29th Oct 2018 13:03
LONDON (Alliance News) - Global Petroleum Ltd on Monday said it terminated its farm-out arrangement with Stellar Energy Advisors Ltd regarding an exploration licence in Namibia.
Shares in Global Petroleum were down 8.3% at 1.56 pence on Monday.
Global Petroleum holds an 85% interest in offshore petroleum exploration licence numbers 0029 and 0094, or PEL 0029 and PEL 0094, as operator. Stellar Energy had been conducting a structured farm-out process for PEL 0029 but this was terminated in the three months to September 30.
As yet, no suitable farm-in partner has been identified. Global Petroleum said it will continue to seek a farm-out arrangement.
During the September quarter, the oil exploration company secured a petroleum agreement to acquire block 2011A in offshore Namibia, within PEL 0094. PEL 0094 is located immediately to the east of PEL 0029. The licence for block 2011A was issued after the end of the quarter.
Tullow Oil PLC plugged and abandoned its Cormorant prospect, located to the south-east of PEL 0094, during the period as a result of non-commercial hydrocarbons. Global Petroleum said the result does not impact expectations for its own portfolio.
Global Petroleum's appeal against a European decree is scheduled to be heard in Rome in October and November, for which the company is working with Italian legal advisors. The decree covers four of Global Petroleum's licences in the southern Adriatic.
Related Shares:
Global Petroleum