Global Petroleum Ltd Namibia Update - Licence Extension (4063X)
24 November 2017 - 6:00PM
UK Regulatory
TIDMGBP
RNS Number : 4063X
Global Petroleum Ltd
24 November 2017
24 November 2017
Global Petroleum Limited
("Global" or "the Company")
Namibia Update - Licence Extension Granted, Entry into Second
Renewal Period
Global Petroleum Limited (AIM: GBP, ASX: GBP) is pleased to
announce that its wholly owned subsidiary, Jupiter Petroleum
(Namibia) Limited ("Jupiter"), has agreed with the Namibian
Ministry of Mines and Energy ('MME') an extension to the First
Renewal Exploration Period (Phase 2) of 12 months to 3 December
2018 for Petroleum Exploration Licence No. 29 ("the Licence"),
which covers Blocks 1910B and 2010A, in the Walvis Basin offshore
Namibia. In addition, the MME has agreed entry into the Second
Renewal Period (Phase 3) effective from 3 December 2018 for a
period of two years.
Global, via Jupiter, holds an 85% participating interest in the
Licence, which was originally issued on 3 December 2010 and then
covered 11,730 square kilometers located offshore Namibia in water
depths ranging from 1,300 metres to 3,000 metres (Figure 1). In
December 2015, the Company entered into Phase 2, making a mandatory
relinquishment of 50% of the Licence Area. Phase 2 was for a
duration of 24 months. The renegotiated reduced Minimum Work
Programme ('MWP') agreed with the MME involved the reprocessing of
all existing 2D seismic lines across the retained portion of the
Licence and the acquisition of 800km of long offset 2D seismic data
over the retained acreage, in place of the previous well
commitment. Interpretation of the newly acquired 2D data was
completed in October 2017.
The new information from the 2D seismic has significantly
improved the prospectivity across the Licence in general and the
Gemsbok prospect in particular. Better imaging from the 2D data
reveals that the known source rock intervals are likely to be
within the oil generative window and this, combined with data
showing repeating oil seeps along the faulted flanks of Gemsbok,
has greatly improved the chance of a major oil discovery. Gemsbok
remains the Company's primary exploration target.
The MWP for the one year extension of Phase 2 is the acquisition
of 600 square kilometres of 3D seismic data, contingent upon Global
concluding a farm-out agreement with a third party to fund the
acquisition of the 3D data. If the 3D acquisition is not completed
during the Phase 2 extension period, it may be carried over into
Phase 3. During Phase 3 the commitment is to drill one well (depth
and location to be agreed) unless the Ministry and Global agree
that circumstances dictate otherwise.
The Company has commissioned a Competent Persons Report ("CPR")
in respect of its Namibian acreage from the consultants AGR Tracs,
which is expected to be completed by the end of the year. A CPR is
an independent technical report on oil and gas assets. It is then
the intention of the Company to launch a structured farm-out
process of its Namibian acreage with a view to seeking a partner to
fund future operations on the block, commencing with the 3D seismic
project.
Jupiter remains operator with an 85% interest in the two blocks,
with partners NAMCOR and Bronze Investments Pty Ltd holding 10% and
5% respectively, both as carried interests.
Global's CEO, Peter Hill, commented: "We would like to thank the
Ministry of Mines and Energy for their help in constructing a
practical framework for future operations in Global's Namibian
acreage. The extension to Phase 2 and assurance of subsequent entry
into Phase 3 gives us time and flexibility to find the right
partner and also to progress the exploration of what we believe to
be very exciting acreage."
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 7000
GMP FirstEnergy Capital LLP (Joint
Broker)
+44 (0) 20 7448
Hugh Sanderson 0200
Tavistock (Financial PR & IR)
+44 (0) 20 7920
Simon Hudson / Barney Hayward 3150
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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