Last checked at 31 Jan 2011 07:36
31 January 2011
RNS AIM release
Global Petroleum Limited - December 2010 Quarterly Report
The Board of Global Petroleum Limited ("Global") is pleased to present its Quarterly Report for the period ending 31 December 2010.
Leighton Project
The first Eagle Ford well at the Leighton Project, Tyler Ranch EFS #1H was completed during the December quarter, having reached a total depth of 3,252m (10,670ft) and 1,372m (4,500ft) laterally. Good oil and gas shows were encountered during drilling, and following fracture stimulation and testing, the well had an initial flow in late December of 1,267 boepd, representing 1,202 bopd of light sweet crude and 782 mcfgpd of gas on a 16/64" choke.
Texon Petroleum Ltd (ASX: TXN) advised that Tyler Ranch EFS #1H produced 24,862 bo and 32,006 mcfg over the first 45 days on a restricted choke. This represents an average daily oil equivalent rate of 671 boepd (552 bopd and 711 mcfgpd) on the basis that 6mcf equals 1 barrel of oil equivalent. The 30 day rate on the same 6:1 basis was 716 boepd. The restricted choke is used to maintain reservoir pressure, slow the decline in production and potentially enhance oil recovery.
Global has a 7.939% working interest in the well. Global's beneficial interest (NRI) in the 45 day production is 5.95% or some 40 boepd.
The Company's share of oil and gas being produced from the well is now part of Global's revenue stream.
Global has a 7.939% working interest in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. Global's interest in the Leighton prospect also includes a 15% working interest in approximately 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation. Global has an interest in 7 producing Olmos wells.
Global expects to participate in the drilling of one Olmos production well during the current quarter, with Peeler #2 due to begin drilling in one weeks time.
The combined average daily production rate of the seven (7) Leighton wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2, Tyler Ranch #3, Tyler Ranch #4, Tyler Ranch #5 and Tyler Ranch #6) for the December quarter was a gross 421 boepd (186 bopd and 1,410 mcfgpd) with Global's beneficial interest (11.25% NRI) being 47 boepd.
Business Development
Global has been actively reviewing opportunities for acquisitions, joint ventures, or investments in the resources sector, both domestic and overseas, which may enhance shareholder value.
The Company has now entered into a conditional sale and purchase agreement to acquire Jupiter Petroleum Limited ("Jupiter") which holds prospective oil and gas exploration interests in offshore Namibia and in offshore Juan de Nova, a French dependency in the Mozambique Channel.
The acquisition of these interests will enable Global to participate in the prospective and active exploration province of offshore Namibia and position itself as an African focused oil and gas explorer.
Global will acquire 100% of Jupiter, a UK registered company which is owned 50% by Mr Peter Taylor and 50% by Mr Peter Blakey who are both also Directors of Global. The commercial terms of the acquisition, includes the issue of 25 million Global shares at settlement and the reimbursement of reasonable historical expenditure on the Namibian and Juan de Nova interests. The sale and purchase agreement is conditional on the satisfaction of a number of conditions precedent, including due diligence investigations, a report from an independent expert that the transaction is fair and reasonable to Global Shareholders, and Shareholder approval at a general meeting.
Further details on the proposed acquisition are available in the Company's announcement dated 31 January 2011.
Mark Savage
Chairman
Enquiries:
Global Petroleum Limited | ||
Clint McGhie | Tel | + 61 8 9322 6322 |
global.info@globalpetroleum.com.au | ||
Northland Capital Partners Limited (Nominated Adviser and Broker) | ||
William Vandyk | Tel | +44 20 7492 4750 |
Glossary:
bbl: barrel
bo: barrels of oil
boepd: barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6 mcf to 1 barrel of oil equivalent)
bopd: barrels of oil per day
mcf: thousand cubic feet
mcfg: thousand cubic feet of gas
mcfgpd: thousand cubic feet of gas per day
mmbtu: million British thermal units
NRI: Net Revenue Interest