"London-listed Global Petroleum is in talks with a company interested in farming in to its exploration block offshore Namibia, news that triggered a more than 110% rise in the junior player’s share price. Global operates Petroleum Exploration Licence (PEL) 94 in Namibia's Walvis basin, a play that is garnering increasing interest from industry amid dwindling opportunities to enter the red-hot Orange basin.
Global said it has “entered into early commercial discussions with a potential operating partner” for PEL 94, after having “seen increased interest in the data room for PEL 94 from various parties”. As a result, the company's share price shot up by 111.5% to 0.14 pence (0.178 US cents) at the end of morning trading in London, having peaked at one time at 0.19 pence.
If successful, Global believes a farm-in “could be transformational”, with a strategic partner potentially funding exploration activities in a licence estimated to hold more than 2.7 billion barrels of prospective oil resources. The company said it is “hopeful” of reaching a “mutually beneficial agreement with the unnamed partner after further due diligence work and negotiations."
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