Petroleum Africa
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Monday, May 3, 2021
Global Petroleum has successfully raised £1,000,000 million in aggregate before costs, through the Placing of 222,222,222 Ordinary Shares at a Placing Price of 0.45 pence per share.
As a further component of the Placing, 111,111,111 Warrants are also being issued at an exercise price of 0.9 pence per share for a period of 2 years (one Warrant for every two new Ordinary Shares). In the event the Warrants are exercised in due course in full, associated proceeds will be £1.0 million, with the result that the Company will have raised gross proceeds of £2.0 million at a weighted average price of 0.60 pence per share.
Monecor (London) Ltd, trading as ETX Capital, acted as the Company’s sole broker in respect of the Placing, and will serve as Joint Broker to the Company effective upon Admission of the Placing Shares.
Rationale for the Placing
In January 2021 the Company announced its updated Prospective Resources on its Namibian license PEL0094. The inclusion of seven new leads, in addition to the Marula and Welwitschia Deep prospects, resulted in a threefold increase to 2,284 million barrels of Best Estimate (P50) Prospective Resources of oil net to Global, confirming the Company’s view that the acreage is highly prospective.
Following this, Global then commenced a farm-out process, which is currently underway.
The Company has completed its work commitments under the current license sub-period, which expires in September 2021. The commitment for the next sub-period is to shoot a 2,000 sq km 3D seismic survey.
Namibia has seen multiple farm-ins or acquisitions completed since 2017 by companies such as Qatar Petroleum, Total, ONGC, Kosmos, and most notably ExxonMobil. Moreover, there are reported to be several highly prospective exploration wells planned in the coming months, notably Total’s Venus-1 well, and Shell’s well in PEL0039, both in Namibia’s Orange Basin.
The Placing will position the Company to enter into the next sub-phase of PEL0094 in September 2021. Proceeds from the Placing will be used to part-fund the cost of the future license work program commitment, and for general working capital purposes.
Peter Hill, Global Petroleum’s CEO, commented: “We are very pleased to have raised additional capital which enables us to progress our exploration activities on PEL0094, and to welcome new shareholders to the Company. We look forward to providing further updates in due course.”
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