TIDMGBP
RNS Number : 4118T
Global Petroleum Ltd
20 July 2020
20 July 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the
publication of this announcement via a Regulatory Information
Service ('RIS'), this inside information is now considered to be in
the public domain.
Global Petroleum Limited
("Global" or "the Company")
New Prospective Resources estimate for Petroleum Exploration
Licence 94 in Namibia
Global Petroleum Limited (AIM: GBP) is pleased to announce its
updated estimate of Prospective Resources for PEL0094 (Block
2011A), offshore Namibia, after interpretation of the 3D seismic
data survey recently licensed from the Namibian State Oil Company,
NAMCOR, which also holds a carried interest of 17% in the Licence.
Global holds a working interest of 78% and is operator.
A total of 881 million barrels of unrisked gross Prospective
Resources (Best Estimate) has been estimated in PEL0094 in two
prospects, of which 687 million barrels are net to Global. These
are detailed in Table A and have been classified in accordance with
the Society of Petroleum Engineers Petroleum Resources Management
System (SPE-PRMS), and have been estimated using a probabilistic
method. The Prospective Resources are based on the 3D and 2D
seismic data and geological information, including analogues, to
which Global has access.
As expected, the interpretation of the 3D seismic data has led
to increased confidence in the two prospects previously identified,
Marula and Welwitschia Deep.
The Marula prospect is a distal pinchout of Cretaceous
sandstones onto the Welwitschia high. Global's interpretation of
the 3D seismic data has revealed a significant amplitude anomaly
whose down-dip edge conforms with structure, which has resulted in
the geological chance of success of Marula being increased from 8%
to 18%.
The Welwitschia Deep prospect has also been confirmed by
interpretation of the 3D seismic data and the Albian carbonate
reservoir has Best Estimate unrisked gross prospective resources of
671 million barrels of oil (523 million barrels net to Global) with
a geological chance of success of 17%.
Further details can be found in the updated Corporate
Presentation on Global Petroleum's website.
Peter Hill, Global Petroleum's CEO, commented: "As reported in
March this year, we were very pleased to come to an agreement with
NAMCOR to licence the existing 3D seismic data on Block 2011A in
return for extra equity in the Licence, thus conserving the
Company's cash resources. Our experienced technical team has
carried out a comprehensive re-interpretation of the 3D data. This
work has reinforced our existing view that the acreage is highly
prospective, both by confirming Resource estimates and by
significantly increasing the chance of success of the Marula
prospect."
Table A: estimates of gross attributable technical Prospective
Resources and net attributable Prospective Resources in Global's
licence PEL0094, offshore Namibia
Gross* Net Attributable** Risk Operator
Prospective Resources Prospective Resources Factor
within PEL0094 within PEL0094
------------- ------------------------------------------- ------------------------------------------- ----------
1U 2U 3U Mean 1U 2U 3U Mean
Prospect Low Best High estimate Low Best High estimate
Estimate Estimate Estimate Estimate Estimate Estimate
(P90) (P50) (P10) (P90) (P50) (P10) (%)
--------- ---------- --------- --------- --------- ---------- ------- ----------
OIL - millions of barrels
Welwitschia
Deep 162 671 1863 881 126 523 1453 687 17% Global***
--------- --------- --------- ---------- --------- --------- --------- ---------- ------- ----------
Marula 109 210 337 218 85 164 263 170 19% Global***
--------- --------- --------- ---------- --------- --------- --------- ---------- ------- ----------
TOTAL 881 1099 687 857
--------- --------- --------- ---------- --------- --------- --------- ---------- ------- ----------
* "Gross" means 100% of the resources attributable to the
licence, so does not include any resources outside of the
licence.
** 'Net Attributable' are those resources attributable to Global
Petroleum Ltd at its working interest of 78%. These numbers are not
net of the 5% royalty.
*** The operator of the licence is Global Petroleum Namibia
Limited, a 100% subsidiary of Global Petroleum Exploration Limited,
which is a 100% subsidiary of Global Petroleum Limited.
"1U, 2U and 3U" denotes the unrisked low, best and high
estimates respectively qualifying as Prospective Resources, and
where there should be at least a 90%, 50% and 10% probability
respectively that the quantities recovered will equal or exceed the
estimates.
"Risk Factor" is the estimated probability that exploration
activities will confirm the existence of a significant accumulation
of potentially recoverable petroleum. This, then, is the chance or
probability of the Prospective Resources maturing into a Contingent
Resource. Where a prospect could contain either oil or gas the
hydrocarbon type with the higher probability of being discovered
has been listed in the table.
Prospective Resources Cautionary Statement (in accordance with
AIM Listing Rules): the estimated quantities of petroleum that may
be potentially recovered by the application of a future development
project(s) relate to undiscovered accumulations. These estimates
have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of
potentially moveable hydrocarbons.
Competent Person - Global
The petroleum resources information in this release is based on,
and fairly represents, information and supporting documentation in
a report compiled by Paul Howlett, who is a qualified person for
the purposes of the AIM Guidance Note for Mining, Oil and Gas
Companies. Paul is Consultant Exploration Manager for Global
Petroleum and director/principal of Energy Explorers Limited. He
has a Master's Degree in Sedimentology from Birkbeck College of the
University of London , is a Member of the American Association of
Petroleum Geologists and has 28 years of experience in the oil and
gas industry. Mr Howlett has consented in writing to the inclusion
of the petroleum resources information in this announcement in the
form and context in which it appears.
