Walvis Basin, Namibia

Location

Licence No.

Block

Size/water depth

Partners

Walvis Basin

0029

1910B (offshore)

2010A (offshore)

5,810 sq. km /

1,200–1,500 metres

Global's subsidiary, Jupiter Petroleum (Nambia) Ltd
85% (operator)

NAMCOR
10% (carried interest)

Bronze Investments Namibia
5% (carried interest)

 

Current Status

Licence 0029 incorporating Blocks 1910B and 2010A was originally granted to Jupiter Petroleum (Namibia) ltd, a 100% subsidiary of Global Petroleum Limited, on 3rd December 2010. The other licence partners were Bronze Investments Pty Ltd and NAMCOR. The licence had an initial exploration period of 4 years from date of award, followed by two optional 2-year renewal periods. The initial 4-year period was extended for one year to December 2015, after which there was a 50% relinquishment in accordance with the Licence terms, resulting in the current licence area of 5,810 km². The Namibian authorities have recently agreed a one-year extension to the First Renewal Period, which now runs to December 2018, at which time there would also normally be a further 25% relinquishment. The minimum work programme and minimum exploration expenditures for each period are summarised below:

Initial Exploration Period (4 years, extended by one year to December 2015): Full evaluation of all available materials and geological, geochemical and geophysical studies, purchase of all available seismic data, and the acquisition, processing and interpretation of not less than 1,000km of 2D seismic data. The minimum expenditure should be at least US$1.0mln; minimum US$150,000 for studies and US$850,000 for 2D seismic data. The minimum work programme for the 1-year extension was extra mapping on the 2D seismic data, inversion of the gravity/magnetic data and maturity mapping with a minimum financial expenditure of US$0.25mln.

First Renewal Exploration Period (2 years, but extended by 1 year to 3rd December 2018): Minimum work programme revised to reprocessing of all 2D seismic lines in the retained area and the acquisition of 800km of long-offset 2D seismic data. This licence period was scheduled to end 3rd December 2017. Subsequently a 1-year extension of the First Renewal Period to 3rd December 2018 was agreed with the Ministry, with entry into the Second Renewal Period at that point in time. The minimum work programme for the 1-year extension is the acquisition of 600km² of 3D seismic data, contingent on Global Petroleum finding a farm-in partner to fund the 3D seismic survey. If the acquisition of the 3D seismic survey is not completed during the 1-year extension, then it can be carried over into the Second Renewal Exploration Period.

Second Renewal Exploration Period (2 years): Minimum work programme altered, in agreement with the Ministry, to drill one well (depth and location to be agreed) unless the Ministry and Global agree that circumstances dictate otherwise.

Global Petroleum remains optimistic about the potential of its Namibian blocks given the technical differentiation between the prospectivity on its blocks and the targets drilled by the Welwitschia-1A well in the neighbouring block in mid-2014 by Repsol. A 3D seismic survey

The Walvis Basin

The Namibian Offshore area is under-explored with fewer than 20 wells drilled over a wide area. Some of these wells have encountered hydrocarbon shows notably Wingat-1, which recovered oil to surface, but to date no commercial oil volumes have been discovered.

No wells have been drilled to date on the licence area, and the nearest offset oil and gas wells are 50 to 100 km away, e.g. 1911/10-1 and 1911/15-1 to the NE and Welwitschia-1 due east.

All the play elements are found to be present in the Namibian offshore. Rich, oil-prone, Aptian-Barremian source rocks are present in Wingat-1, Murombe-1, Moosehead-1, Kabeljou-1 and at Kudu, where it has sourced multiple tcfs of gas. As well as the oil at Wingat-1, oil was recovered from core in the Albian carbonate reservoir at 1911/15-1 and slicks detected by satellite have been noted to the north of Gemsbok.

Similarly excellent Aptian Carbonate reservoirs, the main target at Gemsbok, are present in the wells Tapir South -1, 1911/15-1 and 1911/10-1. Younger Cretaceous and Paleocene sands are present in Murombe-1, 2012/13-1, 1911/10-1 and 1911/15-1. ‘Syn-rift’ reservoirs have been proven at the Kudu gas discovery in the Orange Basin.

With respect to trapping the majority of the recent exploration in the outboard region has targeted stratigraphic or combination traps. This is due in the main to the strong regional dip from the platform into the basin margin to the west. One of the key positives for the Global acreage is in the scale and vertical extent of the rotated rift blocks which form the large, fault and dip closed structural traps at Gemsbok, Lion and Dik-Dik.

The scale of the extensional faulting in PEL0029 which extends up into the upper Cretaceous section create the classic Horst and Graben structural architecture, as seen in the majority of the world’s rift basins. It is this structural style which incorporates plays from late Syn-rift to the Aptian Carbonate reservoirs, which we believe sets Global's acreage apart from other licences in Namibia.

Following the integration of the 2017 2D seismic data Global completed a mapping exercise across the acreage identifying prospects and leads at several levels. Interpretation was completed on a number of horizons with the Aptian unconformity pick being the most significant in relation to the assessment of prospective resources. A total of 3 Prospects (Gemsbok, Lion and Dik-Dik) and 2 leads (Choje and Pangolin) were identified.

Albian-Aptian carbonate reservoirs are assumed in Gemsbok, Lion and Dik-Dik, while at Gemsbok there are also deeper targets with both aeolian and marine reservoirs interpreted.

