Global Petroleum: Q3-17 Report (Seabird Exploration mention)
The Board of Global Petroleum Limited presents its Quarterly Report for the period ending 30 September 2017.
Summary
· The Company’s Petroleum Exploration Licence (‘Licence’ ) – currently in its second phase- covers two Blocks, 1910B and 2010A in the Walvis Basin offshore Namibia, and Global is currently negotiating an extension of the Licence with the Namibian authorities. The Company announced post the reporting period that processing and interpretation of the 2017 2D seismic data acquired over the Company’s acreage is now complete and that Management believes that the new information has significantly improved the prospectivity across block PEL 0029 in general and the Gemsbok prospect in particular. The Company further announced that it has commissioned a Competent Persons Report (“CPR”) in respect of its Namibian acreage and that it subsequently intends to launch a structured farmout process.
· In Italy, the Company also announced that that the remaining two Environmental Decrees – designated d 80 F.R-GP and d 81 F.R-GP – in relation to the Company’s four applications offshore Southern Adriatic (“the Applications”), have now been published by the Italian authorities.
· Global remains in a strong cash position in comparison to many of its peers, and is thus well placed to fund activity on its Namibian acreage, its Italian application interests (subject to award), and retains the option to implement a change of focus through acquisition.
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Namibian Project
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, 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).
In December 2015, the Company entered into the First Renewal Exploration Period (Phase 2) of the Licence, making a mandatory relinquishment of 50% of the Licence Area. Phase 2 is for a duration of 24 months with a reduced Minimum Work Programme. In place of the previous well commitment in Phase 2, the Company undertook to reprocess and re-interpret previously acquired 2D seismic data, and to shoot 800 kilometres of new 2D data. To this end, the Company’s technical team evaluated reprocessed 2D seismic data from the 1990s and also reprocessed speculative 2D seismic data shot over its Blocks in 2011/12 by TGS, both of which were purchased in 2016. Following the reprocessing and evaluation of the historic 2D data, 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 is now complete.
Management believes that the new information has significantly improved the prospectivity across block PEL 0029 in general and the Gemsbok prospect in particular. Better imaging from the new 2D data reveals 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, has greatly improved the chance of a major oil discovery. Gemsbok remains the Company’s primary exploration target.
The Company has commissioned a Competent Persons Report (“CPR”) in respect of its Namibian acreage from the consultants AGR Tracs, which is expected to be completed by the end of the year. A CPR is an independent technical report on oil and gas assets.
It is then the intention of the Company to launch a structured farmout process of its Namibian acreage with a view to seeking a partner to fund future operations on the block, commencing with 3D seismic.
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 (Bronze) holding 10% and 5% respectively, both as carried interests.