Global Petroleum sells interest in Eagle Ford Shale

Global Petroleum has reached a deal with Millennial PDP Fund II to sell its interest in the Eagle Ford Shale oil and gas development in Texas.

The fund, a wholly owned subsidiary of Millennial Energy, will buy the stake for a cash consideration of $0.51m.

The agreement comes after Global appointed Moyes & Co to market its interests to source potential buyers.

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Subject to final due diligence, Global will sell its 7.939% working interest beneath the Olmos formation including the Eagle Ford Shale and the two Eagle Ford wells in which it has a 5.95% beneficial interest in production.

The company also announced the results of exploration well, Wingat-1, located in the Walvis Basin, offshore Namibia.

"The global directors and technical management team are encouraged by the presence in the Walvis Basin of two organic rich source rocks, encountered at a depth where they are actively generating oil," the group said.

"In addition, the recovery of four samples of light oil further proves the presence of a working oil source in the Walvis Basin."

Plans are underway to drill a second well, about 15 kilometres west of Wingat-1.

RD