Information  X 
Enter a valid email address

Global Petroleum Ltd (GBP)

  Print      Mail a friend

Wednesday 22 April, 2020

Global Petroleum Ltd

March 2020 Quarterly Report

RNS Number : 4647K
Global Petroleum Ltd
22 April 2020
 

22 April 2020

 

Global Petroleum Limited

 

MARCH 2020 QUARTERLY REPORT

 

The Board of Global Petroleum Limited ("Global" or the "Company") is pleased to present its Quarterly Report for the period ending 31 March 2020.

 

Summary

 

· Namibia The Company signed an agreement post the reporting period to license pre-existing 3D seismic data in its offshore block 2011A (PEL0094):

 

This key data covers an area of 1,583 square kilometres, principally within PEL0094, and  encompasses both the Welwitschia Deep prospect and the Marula lead, enabling precise mapping of these features and thus facilitating farmout by the Company;

The Company has agreed to transfer a seven per cent participating interest in PEL 0094 to  NAMCOR for the right to license the data, taking NAMCOR's interest in PEL 0094 to 17 per cent, carried to first production. Aloe Investments, a private Namibian company holds a five per cent interest, carried through exploration. 

 

· Italy Regarding the various appeals against the Environmental Decrees in relation to the Company's applications for offshore permits:

 

The appeal made by the town of Margherita di Savoia to the Council of State has been deferred to November 2020 as a consequence of the Covid-19 outbreak in Italy;

the appeals made earlier by the Puglia region to the Council of State were heard during the reporting period;

the Council of State, in its preliminary judgement in relation to the Puglia appeal, suspended the proceedings before it referred the matter to the European Court, requesting the Court to rule whether the four Licence Applications contravene a relevant EU Directive relating to the maximum permissible size of individual permits, in particular having regard to the fact that the four permit applications are contiguous;

The Company is consulting with its legal advisors regarding the process in relation to a hearing in the European Court.

 

· Cost base In response to the current low oil price environment and the COVID-19 pandemic and in order to conserve cash resources, the Board has recently focused on cutting those costs which are within its control.  To this end, the Company has made cuts in various categories of its G&A costs - as part of this the UK directors have agreed to reduce their annual remuneration by 25 per cent, effective 1 April 2020.  The Board believes that the Company's cost base is now at a more appropriate level for the current circumstances.

 

 

 

For further information please visit www.globalpetroleum.com.au or contact:

 

Global Petroleum Limited

 

Peter Hill, Managing Director & CEO

+44 (0) 20 3 875 9255

Andrew Draffin, Company Secretary

 

+61 (0)3 8611 5333

Cantor Fitzgerald Europe (Nominated Adviser & Joint Broker)

 

David Porter/Rick Thompson

 

+44 (0) 20 7894 7000

Tavistock (Financial PR & IR)

 

Simon Hudson / Nick Elwes/ Barney Hayward

+44 (0) 20 7920 3150

 

 

 

 

 

 

 

 

Namibian Project

The Namibian Project consists of an 85 per cent participating interest in Petroleum Exploration Licence ("PEL") 0029 covering Blocks 1910B and 2010A and a 78 per cent participating interest in PEL 0094 (acquired in 2018) which covers Block 2011A.

 

The combination of the two licences gives Global an interest in an aggregate area of 11,608 square kilometres offshore northern Namibia (Figure 1), and makes it one of the largest net acreage holders in the region.

 

http://www.rns-pdf.londonstockexchange.com/rns/4647K_1-2020-4-22.pdf

 

 

PEL 0029, 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).

 

The Company's wholly owned subsidiary, Global Petroleum Namibia Limited, formerly Jupiter Petroleum (Namibia) Limited, is operator of the Licence, with an 85 per cent interest. Partners NAMCOR and Bronze Investments Pty Ltd (Bronze) hold 10 per cent and five per cent respectively.

 

In December 2015, the Company entered into the First Renewal Exploration Period (Phase 2) of the Licence with a reduced Minimum Work Programme, making a mandatory relinquishment of 50 per cent of the Licence Area. Phase 2 originally had a duration of 24 months.

