TIDMGBP
RNS Number : 8207L
Global Petroleum Ltd
24 July 2017
24 July 2017
Global Petroleum Limited
JUNE 2017 QUARTERLY REPORT
The Board of Global Petroleum Limited ("Global" or "Company")
presents its Quarterly Report for the period ending 30 June
2017.
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 data, and
to shoot 800 kilometres of new 2D data. Following the reprocessing
and evaluation of the historic 2D data, the Company announced
during the reporting period that it had entered into a contract
with Seabird Exploration of Norway in order to acquire 834 km of
full fold 2D seismic data over its Blocks. The seismic survey was
duly carried out, and successfully completed post the end of the
reporting period.
-- The Company has previously announced that environmental
decrees have 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) and that a number of appeals have been launched against the
two environmental decrees by a mixture of local and urban
authorities, and by special interest groups. Global is taking the
necessary steps to oppose the appeals. The Company understands that
local authorities have recently appealed against other
environmental decrees in the Southern Adriatic, and that these
appeals have been rejected by the competent legal tribunal.
-- Consistent with its previously announced strategy, over the
course of the reporting period the Company has continued to engage
with counterparties holding what we consider to be attractive
assets. Global remains in a strong cash position in comparison to
many of its peers, and the Company remains confident of making a
key investment in due course.
For further information please visit www.globalpetroleum.com.au
or contact:
Global Petroleum Limited
Peter Hill, Managing Director +44 (0) 20 7495
& CEO 6802
+61 (0) 7 3310
Damien Cronin, Company Secretary 8732
Cantor Fitzgerald Europe (Nominated
Adviser & Joint Broker)
+44 (0) 20 7894
Sarah Wharry / Craig Francis 7000
GMP FirstEnergy Capital LLP (Joint
Broker)
+44 (0) 20 7448
Hugh Sanderson 0200
Tavistock (Financial PR & IR)
+44 (0) 20 7920
Simon Hudson / Niall Walsh 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. In
place of the previous well commitment in Phase 2, the Company
undertook to reprocess and re-interpret previously acquired 2D
seismic data, and to shoot 800 kilometres of new 2D data. To this
end, the Company's technical team 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 in 2016. The evaluation of this data proved to be very
encouraging. 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 significantly improved Global's view on
the overall prospectivity of the acreage. Following the
reprocessing and evaluation of the historic 2D data, the Company
announced during the reporting period that it had entered into a
contract with Seabird Exploration of Norway in order to acquire 834
km of full fold 2D seismic data over its Blocks. The seismic survey
was duly carried out, and successfully completed post the end of
the reporting period.
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.
http://www.rns-pdf.londonstockexchange.com/rns/8207L_-2017-7-23.pdf
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 was subsequently informed that
it had duly satisfied the technical/financial requirements. The
Company has previously announced that environmental decrees have
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), and
that a number of appeals have been launched against the two
environmental decrees by a mixture of local and urban authorities,
and by special interest groups. The Company understands that
similar appeals were recently made against environmental decrees
granted to other companies in the Southern Adriatic, and that these
appeals were rejected by the Regional Administrative Tribunal of
Latium.
http://www.rns-pdf.londonstockexchange.com/rns/8207L_1-2017-7-23.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
The ability to raise the finance necessary for funding asset
development following an acquisition has remained challenging in
the context of the relative slump in the commodity price since
2014. However, oil prices increased in the latter part of 2016, and
market conditions for E&P financings have shown some
improvement recently.
We would note that, by way of contrast with many of its peers,
Global has not over the latter period taken on acreage with
short-term well commitments nor utilised its funds to drill
high-risk frontier exploration wells.
Global remains in a strong cash position in comparison to many
of its peers, and is thus well placed to fund work activity on its
Namibian acreage, its Italian application interests (subject to
award), and to implement a change of focus through acquisition. We
have continued over the latter period to engage with counterparties
holding what we consider to be attractive assets, 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
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