Namibia
The Namibian Project consists of an 85% participating interest in Petroleum Exploration Licence No. 0029 (Licence) covering Offshore Blocks 1910B and 2010A in the Republic of Namibia issued on 3 December 2010. The Licence covers 11,730 square kilometres and is located in offshore Namibia in water depths ranging from 1,200 metres to 3,000 metres.
A reconnaissance grid of 1995 2D seismic data over both blocks has been purchased and is currently being interpreted. Preliminary examination suggests the presence of large structural highs and the presence of a significant Early Cretaceous and possibly older section beneath the main highs. Although only a few wells have been drilled in the area, they have established the presence of oil and gas-prone source rocks, good potential reservoirs and migrated hydrocarbons in the region, making this an attractive frontier play.
It is believed that the regional basin or basins were formed in response to thermal subsidence following the rifting preceding the separation of Africa from South America.
The Global blocks lie adjacent to acreage held by Arcadia Petroleum Limited (Refer to Figure 1), whose partner Tower Resources recently announced encouraging estimates (from a Competent Person's Report) for finding hydrocarbons in one or more of their prospects.
To the north east of the Global blocks, a well drilled last year by Sintezneftgaz (Nakor Investments) reportedly found a substantial gas column whilst Chariot Oil and Gas has recently announced the identification of new structures and increases in its estimates of gross unrisked mean prospective resources in its licences in offshore Namibia. Chariot has shot 3D seismic and also has a Competent Person's Report.
The Global blocks represent one of the last remaining opportunities to participate in this prospective and active exploration province in this part of offshore Namibia.
Global's interests in the Namibian Project exist pursuant to a mixture of licences, operating agreements and related documents held or entered into by its wholly owned subsidiaries, and are therefore partly contractual in nature, rather than absolute and sole legal title. The Licence is held jointly by Jupiter Petroleum (Namibia) Limited (Jupiter Namibia – a subsidiary of Global), the National Petroleum Corporation of Namibia (Pty) Ltd (NAMCOR) and Bronze Investments Pty Ltd (Bronze). In addition to the Licence, Jupiter Namibia, NAMCOR and Bronze are parties to:
- a Petroleum Agreement dated 3 December 2010 between them and The Government of the Republic of Namibia (Petroleum Agreement); and
- a Joint Operating Agreement dated 6 December 2010 between them, pursuant to which they have agreed to hold their interests as a participating interest of 85% for Jupiter Namibia, and carried interests (carried through exploration) of 10% for NAMCOR and 5% for Bronze (JOA).
In accordance with the terms of the Petroleum Agreement and JOA, the following minimum work and expenditure programme must be undertaken and funded by Global:
(a) Initial Exploration Period (First Four Years of Licence):
Undertake geological, geochemical, geophysical and related studies and review all existing gravity and magnetic data, and other available information, including the purchase of existing relevant and reasonable quality seismic data and acquire, process and interpret a minimum of 1,000 kilometres of 2D seismic data. Minimum exploration expenditure for the Initial Exploration Period is US$1 million.
(b) First Renewal of Exploration Period (Two Years):
The drilling of one exploration well. Minimum exploration expenditure for the First Renewal Exploration Period is US$20 million.
(c) Second Renewal Period (Two Years):
Acquisition, processing and interpretation of additional seismic data (if necessary) and the drilling of one exploration well. Minimum exploration expenditure for the Second Renewal Exploration Period is US$20 million, or US$21 million if new seismic is required.
- Figure 1: Jupiter Petroleum Limited's Namibia Project Location Map
