Global Petroleum upbeat on Italy appeal dismissal after fundraising

Global Petroleum said in an update on Wednesday that it had raised £0.25m at the end of August, through the placing of 250 million shares at a placing price of 0.1p each.

The AIM-traded firm previously announced that the Namibian Ministry of Mines and Energy had given approval for the company and its partners to proceed to the first renewal period of its Namibian licence PEL 94, with a duration of two years from September 2023 to September 2025.

It said the renewal confirmation was originally expected in June, and while awaiting receipt, three of the company's four directors agreed to defer their directors' fees from July, as part of actions being taken to preserve its financial resources.

Following receipt of the proceeds of the placing, and after actual and estimated costs associated with it, the firm said it had cash balances of around $0.5m as at 6 September.

In Italy, Global Petroleum said it had been informed that appeals against the environmental decrees granted in its favour by the Italian authorities had recently been dismissed by the Council of State.

The actions were brought by the Municipality of Margherita di Savoia in Puglia against the relevant Italian ministries and entities, with Global joined as an ‘interested party’, and related to its applications known as d 82 F.R-GP and d 83 F.R-GP.

Global said it had been informed that there were two similar cases still outstanding, and the same outcome was expected in relation to them.

The farm-out process was continuing in respect of its Namibian licence PEL 94, meanwhile, with further announcements to be made when appropriate, while the firm said it would release its results for the year ended 30 June in the second half of October.

“In light of the recent judgement, and having provided several months ago the further required documentation to the relevant Ministries, the company is advised that it is now entitled to pursue with the Italian authorities the grant of exploration permits in relation to d 82 F.R-GP and d 83 F.R-GP,” the board explained in its statement.

At 1130 BST, shares in Global Petroleum were up 3.63% at 0.14p.

Reporting by Josh White for Sharecast.com.