Global Petroleum Limited has informed on the significant progress made of its four applications for new acreage offshore Italy.
Over the course of the past year, the Board has reviewed a number of prospective areas within and around the central and southern areas of the Italian Adriatic Sea resulting in the grading of available acreage. The southern Adriatic offshore area has significant potential for oil and condensate generated from both Liassic and Triassic source rocks. The prospectivity of the area is further proven by the presence of the basinal Aquila discovery which tested 3,300 barrels of oil per day of 36° API oil from Cretaceous carbonates, and by several other discoveries surrounding the basin including Rovesti and JJ-3.
In August 2013, Global submitted its application and proposed work programme and budget to the Italian Ministry of Economic Development for four exploration areas offshore Italy. In accordance with Italian offshore regulations, Global had to meet certain technical and financial requirements. The Permit Applications were then published on 30 September 2013 in the Official Bulletin allowing other competitive bids to be made over the subsequent three months. No such bids were received and the next phase is for the Company to make an application within 90 days to the relevant authorities in relation to the environmental compatibility of the Permit Applications. The precise timetable for final award of the four Permits is dependent upon a satisfactory outcome to this process, and upon subsequent formalities in accordance with Italian legislation.
The southern Adriatic is currently undergoing a significant new phase of oil and gas exploration. There have been a number of recent applications in the Adriatic close to the Permit Applications. Adjacent to Italian waters, Montenegro has recently launched a licensing round, with Croatia likely to follow suit shortly. Seismic acquisition companies have begun large, multi-client 2D acquisition programmes across the entire basin, from Italy to Croatia. Finally, Shell and Petromanas have recently announced the Shiprag discovery onshore Albania, which is thought to be linked to the same petroleum source rock and similar reservoir to some of those identified in the offshore Adriatic.
The Company continues to pursue other opportunities in its areas of interest and remains confident of making an acquisition on terms that the Board considers acceptable to shareholders.
Commenting, Peter Hill, Global’s Managing Director and CEO, said: “We are delighted with the significant progress of our four applications offshore Italy, which we believe lie in and around a proven hydrocarbon basin in the southern Adriatic. Building a diversified portfolio of quality projects is a key component of the Board’s current strategy and we believe these permits have the potential to deliver future value for our shareholders. We look forward to making further announcements on progress and developments in due course.”
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Press Release, February 10, 2014