0) 20 7448 0200
Tavistock (Financial PR & IR)
Simon Hudson / Niall Walsh +44 (0) 20 7920 3150
Namibian Project
The Namibian Project consists of an 85% participating interest
in Petroleum Exploration Licence Number 29 ("Licence") covering
Offshore Blocks 1910B and 2010A in the Republic of Namibia. The
Licence, issued on 3 December 2010, originally covered 11,730
square kilometres and is located offshore Namibia in water depths
ranging from 1,300 metres to 3,000 metres (Refer Figure 1). The
Initial Exploration Period of the Licence expired in December 2014,
and Global fulfilled its corresponding work obligations
approximately halfway through the initial four year term. The
Company agreed with the Namibian Ministry of Mines and Energy
("MME") a 12 month extension of the Initial Exploration Period to
December 2015, on the basis of an agreed work programme which
entailed further interpretation work on existing seismic data.
In December 2015, the Company entered into the First Renewal
Exploration Period (Phase 2) of the Licence, making a mandatory
relinquishment of 50% of the Licence Area. Phase 2 is for a
duration of 24 months with a reduced Minimum Work Programme which
does not now contain a well commitment. Instead, the Company has
undertaken to reprocess and re-interpret previously acquired 2D
seismic and to shoot 800 kilometres of new 2D. To this end the
Company's technical team has evaluated reprocessed 2D seismic data
from the 1990s which was purchased earlier this year, and has
recently taken delivery of reprocessed speculative 2D seismic data
shot over its blocks in 2011/12 by the seismic company, TGS. Work
on the seismic continues to be very encouraging with regard to the
hydrocarbon potential in Global's blocks. Notably the work has
increased confidence in a syn-rift oil play in the outboard or deep
water region offshore Namibia and the likely presence of both
reservoir and source within the Company's blocks. Combined with the
existing prospect portfolio within the blocks, this has improved
Global's view on the overall prospectivity of the acreage. Planning
for the acquisition of infill 2D seismic survey data - likely to be
shot in 2017- is also in progress in liaison with the Namibian
Ministry of Mines and Energy.
The Company's wholly owned subsidiary, Jupiter Petroleum
(Namibia) Limited, remains operator with an 85% interest in the two
blocks, with partners NAMCOR and Bronze Investments Pty Ltd
(Bronze) holding 10% and 5% respectively, both as carried
interests.
A map of Namibia showing the Global Licence is available at:
http://www.globalpetroleum.com.au/operations/namibia
Permit Applications in the Southern Adriatic, Offshore Italy
In August 2013, the Company submitted an application and
proposed work programme and budget to the Italian Ministry of
Economic Development for four exploration areas offshore Italy (the
"Permit Applications" - Figure 2). The Permit Applications were
then published on 30 September 2013 in the Official Bulletin
allowing other competitive bids to be made over the subsequent
three months. In accordance with Italian offshore regulations,
Global subsequently submitted the relevant documentation to the
respective authorities in relation to environmental requirements,
and in connection with the satisfaction of certain technical and
financial requirements. The Company has been informed that it has
duly satisfied the technical/financial requirements, and post the
end of the current reporting period the Company announced that
environmental decrees had been published by the Italian authorities
in relation to two of the Company's four applications (d 82 F.R-GP
and d 83 F.R -GP). The Company expects the environmental decrees in
respect of the remaining two applications shortly. Publication of
environmental decrees is the final administrative stage before
final grant of the permits.
A map of the southern Adriatic showing the Italian Permit
Applications is available at:
http://www.globalpetroleum.com.au/uploads/files/reports/16-10-28-GBP-Environmental-Decrees-Final.pdf
The southern Adriatic is currently undergoing a significant new
phase of oil and gas exploration. There have been a number of
recent applications in the Adriatic close to the Permit
Applications. Adjacent to Italian waters, Montenegro held a
licensing round in 2014, with Croatia following suit in 2015.
Seismic acquisition companies have begun large, multi-client 2D
acquisition programmes across the entire basin, from Italy to
Croatia. In 2013 Shell and Petromanas announced the Shiprag
discovery onshore Albania, which is thought to be linked to the
same petroleum source rock and similar reservoir to some of those
identified in the offshore Adriatic.
Business Development
Global remains in a strong financial position from which to fund
work activity on its Namibian acreage, its Italian application
interests (subject to award), and to implement a change of focus
through acquisition. Accordingly, we have continued over the past
12 months to engage with counterparties holding appropriate assets.
However, the ability to raise the finance necessary for funding
asset development following an acquisition remains challenging in
the context of the relative slump in the commodity price. A
consistent feature in many potential opportunities which we have
reviewed is the onerous work commitments which were undertaken by
potential counterparties in a better macro-economic
environment.
We would note, by way of contrast, that over the equivalent
period Global Petroleum has not taken on acreage with short-term
well commitments. Still less have we utilised our funds to drill
high-risk frontier exploration wells.
Your Company is therefore well placed in comparison to many of
its peers. We retain a strong cash position and remain confident of
making a key investment in due course.
ASX Listing Rule 5.4.3
Global provides the following information in accordance with ASX
Listing Rule 5.4.3:
-- The Company holds Petroleum Exploration Licence Number 29
covering Offshore Blocks 1910B and 2010A in the Republic of
Namibia
-- No granted petroleum tenements were acquired or disposed of
by the Company during the reporting period.
-- No beneficial percentage interests in joint venture, farm-in
or farm-out agreements were acquired or disposed of by the Company
during the reporting period.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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