LONDON (Alliance News) - Global Petroleum Ltd Monday said it remains optimistic about the potential of its Namibian oil exploration blocks given the technical differentiation between the prospectivity on its blocks and the target drilled at Welwitschia-1A well, which has been recently plugged and abandoned.
In a statement Monday, the oil and gas explorations comapny focussed on Africa and the Mediterranean noted the abandonment of the Welwitschia-1A well by partners including Tower Resources PLC and Repsol Exploration Ltd.
Shares in Tower Resources slumped last Friday after it said it had failed to find hydrocarbons in early targets at the Welwitschia-1A well on the PEL0010 licence, offshore Namibia, and had to stop drilling deeper at the well due to spiralling costs. Tower Resources has a 30% working interest on the site while Repsol Exploration Ltd is the operator and owns 44% of the site.
Global Petroleum said in a statement Monday that the Welwitschia-1A well did not reach depths where most of its prospects lie, and it still believes its blocks have shallow reservoir potential.
The Welwitschia-1A well was drilled to a depth of 2,454 metres in Block 2011A, adjacent to Global's Block 2010A in the Walvis Basin offshore northern Namibia. Global holds an 85% participating interest in Petroleum Exploration Licence No.0029, covering offshore blocks 1910B and 2010A.
"The great majority of the prospectivity in Global's acreage is mapped in older sediments. These deeper structures were not reached by the Welwitschia-1A well. Therefore, the significant potential of these deeper traps and reservoirs remains to be tested," the company said in a statement.
Global Petroleum shares were down 3.2% at 3.75 pence Monday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Global Petroleum (GBP)