For further information please visit: www.globalpetroleum.com.au
or contact:
Global Petroleum Limited
Peter Hill, Managing Director & CEO +44 (0) 20 3 875 9255
Andrew Draffin, Company Secretary
Panmure Gordon (UK) Limited (Nominated
Adviser & Sole Broker) +44 (0) 20 7886 2500
Corporate Finance: Nicholas Harland /
Ailsa MacMaster
Corporate Broking: Hugh Rich
Tavistock (Financial PR & IR)
Simon Hudson / Nick Elwes / Barney Hayward +44 (0) 20 7920
3150
FURTHER BACKGROUND
PEL0094 - Prospectivity
Plays have been estimated in: (1) Upper Cretaceous and Paleocene
sandstones, which includes the Marula prospect, but with further
potential in both the east and west of PEL0094; (2) Lower-Upper
Albian basinal sandstones in the south-eastern part of PEL0094
(same age play as was proven by the Cormorant-1 well) and (3) Lower
Albian-Upper Aptian shallow water carbonates, which includes the
Welwitschia Deep prospect, but with further potential identified in
the NE of PEL0094.
The prospective resources are all interpreted to be sourced from
the Aptian marine "Kudu Shale" mudstone, which is a world-class
quality source rock in the wells at Kudu, Moosehead-1, Murombe-1
and Wingat-1. At the latter, also within the Walvis basin like
PEL0094, high-quality, light oil was recovered to surface.
Gas has been sampled in seabed cores to the east of Welwitschia
Deep prospect and immediately south of the Marula prospect and
within PEL0094. This gives credence to the interpretation that the
source rock has been buried within the licence to, at a minimum,
the main oil window of maturity.
The Welwitschia Deep prospect is a fault and dip-closed
structural trap, as are the Gemsbok, Lion and Dik Dik prospects in
the company's PEL0029 licence which is immediately adjacent to
PEL0094 to the west. The Repsol operated Welwitschia-1A well, which
was drilled in the western part of Block 2011A in 2014, primarily
targeted Upper Cretaceous sands on the crest of a large structure
but did not encounter a reservoir. However, Global has now
quantified part of the significant prospectivity in the deeper
Albian Carbonates (Welwitschia Deep), which Welwitschia-1A did not
reach.
The Marula prospect is a combination stratigraphic-structural
trap, where the Upper Cretaceous, deep water sandstones pinch out
to the west onto the Welwitschia structure. The reservoir is the
same age as the target of the Welwitschia-1A well where the sands
were found to be absent, thus providing strong evidence of an
excellent lateral seal to the north west of the Marula prospect.
The reservoir for Marula is proven at the 2012/13-1 well 100
kilometres to the south-east, where light and heavy oil was
extracted from well samples.
Location of PEL0094 (Block 2011A)
Block 2011A covers an area of 5,798 square kilometres offshore
northern Namibia in water depths ranging from 400 to 1,500 metres.
It is adjacent and to the east of Global's current Licence PEL0029
as shown in figure 1 below.
http://www.rns-pdf.londonstockexchange.com/rns/4118T_1-2020-7-19.pdf
Participating Interests in PEL0094
Global is the operator of the licence and the participating
interests are:
78% Global Petroleum Namibia Limited** (100% owned subsidiary
of Global Petroleum Limited)
17% National Petroleum Corporation of Namibia (Proprietary)
Limited ("Namcor", the Namibian State Oil Company)
5% Aloe Investments Two Hundred and Two (Pty) Ltd ("Aloe",
a private Namibian company)
** Global Petroleum Namibia Limited also holds the Company's
interest in PEL0029 and was formerly known as Jupiter Petroleum
(Namibia) Limited.
Namcor and Aloe are carried by Global.
Work Programme Commitments for PEL0094
(a) Initial Exploration Period Years 1 and 2
-- Undertake geological, geochemical and geophysical and related
studies of all the data, including a gravity and magnetic study as
well as a source rock and basin modelling study
-- Licence the existing 2010-vintage 3D seismic data survey, and
all 2D seismic data of reasonable quality and reprocess it.
(b) Initial Exploration Period Years 3 and 4
-- If the Company elects to enter into years 3 and 4, then
additionally the Company will acquire and process two thousand
(2,000) square kilometres of 3D seismic data in the Eastern
Area
-- If the Company elects not to enter into years 3 and 4, it shall relinquish the Block.
(c) First and Second Renewal Exploration Periods
The Company will then have the right to enter the right to enter
the First and Second Renewal Periods of 2 years each by committing
to the work programmes in the Petroleum Agreement.
Brief description of the basis on which the prospective
resources are estimated
Global has examined data from nearby wells and used that to
interpret its current 3D and 2D seismic dataset to establish the
extent and thickness of the reservoirs and the structural
configuration of the area. Petrophysical results from these wells
and analogous information from relevant plays have been used to
estimate inputs to the probabilistic software used to calculate the
prospective resources, including values for porosity, net to gross,
oil shrinkage and recovery efficiency.
Further activities and timings
Global is in the process of licensing further 2D seismic data in
the licence area and outside it in order to tie to a key well. A
reconnaissance amplitude with offset (AVO) study will be carried
out on the 3D seismic dataset with particular emphasis on the
Marula prospect.
Global will now re-start the farmout process as the Marula
prospect should be particularly appealing to certain potential
farminee companies.
If the results of this work are encouraging, then a 3D seismic
data survey may be acquired (subject to farmout) to fully cover the
southern margins of the Marula prospect and better define leads
other parts of the licence. At that point it is intended to drill
an exploration well on the most attractive target.
-ends-
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END
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