Global Petroleum announce interim financial report for the half-year ended 31 December 2011

Thursday, March 15, 2012
  • The second Eagle Ford well in which Global has an interest (Tyler Ranch EFS #2H) commenced production in August 2011.
  • The combined average daily production rate of the nine (9) Leighton Olmos wells for the reporting period was a gross 1,095 boepd (436 bopd and 3,953 mcfgpd) with Global's beneficial interest (11.25% NRI) being 123 boepd.

Operating Results

During the six months ended 31 December 2011, the consolidated group recorded a profit after tax of $222,695 (six months ended 31 December 2010: loss of $839,737). This is a 126% increase compared to the previous corresponding period and is mainly attributable to several Leighton Project wells commencing production.

Consolidated revenue for the six month ended 31 December 2011 was $1,154,413 (six months ended 31 December 2010: revenue of $573,507). This represents an increase of 101% resulting from production commencing in the second Eagle Ford well and further wells commencing production in the Leighton Olmos area.

Board Changes

Mr Peter Hill, a highly respected energy industry executive, commenced as Managing Director and Chief Executive Officer of the Company in September 2011. Mr Ian Middlemas, a Non-Executive Director, and Mr Clint McGhie, a Non-Executive Director and Company Secretary, retired on 31 December 2011. On the same day, Mr Peter Dighton and Mr Damien Cronin, experienced consultants to the oil and gas sector, were appointed Non-Executive Directors of the Company. Mr Cronin was also appointed Company Secretary.

Principal Activities

Leighton Project


The second Eagle Ford well in which Global has an interest (Tyler Ranch EFS #2H) commenced production in August 2011.

Total production from the two Eagle Ford horizontal wells (Tyler Ranch EFS #1H and #2H) was 98,512 boe (84,654 bo and 83,147 mcfg) for the December Quarter or 1,071 boepd.

Global's beneficial interest (NRI) in the production is 5.95% or some 5,861 boe for the reporting period or 63.8 boepd.
Global has a 7.939% working interest in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. Global's interest in the Leighton Project also includes a 15% working interest in approximately 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation.

The ninth Leighton Olmos well - Peeler #3 commenced production in August 2011.

Leighton Project (continued)

The combined average daily production rate of the nine (9) Leighton Olmos wells for the reporting period was a gross 1,095 boepd (436 bopd and 3,953 mcfgpd) with Global's beneficial interest (11.25% NRI) being 123 boepd.

Olmos

The Company appointed Houston based Albrecht & Associates to seek buyers for its interest in the Olmos production wells and related leases which form part of the Leighton Project. The sale follows the lead of Texon, the major participant in the Leighton Project which also sought buyers for its Olmos assets.

The Company announced on 8 March 2012 that it completed a Purchase and sale Agreement with a US based purchaser, SV Resource Partners LLC. The Company's proceeds from the sale amount to US$2.8 million.

Eagle Ford

The Company announced on 27 February 2012 that it has also appointed Houston based Albrecht & Associates as well as RBS Morgans Limited to seek buyers for its interest in the Eagle Ford production wells and related leases which form part of the Leighton Project. The sale follows the lead of Texon, the major participant in the Leighton Project which is seeking buyers for its Eagle Ford assets. The buyer identification aspect of the sale process has commenced.

Acquisition of Jupiter Petroleum Limited

Final conditions precedent of the acquisition of Jupiter Petroleum Limited ("Jupiter") were satisfied in August 2011 following approval of the transaction by shareholders at a General Meeting on 19 August 2011, and settlement occurred on 26 August 2011, including issue of the consideration shares and reimbursement of costs incurred in connection with obtaining the licence and other reasonable costs.

The acquisition of Jupiter enables Global to participate in the prospective and active exploration province of offshore Namibia and other areas in Africa and position itself as an African focused oil and gas explorer.

Namibian Project

The Namibian Project consists of an 85% participating interest in Petroleum Exploration Licence Number 29 ("Licence") held by Jupiter (a 100% subsidiary of Global) covering Offshore Blocks 1910B and 2010A in the Republic of Namibia. The Licence, issued on 3 December 2010, covers 11,730 square kilometres and is located in offshore Namibia in water depths ranging from 1,200 meters to 3,000 meters.

Although only a few wells have been drilled in the area, they have established the presence of oil and gas-prone source rocks, good potential reservoirs and migrated hydrocarbons in the region, making this an attractive frontier play. It is believed that the regional basin or basins were formed in response to thermal subsidence following the rifting preceding the separation of Africa from South America.

Two leads had previously been identified in the licence area based on an examination of the limited historical data available.


Article Tags

Global Petroleum Wessex Exploration United States North America Acquisitions & Mergers Finance AIM Operations Update Production Update Gulf Of Mexico Houston


This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More


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