Global Petroleum Receives Approval for Next Phase of Development

Shares in Global Petroleum experienced a significant boost on Monday after the company announced that it has received approval from the Namibian government to enter the next phase of development for its PEL 94 petroleum license in the country.

Positive Market Response

Shares were up 0.03 pence, or 21%, at 0.18 pence at 0727 GMT, reflecting the positive market response to the news.

Advancing to First Renewal Period

As an AIM-listed energy company, Global Petroleum, along with its partners, will now proceed to the first renewal period (FRP), which will last for two years until September 2025. The approval from the Namibian mines and energy ministry paved the way for this development.

Work Commitment

During this period, the work commitment will include acquiring, processing, and interpreting 2,000 square kilometers of 3D seismic data. Additionally, there are plans to drill a well based on the results obtained. It is worth noting that the original well commitment for the FRP was firm, rather than contingent.

Waiver of Relinquishment Requirement

In a favorable move, the ministry has waived the usual requirement to relinquish half of the license area at the end of the current initial exploration period (IEP). This decision allows Global Petroleum to retain all the prospectivity of the license.

Successful Outcome

Global Petroleum expressed its satisfaction with the grant of the two-year FRP term, which surpassed their expectations of receiving a further one-year extension to the IEP. Coupled with the waiver of the relinquishment requirement, the company views this outcome as a success.