Global Petroleum subsidiary Jupiter Petroleum has had its first license renewal period for offshore Namibia agreed.
The First Renewal Period is for two-years, starting 3 December 2015, covering Petroleum Exploration License 29 covering blocks 1910B and 2010A in the Walvis Basin.
The license originally provided for a commitment to drill one well during the renewal period, but, Global says, "given prevailing market conditions, which are having a particularly negative impact on frontier exploration," the company and Namibian authorities have agreed a revised minimum work program comprising reprocessing of all existing 2D seismic and acquisition of 800km of long offset 2D over the retained acreage, after a mandatory 50% relinquishment.
Recent modelling of seismic and gravity data has increased confidence in a syn-rift oil play in the outboard or deep water region and the likely presence of both reservoir and source, according to Global.
Jupiter remains operator with an 85% interest in the two blocks, with partners NAMCOR and Bronze Investments holding 10% and 5% respectively, both as carried interests.
Global's CEO, Peter Hill, commented: "Whilst we continue to seek potential new opportunities, we also firmly believe that our position in Namibia has the potential to be rewarding for shareholders. After initially disappointing drilling results, we believe there is renewed interest in exploration offshore Namibia with the possibility that major players may take positions in offshore acreage in the coming months. Following our recent work, we regard our own acreage as being among the most exciting in the country, and the new commercial terms announced today will enable us to progress exploration on the block without over-commitment. Accordingly we are very happy to have renewed our license on the revised terms."