Global Petroleum hails good result

Global Petroleum has announced that the latest Leighton Olmos well in McMullen County, Texas, has begun to flow oil and gas. This is the ninth well targeting the Olmos reservoir in which Global has a 15% working interest (11.25% net revenue interest).The group said that the well will be connected for production to oil tanks and the gas pipeline in the next two weeks. The operator of the well, Texon Petroleum, said the well has begun to flow oil and gas at the combined rate of 370 barrels of oil equivalent per day (boepd) from the Olmos reservoir.In comparison with the three closest production wells to the Peeler number 3 well, this is "a good result", Global Petroleum claimed, as thos wells tested at initial rates of 170 to 445 boepd.The market seemed to agree, pushing the Global Petroleum share price up 2.5p to 16.5p.The company's house broker, Northland, noted that, "Global Petroleum [GBP] conducts its GM [general meeting] this week to approve the acquisition of Jupiter Petroleum which we expect the deal to receive strong shareholder support. GBP's pro forma financials for March show net cash of A$25.7m (c.£17m). "The company also recently appointed the experienced Peter Hill as CEO [chief executive officer] to manage the new look group beginning in September. Once concluded, the deal should signal the start of an exciting new phase and focus for the well capitalised company."The share price was up 17.86% to 16.50p at 15:58. NR