Global's Jupiter agrees extension on Namibian licence

The AIM-traded firm said the licence covers Blocks 1910B and 2010A in the Walvis Basin offshore Namibia.

In addition, it said the ministry had agreed entry into the Second Renewal Period, effective from 3 December 2018, for a period of two years.

Global, via Jupiter, holds an 85% participating interest in the licence, which was originally issued on 3 December 2010 and then covered 11,730 square kilometers in water depths ranging from 1,300 metres to 3,000 metres.

In December 2015, the company entered into Phase 2, making a mandatory relinquishment of 50% of the licence area.

Phase 2 was for a duration of 24 months.

The company said the renegotiated reduced minimum work programme involved the reprocessing of 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.

The new information from the 2D seismic had significantly improved the prospectivity across the licence in general, the board reported, and the Gemsbok prospect in particular.

It said better imaging from the 2D data revealed that the known source rock intervals were likely to be within the oil generative window and that, combined with data showing repeating oil seeps along the faulted flanks of Gemsbok, had “greatly improved” the chance of a major oil discovery.

Gemsbok remained the Company's primary exploration target.

“We would like to thank the Ministry of Mines and Energy for their help in constructing a practical framework for future operations in Global's Namibian acreage,” said CEO Peter Hill.

“The extension to Phase 2 and assurance of subsequent entry into Phase 3 gives us time and flexibility to find the right partner and also to progress the exploration of what we believe to be very exciting acreage.”