Global Petroleum gives update

Global Petroleum has issued a quarterly report for the period ending 30 September.

Summary:

– The company’s petroleum exploration licence covering two blocks, 1910B and 2010A in the Walvis Basin Offshore Namibia, was extended in December 2015 into Phase 2, which 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 and to shoot 800 kilometres of new 2D. The company’s technical team has 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 earlier this year.

The evaluation of this data has proven to be very encouraging with regard to the hydrocarbon potential in Global’s blocks. Notably the work has increased confidence in a syn-rift oil play in the outboard or deep water region offshore Namibia and the likely presence of both reservoir and source within the company’s blocks.

Combined with the existing prospect portfolio within the blocks, this has improved Global’s view on the overall prospectivity of the acreage. Planning for the acquisition of infill 2D seismic survey data – likely to be shot in 2017- is also in progress including liaison with the Namibian Ministry of Mines and Energy.

– Post the end of the current reporting period the company announced that environmental decrees had been published by the Italian authorities in relation to two of the company’s four applications (d 82 F.R-GP and d 83 F.R-GP). The company expects the environmental decrees in respect of the remaining two applications shortly. Publication of environmental decrees is the final administrative stage before final grant of the permits.

– Consistent with its previously announced strategy, over the course of the reporting period the company has continued to engage with counterparties holding appropriate assets. It says: “A consistent feature in many potential opportunities which we have reviewed is the onerous work commitments which were undertaken by counterparties in a better macro-economic environment. This, combined with structural issues regarding availability of finance, continues to be a major hindrance in concluding transactions.”

At 9:53am: (LON:GBP) Global Petroleum Ltd share price was 0p at 1.63p

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