Global Petroleum in Offshore Namibia 'Data for Equity' Deal
Image credit: Global Petroleum
Oil company Global Petroleum has exchanged part of its stake in offshore Namibia Block, 2011A (PEL0094), with NAMCOR, for a right to get access to pre-existing 3D seismic data over the block.
"This key data, acquired by previous licensees in 2010, covers the Company's Welwitschia Deep prospect and Marula lead, and will enable precise mapping of these features," Global said.
"Once this is complete, Global will update Prospective Resources and chances of success for Welwitschia Deep and Marula," it added.
As part of the deal, Global has agreed to transfer to National Petroleum Corporation of Namibia ("NAMCOR") a 7 percent participating interest in PEL0094.
NAMCOR already holds an existing 10 percent carried interest as required by the Namibian Government, and its total interest in PEL0094 will, therefore, be 17 percent, carried to first production.
Aloe Investments, a private Namibian company holds a 5 percent interest, carried through exploration. Global will, therefore, hold a working interest of 78 percent, and will remain operator of the license.
The 3D seismic survey covers an area of 1,583 square kilometers, and is only 10 years old is considered to be of relatively modern vintage, Global said.
The vast majority of the survey is in PEL0094 (Block 2011A), with the remainder in Block 1911 to the north
The 2014 Welwitschia-1A well, which was drilled by Repsol 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, commented: "Finalising 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."