Of the two leads, Choje is of particular interest as it is interpreted as a large, onlapping upper Cretaceous fan on the eastern flank of the Gemsbok high and consequently adds another potential level of prospectivity to the greater Gemsbok prospect area.

 

Introduction

Global holds an 85% participating interest in Petroleum Exploration Licence No. 0029, covering offshore blocks 1910B and 2010A. The blocks are located in the Walvis Basin and cover 5,810 square kilometres in water depths ranging from 1,200 metres to 3,000 metres. These interests were the assets of Jupiter Petroleum (Namibia) Limited that were acquired for shares by Global in November 2011. State petroleum company NAMCOR has a 10% carried interest and a private company, Bronze Investments Namibia, has a 5% free carry.

The entire Walvis basin is significantly under-explored although the wells drilled to date have encountered multiple potential source rock and reservoir intervals and in a number of cases hydrocarbon shows. Only seven wells have been drilled to date – by Norsk Hydro, Sasol, Ranger, HRT and, most recently, Repsol. Exploration drilling results in Namibia have been mixed to date. Of the wells drilled in the Walvis Basin, Global regards the HRT operated Wingat-1 well as being the most significant in that liquid hydrocarbons were recovered from the Aptian interval, thus establishing for the first time the presence of a source rock actively generating oil in the Walvis Basin.

In 2017 Global completed an ‘infill’ 2D seismic program of 840 km across the Blocks with particular focus on the primary prospect ‘Gemsbok’. The subsequent interpretation has confirmed 3, very large, prospective, fault and dip-closed structures: Gemsbok, Lion and Dik-Dik.

Namibia has attractive fiscal terms and an excellent working environment.

In January 2018 the Competent Person’s Report (CPR) on Namibian Blocks 1910B and 2010A (Licence PEL0029) was issued to Global Petroleum by independent consultants AGR TRACS International Limited.

Prospective resources have been calculated on three prospects: Global’s primary structure Gemsbok, as well as Dik-Dik and Lion. A total of 3.66 billion barrels of unrisked gross technical prospective resources (Best Estimate) has been estimated in the Blocks.

Of particular note, the main Aptian carbonate reservoir at Gemsbok has been estimated to have Best Estimate unrisked gross prospective resources of 1.1 billion barrels of oil with a probability of success of one in eight. The probability of success for the deeper Syn-Rift section at Gemsbok is lower than the main carbonate resource at Gemsbok, but the oil resource numbers are significant.

AGR TRACS Prospective resource estimates for PEL0029 are summarised in the table below. The Prospective Resource Estimates have been estimated using probabilistic methods.

 

Oil & Liquids: MMbbls

Gas: Bscf

Gross Technical

Prospective Resources

Net Attributable Technical Prospective Resources

Risk Factor

Operator

PROSPECT

Low Estimate

Best Estimate

High Estimate

Low Estimate

Best Estimate

High Estimate

POS

(%)

 

OIL - MMbbls

Gemsbok Main

318

1091

2581

270

927

2194

12.3

Global

Gemsbok Aeolian

66

330

1296

56

281

1102

5.4

Global

Gemsbok Marine

63

323

945

53

275

803

8.8

Global

Lion North

104

291

743

88

247

631

7.5

Global

Lion South

290

823

2105

247

700

1789

7.5

Global

Dik-Dik

224

805

1969*

190

685

1674*

5.0

Global

 

 

 

 

 

 

 

 

 

TOTAL#

1065

3663

9639

904

3115

8193

 

 

Source: AGR TRACS review

View the full CPR here

http://www.globalpetroleum.com.au/uploads/files/reports/18-01-12-agr-tracs-gbp-namibia-cpr-1516362266.pdf

 

Note:

“Risk Factor” for Prospective Resources means the chance, or probability, of discovering hydrocarbons in sufficient quantity for them to be tested to the surface. This, then, is the chance or probability of the Prospective Resources maturing into a Contingent Resource. Where a prospect could contain either oil or gas the hydrocarbon type with the higher probability of being discovered has been listed in the table.

“Operator” is Global Petroleum Limited.

“Gross” are 100% of the resources attributable to the licence whilst “Net Attributable” are those attributable to Global.

“MMbbls” – million barrels

“Bscf” – billion standard cubic feet, 6,000 scf/boe, “boe” barrel of oil equivalent

“Total #” – implies totals have been derived by arithmetic summation without any probabilistic addition.

Excludes the area outside Global licence. All the listed prospects are located entirely within Global’s licence except approximately 21% of Dik-Dik High Case.

Prospective Resources Cautionary Statement (in accordance with ASX Listing Rules): The estimated quantities of petroleum that may be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Competent Person – AGR TRACS

The CPR is dated 12 January 2018. AGR TRACS International Ltd is an independent consultancy specialising in petroleum reservoir evaluation and economic analysis. Except for the provision of professional services on a fee basis, AGR TRACS International Ltd does not have a commercial arrangement with any other person or company involved in the interests that are the subject of this report.

 

Operations

Announcements

DateReport TitlePDF Link

2018-03-21

Change of Registered Office

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2018-03-20

Half Year Financial Report

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2018-03-20

Half Year Results

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2018-01-31

Quarterly Report - December 2017

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