Global Petroleum updates resource estimate at offshore Namibia block

Global Petroleum announced ab updated estimate of prospective resources for PEL0094, or ‘Block 2011A’, offshore Namibia on Monday, 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.

The AIM-traded firm holds a working interest of 78%, and is the operator.

It said a total of 881 million barrels of unrisked gross prospective resources had been estimated in PEL0094 in two prospects, of which 687 million barrels were net to Global.

Those had been estimated using a probabilistic method, the board said, adding that the prospective resources were based on the 3D and 2D seismic data and geological information, including analogues, to which the company had access.

As it had expected, the interpretation of the 3D seismic data led to increased confidence in the two prospects previously identified - Marula and Welwitschia Deep - the board said.

The Marula prospect is a distal pinchout of Cretaceous sandstones onto the Welwitschia high, with Global's interpretation of the 3D data revealing a “significant amplitude anomaly” whose down-dip edge conformed with structure, which had resulted in the geological chance of success of Marula being increased to 18% from 8%.

Global said the Welwitschia Deep prospect had also been confirmed by interpretation of the 3D data, with the Albian carbonate reservoir having best estimate unrisked gross prospective resources of 671 million barrels of oil, with 523 million barrels net to Global, with a geological chance of success of 17%.

“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,” said chief executive officer Peter Hill.

“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.”

At 1250 BST, shares in Global Petroleum were up 4.48% at 1.2p.