Notes to Editors
Global Petroleum is an Africa focused oil and gas exploration and development company. Its principal asset is located offshore Namibia. The Company’s strategy is to obtain early licence positions in frontier exploration areas, either directly or through joint venture arrangements, in order to provide maximum leverage exploration success. Global Petroleum is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
The Namibian Project consists of an 85% participating interest in Petroleum Exploration Licence Number 29 (“Licence”) covering Offshore Blocks 1910B and 2010A in the Republic of Namibia. The Licence covers 11,730 square kilometres and is located in offshore Namibia in water depths ranging from 1,300 metres to 3,000 metres.
Petroleum Exploration Licence 29 was first granted by the Namibian Ministry of Mines and Energy (“MME”) 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. Global fulfilled its work obligations for the Initial Exploration Period approximately halfway through the 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. This data confirmed the presence of two large structures and other potential leads.
Subsequently, MME agreed to a one year extension of the Initial Exploration 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. 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 of 24 months from 3 December 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.
The Company’s wholly owned subsidiary, Jupiter Petroleum (Namibia) Limited, 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 Company is well funded and debt free. The Board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector in order to enhance shareholder value.