LONDON (Alliance News) - Global Petroleum Ltd on Wednesday said it has signed a petroleum agreement to acquire an 85% interest in block 2011A, offshore Namibia.
The state oil company, National Petroleum Corp of Namibia Pty Ltd, and local private company Aloe will have carried holdings of 10% and 5%, respectively.
Block 2011A is located in the northern Walvis basin, immediately to the east of the company's current licence, which comprises blocks 1910B and 2010A. Global believes that block 2011A contains the same plays as blocks 1910B and 2010A.
Global Petroleum said that in the western part of block 2011A, the drilling campaign did not encounter a reservoir, while in the eastern part, local prospect operators, Tullow Oil PLC and Chariot Oil & Gas Ltd, have discovered oil reservoirs.
Under the block 2011A work programme, in the first two years of the initial exploration period, Global Petroleum plans to carry out various studies and intends to reprocess all existing seismic data in the licence area.
The company believes that the studies and reprocessing will enable the reservoirs to be mapped with more confidence, and the leads to be identified more accurately.
Upon completion, Global Petroleum said it 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.
"It is clear that oil and gas industry interest in offshore Namibia has accelerated greatly in recent months and we are therefore extremely pleased to have succeeded in what has been a long-term aim for the company - acquiring block 2011A adjacent to our existing acreage," said Chief Executive Peter Hill.
The stock was trading 5.3% lower on Wednesday at 2.32 pence per share.
Tullow Oil (TLW)
Global Petroleum (GBP)
Chariot Ltd (CHAR)