TIDMGBP
RNS Number : 3943F
Global Petroleum Ltd
29 October 2018
29 October 2018
Global Petroleum Limited
SEPTEMBER 2018 QUARTERLY REPORT
The Board of Global Petroleum Limited ("Global" or "Company") is
pleased to present its Quarterly Report for the period ending 30
September 2018.
Summary
-- The Company focused on securing a Petroleum Agreement to
acquire Block 2011A offshore Namibia, which was executed on 19
September 2018.
-- The Licence for Block 2011A, designated PEL 0094, was issued post the reporting period.
-- Block 2011A is located in the Walvis basis, immediately to
the east of the Company's current Licence, PEL 0029, which
comprises Blocks 1910B and 2010A (see figure 1 below).
-- Global will hold an 85% interest in PEL 0094 as operator -
State oil Company Namcor, and Namibian private company Aloe
Investments, will have carried interests of 10% and 5%
respectively.
-- The combination of the two Licences gives Global an interest
in an aggregate area of 11,608 square kilometres offshore Namibia,
which is one of the largest net acreage holdings in the region.
-- During the reporting period the Company terminated the
arrangement with Stellar Energy Advisors who had been conducting a
structured farm-out process for PEL 0029. Although no farminee has
been identified to date, the Company will continue to seek
potential farm-in partners.
-- Tullow Oil completed the well on its Cormorant prospect
during the reporting period. Cormorant is located in Block 2012B to
the south east of PEL 0094 (see Figure 1), and encountered
hydrocarbons - Tullow noting that wet gas signatures, indicative of
oil, were evident in the overlying shale to the Albian sandstones
target.
-- Global infers that the failure to encounter hydrocarbons in
commercial quantities was due to factors which are specific to the
Cormorant stratigraphic prospect. Accordingly, Global believes the
well result does not impact on the prospectivity of its portfolio,
which contains extremely large dip-closed structures as well as
some stratigraphic prospects.
-- The Company also notes that both Cormorant, and the
subsequent Chariot Prospect S well to the south (which was
completed post the reporting period), were drilled more rapidly
than expected, which has favourable implications for future well
costs in the area.
-- In Italy, the Company continued to work with its Italian
legal advisors in relation to the appeals lodged against the
Environmental Decrees covering the Company's four exploration
licence applications in the southern Adriatic, which are scheduled
to be heard in Rome during October and November 2018.
For further information please visit www.globalpetroleum.com.au
or contact:
Global Petroleum Limited
Peter Hill, Managing Director & CEO +44 (0) 20 7495 6802
Andrew Draffin, Company Secretary +61 (0)3 8611 5333
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
Namibian Project
The Namibian Project consists of an 85% participating interest
in Petroleum Exploration Licence ("PEL") Number 0029 covering
Blocks 1910B and 2010A and the recently acquired PEL 0094 which
covers Block 2011A. PEL0029, 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 (Figure
1).
The Company's wholly owned subsidiary, Global Petroleum Namibia
Limited, formerly Jupiter Petroleum (Namibia) Limited, is 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 Competent Person's
Report ("CPR") in respect of its acreage from consultants AGR
TRACS. 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
Namibian Ministry of Mines and Energy ("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.
During the reporting period the Company terminated the
arrangement with Stellar Energy Advisors who had been conducting a
structured farm-out process for PEL 0029. Although no farminee has
been identified to date, the Company will continue to seek
potential farm-in partners.
PEL 0094 is located in the northern Walvis basin, immediately to
the east of PEL 0029 (Figure 1). Global will hold an 85% interest
in the PEL 0094 as operator whilst State oil company, Namcor, and a
local private company, Aloe Investments, will hold interests of 10%
and 5% respectively, both as carried interests.
The combination of the two licences gives Global an interest in
an aggregate area of 11,608 square kilometres offshore northern
Namibia, and makes it one of the largest net acreage holders in the
region. Global believes that PEL 0094 contains the same plays as
those detailed in the CPR for PEL 0029.
Under the PEL 0094 work programme, in the first two years of the
Initial Exploration Period, Global will carry out various studies
and will reprocess all existing seismic in the licence area, which
includes a 3D seismic data survey shot in the western part. The
studies and reprocessing will enable the reservoirs in the
Welwitschia structure and elsewhere in the acreage to be mapped
with more confidence, and leads to be identified more
accurately.
At the end of two years, Global has the option either to shoot a
new 2,000 square kilometre 3D seismic data survey in the eastern
part of Block 2011A, or alternatively to relinquish the
licence.
http://www.rns-pdf.londonstockexchange.com/rns/3943F_1-2018-10-28.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).
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. The appeals
against them are scheduled to 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 new Decrees have
been notified to the Company and the Company has been notified that
the appeals against the 2017 decrees will be heard in November
2018.
Global is encouraged that the appeals are in the process of
being heard. The Company understands that recent appeals against
other Environmental Decrees in the Southern Adriatic have been
rejected by the same tribunal.
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 Marathon, OMV and
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 (Figure 2).
http://www.rns-pdf.londonstockexchange.com/rns/3943F_2-2018-10-28.pdf
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.
-- The Company signed a Petroleum Agreement to acquire Offshore
Block 2011A, in the Republic of Namibia. Petroleum Exploration
Licence Number 94 covering the Offshore Block 2011A was issued
subsequent to 30 September 2018.
-- Other than Block 2011A, 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-
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END
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