Global Petroleum Limited (LON: GBP) have seen their shares spike on Tuesday afternoon after the firm said operations in Namibia looked promising and praised the PEL0094 licence.
Global Petroleum Limited is an oil and gas, upstream exploration company presently focused on Africa and the Mediterranean. The Company’s principal assets are two exploration blocks located offshore Namibia.
Shares in Global Petroleum spiked 33.79% to 1.94p. 26/11/19 14:29BST.
The firm unveiled a best estimate resource at the licence of 964 million barrels, which sparked shareholder optimism.
Within that, the Albian carbonate reservoir at Welwitschia Deep is estimated at 772 million barrels with a probability of success of 15%.
“Our technical work to date on PEL0094 confirms the acreage is highly prospective. We are delighted our review of the data so far has confirmed the high level of prospectivity of PEL0094 generally, and of the Welwitschia Deep prospect in particular, which contains unrisked best estimate prospective resources of nearly 800 million barrels,” said Chief Executive Peter Hill.
“Specifically, our work suggests the Welwitschia-1A well, drilled in 2014 by previous licensees, was abandoned before reaching the underlying Welwitschia Deep prospect. Moreover, the 2014 well was drilled to the west of the newly identified Marula lead, located in the Upper Cretaceous which was the primary target of Welwitschia-1A.”
“These factors, together with the scale of the prospective resource numbers which we have released today, demonstrate that both Welwitschia Deep and Marula are very attractive targets,” added Hill.
Whilst Global Petroleum have seen major success today the energy and petroleum market has seen updates.
Nostrum Oil and Gas (LON: NOG) and Chariot Oil & Gas (LON: CHAR) have seen their shares dip following modest updates.
Additionally, Shell (LON: RDSA) and Total SA (LON: TTA) have seen their shares dip amid volatile oil prices and trading slumps.
Certainly, shareholders of Global Petroleum will be pleased with the update and this has been reflected in this mornings stock price increase
Shareholders will have to wait to see whether Global Petroleum can exploit further discoveries to give themselves a strong foothold in the market amid tough trading conditions and stiff competition.
