Global Petroleum set to start Namibian license farm-out

Australia-based oil company Global Petroleum will soon begin a farm-out process for its Namibian Blocks 1910B and 2010A.

Global said on Friday that the farm-out process would shortly begin with the intention of future work on the blocks being financed by a farminee.

Global is the operator and holds an 85 percent working interest in the Petroleum Exploration Licence No. 0029, covering the two blocks.

The company has appointed Stellar Energy Advisors to advise Global in relation to the farm-out.

Stellar Energy Advisors is a specialized, independent advisor providing acquisition and divestment services to upstream companies in the international oil and gas business. Recently, Stellar acted as advisor to Tullow Oil in its successful farm-outs of Namibian Licenses PEL 30 and PEL 37 to ONGC Videsh.

Global CEO Peter Hill said: “Following the publication of the CPR, which has confirmed the high level of prospectivity on our Blocks, we feel that the time is now right to commence a structured farm-out process.

“We have noted the improving investment climate for upstream E&P generally, and in particular the recent entry of major IOCs and NOCs into Namibian exploration. We also regard Stellar as the advisor best placed to assist us in the farm-out, given their extensive technical knowledge of Namibian E&P and their recent successes in advising on farm-outs in the country.”

The license was originally issued on December 3, 2010, and covers 11,730 square kilometers located offshore Namibia in water depths ranging from 1,300 meters to 3,000 meters.

The minimum work program for the one-year extension of Phase 2 is the acquisition of 600 square kilometers of 3D seismic data, contingent upon Global concluding a farm-out agreement with a third party to fund the acquisition of the 3D data. If the 3D acquisition is not completed during the Phase 2 extension period, it may be carried over into Phase 3.

During Phase 3, the commitment is to drill one well, depth and location to be agreed, unless the Ministry and Global agree that circumstances dictate otherwise.