Global Petroleum Limited revealed Friday that its permit applications in Italy are progressing towards approval and claimed that it was pursuing new asset acquisition opportunities.
The company’s Italy applications, which cover four blocks in the southern Adriatic offshore Puglia, are nearing environmental impact assessment approval (EIA), according to Global Petroleum. EIA approvals have recently been granted by the Italian authorities to other exploration and production companies with long-standing license applications in the offshore Adriatic, which Global Petroleum regards as very encouraging for the progress of its own applications. The Adriatic has seen significant interest by the oil and gas industry recently, with licensing rounds being held in both Croatia and Montenegro.
Global Petroleum also confirmed that the initial exploration period of the license covering blocks 1910B and 2010A, offshore Namibia, was extended by one year to December 2015, in exchange for an additional work program that involves further modelling using both seismic and gravity data. Early results of the combined seismic and gravity work already carried out were “very encouraging with regard to the hydrocarbon potential in Global's offshore blocks”, according to the company. Global Petroleum stated in a press release that it was intending to enter into discussions with the Namibian authorities regarding the future exploration in the blocks.
The company claims that it remains in a strong financial position, which will help fund work activity on its Namibian acreage and its Italian application interests. Global has also stated that its current financial position will help it “implement a change of geographical focus through acquisition” and revealed that, as of March 31, 2015, the company had a cash position of $13.5 million. Global says that it has held detailed discussions with various parties with a view to concluding an acquisition of assets, which would add “significant near-term value”. These assets would be funded from internal resources and, if market conditions permit, the raising of further capital. Global recently commenced a program to reduce its corporate costs in response to the lower oil price environment and the time it has taken to find a value enhancing acquisition.
Global's CEO, Peter Hill, commented in a company statement:
"We have taken steps to reduce our cost base to reflect the current market environment. On the acquisition front, I believe that the wind is now blowing more favorably in our direction and that it is now more likely that we will be able to make an acquisition at realistic prices which will deliver value to our shareholders. However, we remain extremely selective and are pleased that previously unrealistic expectations by vendors have modified as we have held discussions, and are now at levels where we are more optimistic of concluding a value-creating transaction. Our Italian permit applications cover acreage which we believe holds excellent potential and it is pleasing to note the progress being made towards licence awards by Global and other companies. I look forward to reporting further progress on our initiatives later in the year."
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