Life After Ugandan Drilling

Monday, Jun 15 2009 by
8

Iti-1 Completed and abandoned with a clear implication that GBP are not going to use any further resources in this area.

 I am interested in what may happen in the shorter term.  Based on current SP valuation 15/6/09 Global are £10.5m  and  what they do have  available to them is approx. £13.5m and 25% of the EA5 Licence.  I am ignoring the pending legal action and Leighton as I do not believe this will have any significance in the next 9-12 months.

Whilst there is substantial overlap with TRP I am taking a view they will keep the two companies separate as Namibia is LT and they will have plenty of exposure to Uganda via TRP anyway.  Surely the GBP vehicle will have looked at a number of plays in the interim period which due to the unfortunate circumstances at Iti-1 could now be brought to the forefront.  The question in my mind is which territories would appeal to management and how quickly they realistically may now move.  For a number of months it has been said how many O&G plays have been depressed due to lack of funding, well GBP may be about to step up to the plate but where ? 


Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
8 thumbs up
0 thumbs down
Share this post with friends



Global Petroleum Limited is engaged in the oil and gas exploration, development and production. The Namibian Project consists of an 85% participating interest in Petroleum Exploration Licence No. 002 (Licence) covering Offshore Blocks 1910B and 2010A in the Republic of Namibia. The Licence covers 11,730 square kilometers and is located in offshore Namibia in water depths ranging from 1,300 meters to 3,000 meters. On August 26, 2011, the Company announced that it had completed the acquisition of Jupiter Petroleum Limited (Jupiter) which holds prospective oil and gas exploration interests in offshore Namibia and in offshore Juan de Nova, a French dependency in the Mozambique Channel. On February 28, 2012, the Company sold its interest in the Olmos production wells and related lease, which formed part of the Leighton Project. In June 2013, the Company sold Eagle Ford Shale assets. more »

Share Price (AIM)
3.68p
Change
0.0  0.0%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
7.5



  Is Global Petroleum fundamentally strong or weak? Find out More »


132 Posts on this Thread show/hide all

oilretire 30th Apr '10 73 of 132
2

:-)

One well doubles current production - not sure how much the other 5 have tailed off since 1st production though.

Texon Petroleum Ltd (ASX: TXN) has advised that that the sixth well on the Leighton Project, Tyler Ranch #5, has begun to flow oil and gas at the gross rate of 445 boepd from the Olmos reservoir (comprising 420 bopd and 150 mcf of gas per day) through a 8/64" choke. reservoir (comprising 420 bopd and 150 mcf of gas per day) through a 8/64" choke. reservoir (comprising 420 bopd and 150 mcf of gas per day) through a 8/64" choke. through a 8/64" choke.

The combined production rate of the five (5) existing Leighton wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2, Tyler Ranch #3 and Tyler Ranch # 4) at this time is a gross 460 boepd with Global's Working Interest share being 69 boepd.

| Link | Share
oilretire 30th Apr '10 74 of 132
1

Looks like number 6 is a typical well, with other initial wells achieving 300 to 500 bbl/d to start with before settling

| Link | Share
REO100 30th Apr '10 75 of 132
2

Tower have confirmed renewal of licence EA5, which might have slammed some investors into reverse as drilling is indicated early in the second year of renewal.

Exploration will now continue for another two years, until March 27, 2012. The forward programme is under discussion with the Government, but thefirst yearof activities is expected to be focused on geophysical operations to determine prospects for drilling early in the second year.  (my bold)

Now that seems to leave a lot of spare time and cash for GBP to consider their options - today from the quarterly report we have the standard statement:

The Board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector, both domestic and overseas, which may enhance shareholder value.

In these nervous times GBP seems to be a good place to be with cash value approx. 10p but I am thinking some excitement might not be amiss so hopefully the next quarterly statement might not need the above paragraph.

