TIDMGBP
RNS Number : 5938O
Global Petroleum Ltd
31 January 2019
31 January 2019
Global Petroleum Limited
DECEMBER 2018 QUARTERLY REPORT
The Board of Global Petroleum Limited ("Global" or "Company") is
pleased to present its Quarterly Report for the period ending 31
December 2018.
Summary
-- The Licence for Namibia Block 2011A, designated PEL 0094, was
issued during the reporting period following the acquisition of the
Block during the previous quarter.
-- 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).
-- 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.
-- The one-year extension to the First Renewal Period (FRP) for
PEL 0029 formally expired in December 2018. However, the Licence
remains in force pending agreement of the work commitment for the
Second Renewal Period (SRP-below).
-- A firm and contingent work programme was submitted to the
Namibian Ministry of Mines and Energy (MME) during December 2018
and the Company expects a response from the MME regarding the work
programmes shortly.
-- In Italy, the Company announced that a total of eight appeals
made against the Environmental Decrees (Decrees) for its
applications in the Southern Adriatic have been rejected by the
Administrative Tribunal in Rome (Tribunal).
-- Two of the eight judgements relate to the Company's
applications d82 F.R-GP and d83 F.R-GP where the Decrees were
originally granted in October 2016 (2016 Decrees) with the
remaining six judgements relating to the d80 F.R-GP and d81 F.R-GP
applications, (2017 Decrees - granted September 2017).
-- Various appeals were deferred (see below for detail). The
Company remains confident that all appeals will ultimately be
rejected by the Tribunal.
-- At a corporate level the Company held its Annual General
Meeting on 29 November where all resolutions put to the meeting
were passed with large majorities.
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
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 which has now expired. At the same
time the MME had previously agreed entry into the Second Renewal
Period (Phase 3) effective from 3 December 2018 for a period of two
years. Negotiation of the work programme for Phase 3 is currently
underway.
PEL 0094 is located in the northern Walvis basin, immediately to
the east of PEL 0029 (Figure 1). Global holds an 85% interest in
the PEL 0094 as operator whilst State oil company, NAMCOR, and a
local private company, Aloe Investments, 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 the 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/5938O_1-2019-1-30.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 Company announced in October 2017 that the remaining two
Environmental Decrees in relation to the Permit Applications,
designated d 80 F.R-GP and d 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 were
made.
A total of seven parties filed appeals with the Tribunal against
the 2016 Decrees: two were rejected at the scheduled hearing in
Rome on 23 October 2018; however, five of the appellants filed
further grounds for appeal, obliging the Tribunal to defer those
five appeals until Q1 2019.
Nine parties filed appeals with the Tribunal against the 2017
Decrees. Seven appellants had their cases heard on 20 November
2018, six being rejected by the Tribunal with judgement in respect
of one appellant being deferred. Two appellants filed further
grounds for appeal at the Hearing, again obliging the Tribunal to
defer hearing those appeals until Q1 2019.
Finally, three appellants filed appeals with the President of
the Republic (one appellant against the 2016 Decrees, two against
the 2017 Decrees), in all cases being out of time for appeal to the
Tribunal.
Global is encouraged that the appeals heard by the Tribunal have
all been rejected and remain confident that all the remaining
appeals will be rejected once finally heard. Further, 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 Energean and Eni/Novatek
(the latter just 35 km from the nearest of the Applications).
Eni/Novatek plan to spend nearly $100 million on exploration on
these permits where, reportedly, 3D seismic acquisition has
recently been completed. Energean plans to spend nearly $20 million
on its permits, with 3D seismic acquisition reportedly imminent. In
Albania, Shell continues to evaluate its Shpiragu discovery.
The four Application blocks are contiguous with the Italian
median lines abutting Croatia, Montenegro and Albania respectively
(Figure 2 below).
http://www.rns-pdf.londonstockexchange.com/rns/5938O_2-2019-1-30.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
during the reporting period.
-- 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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