TIDMGBP
RNS Number : 9937B
Global Petroleum Ltd
26 September 2018
26 September 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the
publication of this announcement via a Regulatory Information
Service ('RIS'), this inside information is now considered to be in
the public domain.
Global Petroleum Limited
("Global" or "the Company")
Final Results for the Year Ended 30 June 2018, Appendix 4G
The Directors of Global Petroleum Limited present their report
together with the consolidated financial statements of the Group
comprising of Global Petroleum Limited ("the Company" or "Global"
or "Parent") and the entities it controlled at the end of, or
during, the year ended 30 June 2018 ("Consolidated Entity" or
"Group").
The Company confirms that a full copy of its latest Annual
Report and Accounts, as well as the relevant Appendix 4G will be
available shortly on the Company's website
(www.globalpetroleum.com.au).
Full copies of the Directors' Report and 2017-2018 Financial
Statements are available at:
https://www.asx.com.au/asxpdf/20180926/pdf/43ynlshjrmv3vd.pdf
Chairman and CEO's Review
We are pleased to present to you the Global Petroleum 2018
Annual Report. Since we wrote to you a year ago in the last Annual
Report, Global has continued to make good progress with its
offshore Namibian acreage, and the hearings of the appeals against
the first two Environmental Decrees in respect of our Italian
Adriatic Sea licence applications are expected to take place in Q4
2018.
In terms of the wider economic picture during the last financial
year, commodity prices have significantly improved with the Brent
oil price averaging $63 per barrel during the reporting year to 30
June 2018, compared to $51 in the preceding year to end June 2017.
Consequently, there has been increased operational and commercial
activity within the upstream industry generally, and two wells are
scheduled to spud during the second half of 2018 offshore Namibia
one of which is marginally outside the Walvis Basin, where our
acreage is located. Attracting capital for exploration activities
remains challenging, however financing is available for the right
opportunities, as particularly demonstrated within the London
capital markets.
During the reporting period the Company completed a 2D seismic
acquisition programme over its two operated blocks held under
Petroleum Exploration Licence 0029 ("PEL 0029") in Namibia.
Processing and interpretation of the data was completed in October
2017 with the new information indicating significantly improved
prospectivity across the blocks.
Accordingly, the Company commissioned a Competent Persons Report
("CPR") in respect of its acreage from consultants AGR TRACS, which
was completed in the reporting period. Prospective resources have
been calculated on three prospects: the Company's primary
structure, Gemsbok, as well as Dik-Dik and Lion. The results of the
CPR are set out in more detail in the Company's announcement dated
15 January 2018.
In late 2017, the Company negotiated and agreed with the
Namibian Ministry of Mines and Energy ("MME") an extension of the
First Renewal Exploration Period (Phase 2) of PEL 0029 for a period
of 12 months until December 2018. In addition, the MME has agreed
entry into the Second Renewal Period (Phase 3) effective from
December 2018 for a period of two years.
Following the release of the CPR, the Company appointed Stellar
Energy Advisors, a specialised independent advisor providing
acquisition and divestment services to upstream companies in the
oil and gas business to provide support to the farm-out process.
The farm-out process of the Company's Namibian acreage is designed
with a view to seeking a partner to fund future operations on the
blocks, commencing with the acquisition of 3D seismic data in
accordance with the extension work programme agreed with the
MME.
In the period since 30 June 2018, the Company was pleased to
announce that it signed a Petroleum Agreement to acquire Block
2011A offshore Namibia via its wholly owned subsidiary Global
Petroleum Namibia Limited.
Block 2011A is located in the northern Walvis Basin, immediately
to the east of the Company's current licence, PEL 0029. The
combination of the two licences increases the Company's presence in
the region to 11,607 square kilometres offshore Namibia, making
Global one of the largest net acreage holders within the
region.
The Company believes that Block 2011A contains the same plays as
those outlined in the CPR for PEL 0029. Regarding the Repsol
operated Welwitschia-1 well drilled in the western part of Block
2011A in 2014, Global believes that there is significant
prospectivity, similar to that in PEL 0029 - in the deeper Albian
Carbonates, which Welwitschia-1A did not reach. (See Note 7.3
Subsequent Event for further detail).
