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” 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 quantitiesrecovered 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.
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