LONDON (Alliance News) - Global Petroleum Ltd said Tuesday it is "encouraged" by Tullow Oil PLC finding "wet gas signatures, indicative of oil" in the adjacent acreage to its offshore project in Namibia.
Shares in Global Petroleum were up 16% at 2.44 pence each on Tuesday.
In recent exploration drilling at Block 2012B at the Cormorant prospect, Tullow Oil said it encountered hydrocarbons.
Global Petroleum owns a petroleum agreement for Block 2011A, which is contiguous to the north west of Block 2012B.
Tullow Oil ultimately plugged and abandoned the Cormorant well describing it as "non-commercial".
Global Petroleum, however, said hydrocarbons being evident in the overlying shale "infers the failure to encounter hydrocarbons in commercial quantities was due to factors which are specific to the Cormorant stratigraphic prospect".
Global believes the well results do not impact the prospectivity of its portfolio.
Chief Executive Officer Peter Hill said: "We are very encouraged by firm evidence from drilling of a working hydrocarbon system in the area adjacent to our acreage, which we believe has positive implications for the multiple prospects in our Namibian portfolio. We are fortunate that this news has arrived so soon after we secured Block 2011A. It has increased our confidence in the prospects for all our blocks and we look forward to progressing their exploration."
Global Petroleum (GBP)