In Italy, as previously reported, various local authorities and
interest groups appealed against the Environmental Decrees in
relation to applications d 82 F.R-GP and d 83 F.R-GP, which were
published in October 2016. Publication of Environmental Decrees is
the final administrative stage before grant of the Permits, and the
Company has been notified that the appeals will be heard by the
Latium Administrative Tribunal (Rome) in October 2018.
The Company announced in October 2017 that the remaining two
Environmental Decrees in relation to the Permit Applications,
designated d 80 F.R-GP and 81 F.R-GP, had been published by the
Italian authorities.
As with the previous two Environmental Decrees, a number of
appeals by various interested parties against the later
Environmental Decrees have been made. The Company has been notified
that these further appeals will be heard by the Latium Tribunal in
November 2018.
The Company remains confident of the prospectivity of the
application areas despite the continued delays with the granting of
the licences and is encouraged by the calibre of companies with
similar applications and or licences within the Southern Adriatic
region.
Financial
During the year ended 30 June 2018, the Group recorded a loss
after tax of US$1,965,570 (2017: loss US$1,856,463). Cash balances
at 30 June 2018 amounted to US$4,928,998 (2017: US$7,807,605). The
Group has no debt.
Strategy and Outlook
The Company continues to monitor further exploration
opportunities which may complement the Company's existing
exploration assets offshore Namibia and remains encouraged by the
recent increase in exploration activity both within the region and
beyond. In Namibia, wells are scheduled to be drilled by both
Tullow Oil and Chariot Oil & Gas in 2H 2018 - the Tullow well
spudded and completed in September.
We look forward to meeting Shareholders at the Company's Annual
General Meeting later in 2018.
John van der Welle Peter G. Hill
Non-Executive Chairman Chief Executive Officer
OPERATING AND FINANCIAL REVIEW
Namibian Project
The Namibian Project consists of (a) an 85% participating
interest in PEL 0029 ("Licence") covering Blocks 1910B and 2010A in
the Republic of Namibia and (b) Block 2011A in the Walvis Basin
granted during the period subsequent to 30 June 2018.
PEL 0029
PEL 0029, 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.
The Company's wholly owned subsidiary, Global Petroleum Namibia
Limited, is the operator of the Licence, with an 85% interest in
the two blocks. Partners NAMCOR and Bronze Investments Pty Ltd
(Bronze) hold 10% and 5% respectively, both as carried
interests.
In December 2015, the Company entered into the First Renewal
Exploration Period (Phase 2) of the Licence with a reduced Minimum
Work Programme, making a mandatory relinquishment of 50% of the
Licence Area. Phase 2 originally had a duration of 24 months.
Following reprocessing and evaluation of historic 2D data - as
previously reported, the Company entered into a contract with
Seabird Exploration of Norway in order to acquire 834 km of full
fold 2D seismic data over its Blocks, which was shot in June/July
2017. Processing and interpretation of the new 2D seismic data was
completed early in Q4 2017.
The new information significantly improved the prospectivity
across PEL 0029 in general and the Gemsbok prospect in particular.
Better imaging from the new 2D data revealed 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, greatly improves the chance of a major
oil discovery.
Consequently, the Company commissioned a CPR in respect of its
acreage from consultants AGR TRACS, which was completed within the
reporting period. Prospective resources have been calculated on
three prospects: the Company's primary structure, Gemsbok, as well
as Dik Dik and Lion. The results of the CPR are set out in more
detail in the Company's announcement on 15 January 2018.
In late 2017, the Company also negotiated and agreed with the
MME an extension of the First Renewal Exploration Period (Phase 2)
of the Company's Licence of 12 months to 3 December 2018. 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.
The Minimum Work Programme 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 MME and
Global agree that circumstances dictate otherwise.
Following the release of the CPR, the Company appointed Stellar
Energy Advisors, a specialised, independent advisor providing
acquisition and divestment services to upstream companies in the
oil and gas business. Stellar launched a structured farm-out
process of the Company's Namibian acreage with a view to seeking a
partner to fund future operations on the block, commencing with 3D
seismic data in accordance with the extension work programme agreed
with the MME. It is believed that potential farminees have decided
to await the results of the drilling being carried out in Q3 and Q4
2018 by operators nearby.
