Quarterly Report

RNS Number : 2315V

Global Petroleum Ltd

29 October 2010

 



29 October 2010

RNS AIM release

Global Petroleum Limited - September 2010 Quarterly Report

The Board of Global Petroleum Limited ("Global") is pleased to present its Quarterly Report for the period ending 30 September 2010.

Leighton Project

Texon Petroleum Ltd (ASX: TXN) advised during the quarter that the seventh Leighton well, Tyler Ranch #6, had reached its total depth of 2,774 metres (9,100 feet) and began to flow oil and gas at the gross rate of 350 boepd from the Olmos reservoir (comprising 205 bopd and 880 mcf of gas per day) through a 10/64" choke at 2000 psi.

Tyler Ranch #6 was connected to oil tanks and a gas sales pipeline in September 2010 so that Global will now begin to obtain revenue from the production. 

Global has a 15% working interest (11.25% net revenue interest) in 873.691 acres in the Leighton Prospect from the surface down to the stratigraphic equivalent of the base of the Olmos Formation, including the 7 Leighton production wells producing from the Olmos reservoir.

The combined daily production rate of the seven (7) Leighton wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2, Tyler Ranch #3, Tyler Ranch #4, Tyler Ranch #5 and Tyler Ranch #6) at the end of the quarter was a gross 530 boepd with Global's Working Interest share being 79.5 boepd.

During the quarter, Global signed an amendment to the Participation Agreement with Texon Petroleum Ltd expanding the contract area of the Leighton Project to 1,651 acres for all depths beneath the Olmos Formation by cross-assigning its 15% working interest in the existing 873.691 acres, with 777.059 acres in which Texon held an average 96% working interest.  Under the amendment, Global now owns an undivided 7.939% working interest across the expanded area (131.05 net acres) including the Eagle Ford Shale.

The additional 777.059 acres included in the expanded contract area are adjacent to and in the vicinity of the original contract area of the Leighton Project and comprise 457.059 acres in the Leighton Prospect lying outside the original contract area and 320 acres in the adjacent Mandurah Prospect with depths from 7,100 feet down to 100 feet below the base of the Edwards Limestone Formation.

The amendment to the Participation Agreement enables a more efficient development of the Eagle Ford reservoir with horizontal wells.

Following amendment to the Participation Agreement, the first Eagle Ford well in the Leighton Prospect, Tyler Ranch EFS #1H, commenced drilling in September 2010.  The well drilled into the Eagle Ford Shale at the depth of 3,252 metres (10,670 feet) and encountered good oil and gas shows.  Subsequent to the end of the quarter, horizontal drilling has now completed and production casing has been run in preparation for fracture stimulation expected to being in the second week of November 2010.  Global has a 7.939% working interest in this well.

Business Development

The Board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector, both domestic and overseas, which may enhance shareholder value.  A number of new opportunities were assessed during the quarter and the Company will continue to evaluate these opportunities as they are presented.

Mark Savage

Chairman

Glossary:

boepd:       barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6 mcf to 1 barrel of oil equiv)

bopd:         barrels of oil per day

mcf:           thousand cubic feet

Enquiries:

Global Petroleum Limited
Clint McGhie	Tel	+ 61 8 9322 6322
	Email	[e-mail]
Astaire Securities Plc (Nominated Adviser and Broker)
William Vandyk	Tel	[phone]

 

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