LONDON (Alliance News) - Global Petroleum Ltd Friday said it is seeking a joint venture partner to fund the development and evaluation of its Namibian license, but believes its disappointing drilling results in the area will make it difficult to source one.
Global Petroleum has agreed a 12 month extension of its exploration period in its Namibian license, with the Namibian Ministry of Mines and Energy. The license will now expire in December 2015 and Global are seeking a partner to enter the project.
The company has extended the license following mixed drilling results to date on the license. One well was drilled and abandoned and another well recovered liquid hydrocarbons and the company plans to drill deep first and work its way up to the surface, it said.
Global "continues to seek a partner with a view to funding the future work programme on the licence, commencing with 3D seismic. However, the company is mindful of the wider context that disappointing drilling results both in Namibia and in Atlantic margin frontier plays generally have affected industry and market sentiment, which has undoubtedly had a bearing on its farm-out process in Namibia," it said in a statement.
Discussions between Global and the French Authorities are ongoing, aimed at renewing the permit for Juan de Nova Est for a five year term. If renewal is granted, Global will become the operator with an increased equity in the permit, it said in a statement.
The permit covers approximately 9,010 square kilometres and is situated to the east of the small island of Juan de Nova in the Mozambique Channel, immediately to the west of Madagascar.
Global 2D seismic data results from the permit area shows signs of a thick prospective section, encouraging the company to renew the permit. The company does not expect a decision before the first quarter of 2015, it said in a statement.
"We continue to appraise a wide range of potential new opportunities. We are expending intensive effort with a view to meeting our priority of significantly growing the Company's portfolio. As previously reported we intend to acquire only what we regard as high-quality assets, bearing in mind our strong cash position compared to many of our peers," said Global.
"The company will now balance its existing higher risk/reward portfolio in Namibia and prioritise exploration in proven hydrocarbon provinces, especially onshore, and investment in discovered contingent resources. Geographically the focus will continue to be primarily Africa and the Mediterranean," it added.
Global shares were up 2.6% to 2.95 pence per share Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Global Petroleum (GBP)