Block 2011A
In September 2018, the Company was pleased to announce that it
signed a Petroleum Agreement to acquire Block 2011A offshore
Namibia via its wholly owned subsidiary Global Petroleum Namibia
Limited.
Block 2011A is located in the northern Walvis Basin, immediately
to the east of the Company's current licence, PEL 0029. The
combination of the two licences increases the Company's presence in
the region to 11,607 square kilometres offshore Namibia, making
Global one of the largest net acreage holders within the
region.
The Company believes that Block 2011A contains the same plays as
those outlined in the CPR for PEL 0029. Regarding the Repsol
operated Welwitschia-1 well drilled in the western part of Block
2011A in 2014, Global
believes that there is significant prospectivity, similar to
that in PEL 0029 - in the deeper Albian Carbonates, which
Welwitschia-1A did not reach. (See Note 7.3 Subsequent Event for
further detail).
The Company also believes that there is additional prospectivity
in shallower Upper Cretaceous/Tertiary reservoirs on the eastern
flank of the Welwitschia structure. These reservoirs have been
proven by wells to the north-east and south-east of Block 2011A,
and the Cretaceous is a target in both of the wells being drilled
in Q3/Q4 2018 by other industry operators nearby.
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").
As previously reported, various local authorities and interest
groups appealed against the Environmental Decrees in relation to
applications d 82 F.R-GP and d 83 F.R-GP, which were published in
October 2016. Publication of Environmental Decrees is the final
administrative stage before grant of the Permits, and the Company
has been notified that the appeals will be heard by the Latium
Administrative Tribunal (Rome) in October 2018.
The Company announced in October 2017 that the remaining two
Environmental Decrees in relation to the Permit Applications,
designated d 80 F.R-GP and 81 F.R-GP, had been published by the
Italian authorities.
As with the previous two Environmental Decrees, a number of
appeals by various interested parties against the later
Environmental Decrees have been made. The Company has been notified
that these further appeals will be heard by the Latium Tribunal in
November 2018.
Global understands that recent appeals against other
Environmental Decrees in the Southern Adriatic have been rejected
by the same tribunal.
Permit Applications in the Southern Adriatic, Offshore Italy
(continued)
The Southern Adriatic and adjacent areas continue to be the
focus of industry activity. Most notably, in Montenegro, offshore
concessions were awarded in 2016 /2017 to Eni/Novatek (the latter
just 35 km from the nearest of the Applications). The four
Application blocks are contiguous with the Italian median lines
abutting Croatia, Montenegro and Albania respectively.
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 acquire complementary assets
with particular focus on Namibia where exploration activity has
increased. The Company is encouraged by planned wells which are
scheduled to be drilled by both Tullow Oil and Chariot Oil &
Gas in Q3 and Q4 2018.
Presentation Currency
The financial information in this annual report is presented in
United States dollars (US$).
Results of operations
2018 2017
US$ US$
----------------------------------------- ------------- -------------
Loss from continuing operations before
tax (1,965,570) (1,856,463)
----------------------------------------- ------------- -------------
Income tax benefit (expense) - -
----------------------------------------- ------------- -------------
Net profit (loss) (1,965,570) (1,856,463)
========================================= ============= =============
Global Petroleum Limited
Peter Hill, Managing Director & CEO +44 (0) 20 7495 6802
Cantor Fitzgerald Europe (Nominated Adviser
& Joint Broker)
Nick Tulloch / David Porter +44 (0) 20 7894 7000
GMP FirstEnergy Capital LLP (Joint Broker)
Hugh Sanderson +44 (0) 20 7448 0200
Tavistock (Financial PR & IR)
Simon Hudson / Barney Hayward +44 (0) 20 7920 3150
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACSVQLBLVKFLBBV
(END) Dow Jones Newswires
September 26, 2018 04:31 ET (08:31 GMT)
Global Petroleum (LSE:GBP)
Historical Stock Chart
From Apr 2024 to May 2024
Global Petroleum (LSE:GBP)
Historical Stock Chart
From May 2023 to May 2024