 

Following reprocessing and evaluation of historic 2D data, as previously reported, 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 was completed early in Q4 2017.

 

The new information significantly improved the prospectivity across PEL 0029 in general and the Gemsbok prospect in particular. Consequently, the Company commissioned a Competent Person's Report ("CPR") in respect of its acreage from consultants AGR TRACS. Prospective resources have been calculated on three prospects: the primary structure in PEL 0029, Gemsbok, as well as Dik Dik and Lion (Figure 2). The results of the CPR are set out in more detail in the Company's announcement on 15 January 2018.

 

http://www.rns-pdf.londonstockexchange.com/rns/4647K_2-2020-4-22.pdf

 

 

In late 2017, the Company also negotiated and agreed with the Namibian Ministry of Mines and Energy ("MME") an extension of the First Renewal Exploration Period (Phase 2) of the Company's Licence of 12 months to December 2018. At the same time the MME had previously agreed entry into the Second Renewal Period (Phase 3) effective from 3 December 2018 for a period of two years. Subsequently, a firm work programme for Phase 3 was agreed with the MME whereby the Company would  undertake various studies, including mapping of source rock, mapping of contourites deposits, fault studies and amplitude versus offset analyses and extended elastic impedance studies on seismic data.

 

The financial commitment to undertake the work programme is estimated at US$350,000. In addition, and carried over from the First Renewal Period (Phase 2), is the acquisition of 600 sq km of 3D seismic data - contingent upon the Company concluding a farmout - and the drilling of one exploration well.

 

PEL 0094 is located in the northern Walvis basin, immediately to the east of PEL 0029 (Figure 1).Under the PEL 0094  work programme, in the first two years of the Initial Exploration Period, Global is to  carry out various studies and will reprocess all existing seismic in the licence area, which includes a 3D seismic data survey shot in the western part. At the end of two years, Global has the option either to shoot a new 2,000 square kilometre 3D seismic data survey in the eastern part of Block 2011A, or alternatively to relinquish the licence.

 

The prospect and leads identified by the Company in PEL 0094 are shown in Figure 2, with the main targets being Welwitschia Deep and Marula. The prospective resources for these are set out in more detail in the Company's announcement on 26 November 2019.

 

Regarding the pre-existing 3D seismic data in PEL 0094, in April 2020 an agreement was reached with state oil company, NAMCOR, to license this key data, which was acquired by previous licensees in 2010. The data covers the Company's Welwitschia Deep prospect and Marula lead and will enable precise mapping of these features which will result in updated Prospective Resources and chances of success for Welwitschia Deep and Marula, and thus should facilitate farmout by the Company. 

 

The 3D seismic data survey covers an area of 1,583 square kilometres, and being only 10 years old is considered to be of relatively modern vintage. The vast majority of the survey is in PEL 0094 with the remainder in Block 1911 to the north, (Figure 2). 

 

In consideration for the right to licence this data Global agreed to transfer to NAMCOR a 7 per cent participating interest in PEL 0094.  NAMCOR held an existing 10 per cent carried interest, and its total interest in PEL 0094 is now 17 per cent, carried to first production. Aloe Investments, a private Namibian company, holds a 5 per cent interest, carried through exploration, and so Global now holds a 78 per cent interest, as operator.  

 

 

 Permit Applications Offshore Italy

In August 2013, the Company submitted an application, proposed work programme and budget to the Italian Ministry of Economic Development for four exploration areas offshore Italy (the "Permit Applications" - Figure 3).

 

As previously reported, various local authorities and interest groups appealed against the Environmental Decrees in relation to applications d 82 F.R-GP and d 83 F.R-GP, which were published in October 2016. Publication of Environmental Decrees is the final administrative stage before grant of the Permits. 

 

The Company announced in October 2017 that the remaining two Environmental Decrees in relation to the Permit Applications, designated d 80 F.R-GP and d 81 F.R-GP, had been published by the Italian authorities. As with the previous two Environmental Decrees, a number of appeals by various interested parties were made.

