Walvis Basin, Namibia

Location

Licence No.

Block

Size/water depth

Partners

Walvis Basin

0029

1910B (offshore)

2010A (offshore)

11,730 sq. km /

1,200–3,000 metres

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

NAMCOR
10% (carried interest)

Bronze Investments Namibia
5% (carried interest)

 

Current Status

Petroleum Exploration Licence No.29 was first granted on 3 December 2010 and the Petroleum Agreement relating to the Licence originally provided for an initial exploration period of four years from the date of signature.  Subsequently, MME agreed to a one year extension of this period, which would therefore have expired on 3 December 2015.  This agreement was contingent on completion of an approved work programme, which involved further interpretation work on existing seismic data.

Global fulfilled its work obligations for the Initial Exploration Period of the Licence approximately halfway through the initial four year term.  They included reinterpretation of 2,800 kilometres of purchased seismic and commissioning a high resolution 2D seismic acquisition programme of approximately 2,000 kilometres over the acreage.  The new data confirmed the presence of two large structures and other potential leads. Accordingly, the Company decided to seek a partner for the next phase of exploration activity on its acreage, commencing with 3D seismic.  This proved unsuccessful.  The Company is mindful that recent drilling results both in Namibia and Atlantic margin frontier plays generally, coupled with the low price oil environment, have negatively affected industry and market sentiment. Inevitably, this has had a bearing on farm-out processes in Namibia.

Global Petroleum remains optimistic about the potential of its Namibian blocks given the technical differentiation between the prospectivity on its blocks and the target drilled in the neighbouring block in mid-2014 by Repsol - Welwitschia-1A.  Moreover, the further work carried out by the Company in 2015 during the one year extension to the Initial Exploration Period consisted of further modelling of the prospects within the Licence Area using both seismic and gravity data.  The results of this combined seismic and gravity work has proved to be very encouraging with regard to hydrocarbon potential.  The work has increased confidence in a syn-rift oil play in the outboard or deep water region and the likely presence of both reservoir and source.  In Global’s view, this has significantly upgraded the overall prospectivity of the acreage, and has clearly facilitated the selection of the areas to be relinquished.

The Licence originally provided for a commitment to drill one well during the second phase (First Renewal Period), which has a duration of two years.  Given prevailing market conditions, which have negatively impacted frontier exploration both in Africa and globally, the Company and MME agreed a revised Minimum Work Programme in November 2015 in place of the well obligation.  This work involves reprocessing all existing 2D seismic lines across that portion of the Licence Area which is retained following the mandatory 50% relinquishment and acquisition of 800km of 2D over the retained acreage.

Global’s subsidiary, Jupiter Petroleum (Namibia) Ltd, 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.

 

The Walvis Basin

The Walvis Basin formed as a consequence of the break-up of Gondwanaland and the separation of South America and West Africa. A number of thick, sedimentary basins formed as a result of the tectonic activity and many are prolific hydrocarbon producing provinces. By comparison to some basins, the Walvis is highly under-explored despite having evidence of multiple possible working hydrocarbon systems.

In keeping with many other rift basins, the Walvis Basin started as a fluvial to lacustrine and/or shallow marine environment, where many old structural blocks remained elevated with deep grabens sitting adjacent to them. These deep grabens create an ideal environment for the deposition of petroleum generating source rocks, namely thick, organic rich shales, in a restricted basin. These source rocks are then progressively buried until the organic material converts to liquid and gaseous hydrocarbons. Indications of oil seeps on the surface of the ocean and oil shows in wells drilled close to Global’s blocks, all indicate that these source rocks have generated hydrocarbon very close to the main prospects.

Reservoirs have been penetrated in numerous wells drilled offshore Namibia. Both sandstone and carbonate reservoirs are anticipated targets in Global’s blocks, situated in structural and stratigraphic traps, charged with oil from the adjacent source kitchen.

Structures A, B and C

The structural prospects, A, B and C are anticipated to contain a thick, Albian to Aptian age, carbonate reservoir within a fault controlled trap, sealed by overlying deep marine shales.  These carbonates were penetrated in two nearby wells drilled during the 1990s and had a gross reservoir thickness of some two hundred metres.  Adjacent to the prospects is a deep graben, thought to contain source rocks that have generated hydrocarbons. Within, or close to, the blocks there are oil slicks on the ocean surface, hydrocarbons recovered from seabed cores, evidence of hydrocarbons on 2D seismic and oil and gas shows in a nearby well,  which all provide positive evidence for the generation and migration of hydrocarbons. Therefore there is every indication of a working petroleum system in this part of the Walvis Basin. Current internal estimates of mean prospective resources for each prospect are greater than one billion barrels of recoverable oil.

Landward of the structural prospects, sedimentary features are clearly visible on the seismic data showing the potential for the development of sandstone reservoirs within stratigraphic traps. A large late cretaceous delta is clearly evident from seismic, which will provide the source of significant volumes of sand, confirmed by the sandstones intersected in nearby wells and in the recent Tapir South well.  Several stratigraphic leads have been mapped, along two independent fairways, with the potential to contain significant resources.

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 11,730 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.

 

 

 

Operations

Announcements

DateReport TitlePDF Link

2017-03-14

Financial Report - Half year ended December 2016

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2017-01-24

Quarterly Report - December 2016

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2017-01-09

Change of Adviser

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2016-11-09

Results of AGM

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