Reo

 

 

 

 

| Link | Share
oilretire 8th Jun '10 76 of 132
2

Thanks to sawney over at the Fool for a TXN note.

http://www.texonpetroleum.com.au/docs/investor/research2010/tplsar100607.pdf

Top of page 5 suggests we will get two more Leighton Olmos development wells in H2 2010 - best get a move on then..........

They have a $4m cash balance which is for the two Olmos development wells

The note seems to be a 'sell' for the Eagle Ford shale gas project which spans four areas, one of which is Leighton. IMO I am still expecting GBP to increase position here. TXN clearly needs it holding 92% of the EFS project and......

While Texon is currently somewhat
capital constrained, it has identified
several options to fund its resource
play development

| Link | Share
REO100 26th Jun '10 77 of 132
2

TRN - trading halt, capital raising.

http://www.texonpetroleum.com.au/docs/investor/announce2010/tplasx100625.pdf

Not entirely sure how to view this but I would assume farm out negotiations have not progessed as required or maybe capital funding and farm out as well ?

Reo

| Link | Share
REO100 30th Jun '10 78 of 132
4

TXN - successful capital raising - earmarked for 3 Eagle Ford horizontal wells at Leighton.

http://www.texonpetroleum.com.au/docs/investor/announce2010/tplasx100629.pdf

Indicates first well is planned for August, also a bit of detail of estimated cost if trouble free well - A$4.8M, so GBP's share would be approx. A$1M per well if no complications.

Reo

| Link | Share
REO100 23rd Jul '10 79 of 132
2

Announcement not through yet, nothing new for UK shareholders !

'DRILLING TO COMMENCE ON SEVENTH LEIGHTON DEVELOPMENT WELL'

The planned August activity is likely to be of more interest.

Reo

| Link | Share
oilretire 13th Sep '10 80 of 132
2

Leighton updates out from Texon


7th Olmos well online at 350 boe/d

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01097401

It goes on to highlight that the next well(s) will be Q1 2011


1st Eagle Ford well expected to spud in 5 to 7 days

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01097402

Whilst it doesn't say so, I assume this is the 1st horizontal development well

| Link | Share | 1 reply
ohisay 13th Sep '10 81 of 132
1

In reply to oilretire, post #80

Everything going GBP's way at the moment as their cash pile of 27.9M AUD at the end of June keeps improving in sterling terms.

http://www.advfn.com/currency-converter/pound-to-australian-dollar.html

Current cash equivalent to 9.6p so todays rise to 10/10.5p has just broken through the cash level.

Some of us of course are hoping there is a big idea for the cash .However the cynic in me suggests it may be there some time yet.

| Link | Share
REO100 22nd Sep '10 82 of 132
1

I wondered if any had any ideas on where GBP maybe looking to become involved.  The sector is certainly 'lively' and GBP I guess have had quite sometime to consider options, but no progress is apparent.  In recent weeks it has attracted a bit of attention on a ADVFN thread, but no real substance apart from cash position ,TXN activity, option in Uganda and some director purchases.

I remain hopeful and still believe it was a good defensive move (now 1.5/2 yrs) on the basis of the cash position but apart from the activity with TRP (two drills, unsuccessful) and minority share with TXN (not sure the EF drill will prove that meaningful - GBP did not increase stake and TXN raised funds via placing) there really is not much more known as to future activity.  With the link with TRP they perhaps might take a small stake in Namibia, but that is some way off - late next year ?

Any thoughts ?

Reo

 

| Link | Share
REO100 23rd Sep '10 83 of 132
2

Drilling has commenced on first Eagle Ford Well and sounds relatively upbeat.

http://www.investegate.co.uk/article.aspx?id=201009230808341710T&fe=1

Reo

| Link | Share
REO100 30th Sep '10 84 of 132
3

Final results, cash as hoped near enough 9.75p.