 

A total of seven parties filed appeals with the Rome Tribunal against the 2016 Decrees, and nine parties filed appeals with the Rome Tribunal against the 2017 Decrees.

 

Finally, three appeals were filed with the President of the Republic (one appeal against the 2016 Decrees, two against the 2017 Decrees) - it should be noted that in all cases the parties who took this course were out of time for appeal to the Rome Tribunal.

 

All first instance appeals made to the Rome Tribunal and to the President of the Republic were subsequently adjudicated in Global's favour.

 

Puglia appealed to the Council of State in respect of all judgments made against Puglia and the hearing was held in late January 2020. The Council of State, in its preliminary judgement, suspended the proceedings before it referred the matter to the European Court, requesting the Court to rule whether the four Licence Applications contravene a relevant EU Directive relating to the maximum permissible size of individual permits, in particular having regard to the fact that the four permit applications are contiguous. The Company is advised that the grounds of appeal (referral) are without merit. No hearing date has been set and the company is consulting with its legal advisors regarding the process in relation to a hearing in the European Court.

 

The town of Margherita di Savoia also appealed to the Council of State against the judgments in relation to applications d82 F.R-GP and d83 F.R-GP in December 2019 - the initial time frame for appeal had expired in early November, however the town was able to take advantage of a provision allowing for a 31 day extension. Hearing of the appeal made by the town of Margherita di Savoia to the Council of State has been deferred to November 2020, as a consequence of the Covid-19 outbreak in Italy.

 

Puglia and Margherita di Savoia aside, no other original appellant has appealed against the judgements at first instance, noting that the deadline to do so has in the majority of cases expired.

 

In February 2019, the Italian Parliament passed a Bill suspending all hydrocarbon exploration activities - including permit applications - for a period of 18 months. Under the proposed legislation, the Ministries of Economic Development and Environment will review all onshore and offshore areas for the stated purpose of evaluating their suitability for hydrocarbon exploration and development in the future. In doing so, the suitability of such activities in the context of social, industrial, urban, water source an environmental factor will be evaluated. In offshore areas, suitability will additionally be assessed having regard to the impact of such activity on the littoral environment, marine ecosystems and shipping routes. Following the 18 month evaluation period, the intention is that a hydrocarbon plan will be activated, setting out a strategy for future exploration and development.

 

The Southern Adriatic and adjacent areas continue to be the focus of industry activity. Most notably, in Montenegro, offshore concessions were awarded in 2016/2017 to Energean and Eni/Novatek (the latter just 35 km from the nearest of the Applications). Eni/Novatek plan to spend nearly $100 million on exploration on these permits where, reportedly, 3D seismic acquisition has recently been completed. Energean plans to spend nearly $20 million on its permits, with 3D seismic acquisition reportedly imminent. In Albania, Shell continues to evaluate its Shpiragu discovery.

 

The four Application blocks are contiguous with the Italian median lines abutting Croatia, Montenegro and Albania respectively (Figure 3 below).

 

http://www.rns-pdf.londonstockexchange.com/rns/4647K_3-2020-4-22.pdf

 

 

ASX Listing Rules

Global provides the following information in accordance with ASX Listing Rule 5.4.3:

 

· The Company holds Petroleum Exploration Licence Number 29 covering Offshore Blocks 1910B and 2010A, and Petroleum Exploration Licence Number 94 covering the Offshore Block 2011A, in the Republic of Namibia.

· No granted petroleum tenements were acquired or disposed of by the Company during the reporting period.

· No beneficial percentage interests in joint venture, farm-in or farm-out agreements were acquired or disposed of by the Company during the reporting period.

 

Global has separately released on AIM as well as ASX its Appendix 5B for the Quarter ended 31 March 2020 and the Appendix 5B will also shortly be available on the Global website  http://www.globalpetroleum.com.au/investors

 

-ends-


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
MSCFZGZDKZGGGZG

a d v e r t i s e m e n t