Global Petroleum's subsidiary Jupiter Petroleum says extra time given to assess its acreage offshore Namibia has given it chance to see more potential.
The firm has been given an extension to its first renewal exploration period for License 29, on Blocks 1910B and 2010A in the Walvis Basin, offshore Namibia.
It had already agreed a reduced minimum work program, which mean reprocessing all existing 2D seismic lines across the retained portion of the licence and the acquisition of 800km of long offset 2D seismic data over the retained acreage, in place of the previous well commitment. Interpretation of the newly acquired 2D data was completed in October 2017.
The new information from the 2D seismic has significantly improved the prospectivity across the license in general and the Gemsbok prospect in particular.
Better imaging from the 2D data reveals that the known source rock intervals are likely to be within the oil generative window and this, combined with data showing repeating oil seeps along the faulted flanks of Gemsbok, has greatly improved the chance of a major oil discovery. Gemsbok remains the Company's primary exploration target.
The license extension was agreed by the Namibian Ministry of Mines and Energy for 12 months, to 3 December 2018. The ministry has also agreed entry into the Second Renewal Period (Phase 3) effective from 3 December 2018 for a period of two years.
Global, via Jupiter, holds 85% interest in the license, which was originally awarded in December 2010, and then covered 11,730sq km in 1300-3000m water depth.
In December 2015, the company had entered into the 24-month first renewal exploration period, or Phase 2, making a mandatory relinquishment of 50% of the license area.
The minimum work program for the one year extension of Phase 2 is the acquisition of 600sq km of 3D seismic data, contingent upon Global concluding a farm-out agreement with a third party to fund it. If the 3D acquisition is not completed during Phase 2, it may be carried over into Phase 3. The Phase 3 commitment is to drill one well.
Global has commissioned a competent persons report (CPR) on its Namibian acreage from consultants AGR Tracs. This is expected to be completed by the end of the year. Jupiter is operator with 85% interest, with partners NAMCOR and Bronze Investments holding 10% and 5% respectively, both as carried interests.
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