Global Petroleum to license Namibian block seismic data in push to conserve cash

Oil and gas company Global Petroleum has agreed to license pre-existing 3D seismic data in its 2011A (PEL0094) offshore Namibia Block.

Global Petroleum said on Tuesday that this data, acquired by previous licensees in 2010, covered the company’s Welwitschia Deep prospect and Marula lead, and would enable precise mapping of these features.

Once this is complete, Global will update Prospective Resources and chances of success for Welwitschia Deep and Marula.

In consideration of the right to license this data Global has agreed to transfer to National Petroleum Corporation of Namibia (NAMCOR) a seven per cent participating interest in PEL0094.

NAMCOR holds an existing 10 per cent carried interest as required by the Namibian Government, and its total interest in PEL0094 will, therefore, be 17 per cent, carried to the first production.

Aloe Investments, a private Namibian company holds a five per cent interest, carried through exploration. Global will hold a working interest of 78 per cent and will remain the operator of the license.

The company added that the 3D seismic survey covered an area of 1,583 square kilometres, and being only 10 years old is considered to be of relatively modern vintage. The vast majority of the survey is in PEL0094 (Block 2011A), with the remainder in Block 1911 to the north.

It is worth noting that the 2014 Welwitschia-1A well, which was drilled by previous licensees, was abandoned before reaching the underlying Welwitschia Deep prospect and was drilled to the west of the Marula lead, located in the Upper Cretaceous – the primary target of Welwitschia-1A.

Peter Hill, Global Petroleum’s CEO, said: “Finalizing this data for equity deal with our partner, NAMCOR, is a major step forward for Global, enabling us both to conserve cash and to advance our exploration program for PEL0094 very significantly.

“We wish in particular to thank NAMCOR for working with us to conclude this agreement, notwithstanding the necessary COVID-19 related restrictions – and resulting logistical challenges – which currently affect us all.“