Sounding a bit rampy but I hope they have identified some new opportunities, they have had plenty of time.  Also useful looking at their US revenue, perhaps some relevance when trying to calculate revenue for other companies in a similar area.

http://www.investegate.co.uk/article.aspx?id=201009300853375832T&fe=1

Reo

| Link | Share
ohisay 8th Oct '10 85 of 132
5

Slightly off topic here but I notice the Australian dollar at one point yesterday hit 1:60 to the pound as it continues its seemingly relentless rise .
Against the US dollar the OZ dollar has hit its strongest level since 1983,
http://www.telegraph.co.uk/finance/currency/8047637/Australian-dollar-hits-27-year-high.html

The dollar was strengthened by monthly government figures that showed the unemployment rate steady at a low 5.1 per cent in September, with 49,500 new jobs created in that month, well ahead of forecasts.
Most of the new jobs were reported to have been created in the booming domestic mining industry.
Analysts in Australia now expect the dollar to reach parity with the US dollar in the next few months.

That gives GBP cash end June as 9.9 p per share -13% above the share price.Rather unreasonably marked down over the past few weeks on this basis aside from anything else .

[Anyone wanting a similar share might consider Leyshon resources (LRL).Oz dollar cash and isable - 13.5p cash against current price of 12.5p  with some potentially good news in the offing.]

 


| Link | Share
ohisay 11th Oct '10 86 of 132
1

 

More good news..

http://www.investegate.co.uk/Article.aspx?id=201010110740061541U

Texon Petroleum Ltd (ASX: TXN) has advised that the Tyler Ranch EFS #1H well has drilled into the Eagle Ford Shale at the depth of 3,252m (10,670ft) and has encountered good oil and gas shows.
The well will now drill 1,372m (4,500ft) laterally within the Eagle Ford at which time production casing will be run. Drilling and casing the well are anticipated to take 12 -14 days.








| Link | Share
emptyend 11th Oct '10 87 of 132
1

RNS update today ....good oil and gas shows

It may also be of interest to note a big deal elsewhere in the Eagle Ford play, where they have paid $10,900 per acre on average (presumably acreage that is already producing would be a good deal more than the average)

| Link | Share
REO100 11th Oct '10 88 of 132
2

Encouraging update on EF first well.

http://www.investegate.co.uk/article.aspx?id=201010110740061541U&fe=1

With strong cash position and an ADVFN board that has shown some recent excitement - this might give the SP so impetus.

Reo

 

| Link | Share
corkboy 25th Oct '10 89 of 132
1

Another encouraging EF update:

http://www.investegate.co.uk/Article.aspx?id=201010250719409246U

Up 9.5% today.......

| Link | Share
ohisay 29th Oct '10 90 of 132
1

Quarterly report out today .
Cash of 26.9m Oz dollars-equivalent to 15.4c per share or 9.5p per share.

http://www.investegate.co.uk/Article.aspx?id=201010290730082315V

However what was most interesting was - that for the first time as I recall - they've actually said they've extracted a few digits and looked at a number of projects to spend that cash on.

A number of new opportunities were assessed during the quarter and the Company will continue to evaluate these opportunities as they are presented.

Dare one hope ...

| Link | Share | 1 reply
REO100 29th Oct '10 91 of 132
1

In reply to ohisay, post #90

I think it is the time to hope.

I entered on the basis of the cash backing and that has been a safe position - but now is the time to grasp an opportunity - may be they should look at East Africa !

Reo

| Link | Share
DearLeader 29th Oct '10 92 of 132

Yes, I would like to think that Global have taken a look at what KEY have to offer for sale in Tanzania. Maybe they are/would be baulking at what may be being asked for it by KEY. Surely that 20% of Nyuni and KN-1 along with West SS looks quite a good deal. What price would KEY sell it for though? Based on their market cap KEY wouldn't be able to ask too much I suspect

| Link | Share

What's your view on this thread? to Comment Now

 
 
You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter

 Are Global Petroleum's fundamentals sound as an investment? Find out More »





Stock Picking Tutorial Centre


Related Content

Stock Picking Simplified

Stockopedia takes your stock picking to the next level with cutting edge Stock Reports & Screening tools.


Get started
or Take a Tour to find out more.