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LONDON (Alliance News) - Global Petroleum Ltd Friday said the company remains in a "strong financial position relative to many of its peers" which will allow it to continue to progress its existing licenses whilst pursuing acquisition opportunities in new geographical regions of the world.
The oil and gas exploration company focused on Africa and the Mediterranean said it has held detailed discussions with various parties about concluding an acquisition of assets which would add "significant near-term value".
Global said any acquisition would be funded from internal resources and, if market conditions permit, the raising of further capital. The company reported a cash balance of USD13.5 million at the end of March.
The company also has started to cut corporate costs in response to the fall in oil prices, which have fallen from around USD112 per barrel in July 2014 to around USD55 Friday morning.
"On the acquisition front, I believe that the wind is now blowing more favourably in our direction and that it is now more likely that we will be able to make an acquisition at realistic prices which will deliver value to our shareholders," said Chief Executive Peter Hill.
"However, we remain extremely selective and are pleased that previously unrealistic expectations by vendors have modified as we have held discussions, and are now at levels where we are more optimistic of concluding a value-creating transaction," he added.
Global has submitted four applications for exploration licenses in the southern Adriatic offshore Puglia, offshore Italy, adjoining the median line with Albanian waters. The company said other companies who have been awaiting license awards in the country have recently been granted licenses, giving it confidence in its applications.
"Our Italian permit applications cover acreage which we believe holds excellent potential, and it is pleasing to note the progress being made towards licence awards by Global and other companies. I look forward to reporting further progress on our initiatives later in the year," said Hill.
In Namibia, where the company has an 85% stake in offshore blocks 1910B and 2010A, the company said both licenses have been extended until the end of 2015. In return for the extension, Global will conduct an additional work programme, involving further modelling using both seismic and gravity data.
"The company intends to enter into discussions with the Namibian authorities regarding future exploration in the blocks," said the company.
Global said it has also decided to withdraw its application to extend the permit for the Juan de Nova permit in the Mozambique Channel following a frustratingly long wait.
"Given the lack of progress in the two years since then, the fact that there is no visibility as to when a formal decision might be forthcoming from the French authorities, as well as Global's relative technical ranking of Juan de Nova compared to its other interests and opportunities, the Board has taken the decision to withdraw from the application," said Global.
Global shares were up 5.1% to 1.84 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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