29th Apr 2015 11:16
LONDON (Alliance News) - Global Petroleum Ltd said Wednesday that it has launched an appeal to the French authorities over the renewal application for its Juan de Nova permit, and said it will continue to evaluate asset and corporate acquisition opportunities.
Jupiter Petroleum Ltd, a wholly-owned subsidiary of Global, previously had a 30% interest in the Juan de Nova permit issued in 2008. Hague and London Oil PLC had owned the remaining 70% beneficial interest in the permit during the first phase, but there was not enough time to convert the beneficial interest into a full legal title before the deadline for the permit's renewal.
As such Global has now applied for the renewal as a 100% interest holder and operator, although it has signed a deal with Hague and London to give it the right to apply to the relevant French authorities to take a legal title for up to a 50% working interest in the permit if the renewal is successful.
The fifteen month period in which the French authorities were required to respond to the application expired during the first quarter of 2015, and this silence is deemed to be a refusal under French law, so Global will now make an appeal to which the authorities have two months to respond.
The company got a year's extension to its initial exploration period for its Namibian license until the end of 2015. Global said it remains optimistic about the potential of the Namibian blocks, but is mindful of the "wider context". Industry and market sentiment has been hampered by disappointing drilling results in Namibia, it said, and by the current low oil prices.
The company said it is ready to commit a significant portion of its capital to new opportunities, but also will ook at corporate opportunities, which it believes are "likely to increase significantly in number" given the current market environment.
Shares in Global Petroleum are trading down 7.3% at 1.86 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Global Petroleum