Last checked at 28 Apr 2009 07:00
Global Petroleum Limited
ABN 68 064 120 896
28 April 2009
ASX release
Global Petroleum Limited - March 2009 Quarterly Report
Uganda EA5 Prospect (Global earning up to a 50% interest)
During the quarter, Global announced that consent of the Minister of Energy and Mineral Development of the Government of the Republic of Uganda had been received in relation to its Farm In Agreement with Neptune Petroleum (Uganda) Limited ("Neptune"), a wholly-owned subsidiary of Tower Resources plc ("Tower"), to earn a 50% interest in Neptune's Exploration Area 5 ("EA5").
Subsequent to the quarter end, Neptune signed a contract with the ASCOM S.A. Group ("ASCOM") to provide a mobile MBU-125 land rig to drill Iti-1, the first well in EA5. Tower advised that the Iti-1 well site and camp site were completed and all Government consents are in place. All drilling supplies will be on site shortly and agreements with the necessary service suppliers are close to finalisation in readiness for the rig's arrival and there do not appear to be any serious logistical impediments to transporting the rig to the site. The current best estimate is that the rig will arrive at the well site in early May to commence drilling by mid-month.
Under the terms of the Farm In Agreement, Global is earning up to a 50% interest in the EA5
Licence and Production Sharing Agreement by funding the cost of drilling Iti-1 (subject to a cap), the first well of a two well programme, and a second well at the Company's discretion, currently expected to be Sambia-1, when the results of Iti-1 have been interpreted.
Further information is provided in Global's release dated 22 December 2008.
Leighton Prospect (15% WI, 11.25% NRI)
Global elected to participate in the follow up well to the Leighton oil and gas discovery, Tyler Ranch #1, owned by Texon Petroleum Limited (ASX: TXN). Tyler Ranch #1 is located approximately 1km from the first Leighton well (Peeler #1).
Global funded 30% of the cost of drilling Tyler #1 in addition to reimbursing Texon US$180,000 in respect of prospect generation and lease costs for the well.
Texon advised during the quarter that drilling of Tyler Ranch #1 reached a total depth of 2,743 metres (9,000 feet) after intersecting the target sand. Testing of the well subsequent to the quarter end showed oil and gas flowing at the rate of approximately 420 boepd comprising some 260 bopd and 950 mcf of gas per day through a 10/64" choke, at a flowing pressure at the surface of about 2,900 psi. This is a smaller choke than used at Peeler #1 which flowed about 400 boepd through a 16/64" choke at 1,500psi and this indicates that Tyler Ranch #1 is performing better than Peeler #1.
Tyler Ranch #1 is already connected to oil tanks and a gas sales pipeline so that Global will now begin to obtain revenue from the production.
Global has a 15% working interest (11.25% net revenue interest) in the Leighton prospect.
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Kenya
As previously advised, notice has been given to Woodside Energy (Kenya) Pty Limited ("Woodside") terminating the Farm-In Agreement ("FIA"). The termination notice has been given based on Woodside's refusal to drill a second exploratory well in the project area in accordance with the FIA and its failure to take any steps to remedy this refusal, which the Company considers to be a repudiation and breach of the FIA.
The Company and joint venture partner Dana Petroleum (E&P) Limited are continuing legal proceedings in the English High Court of Justice to recover losses suffered as a result. Both parties have filed pleadings with the Court at this stage.
Falkland Oil and Gas Limited ("FOGL")
Subsequent to the quarter end, Global sold its remaining parcel of FOGL shares. Proceeds from the sale will be shown in the Appendix 5B for the Company for the June quarter.
The Board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector, both domestic and overseas, which may enhance shareholder value.
Mark Savage
Chairman
Enquiries:
| Global Petroleum Limited | |||||
| Shane Cranswick | Tel | + 61 8 9322 6322 | |||
| | global.info@globalpetroleum.com.au | ||||
| Blue Oar Securities Plc (Nominated Adviser and Broker) | |||||
| William Vandyk/Olly Cairns | Tel | +44 20 7448 4400 +61 8 6430 1630 |