Global Petroleum has raised £253,000 in aggregate before costs through a Placing of 421,666,666 Ordinary Shares.
Daniel Page, Executive Chairman of Global Petroleum commented:
“The primary purpose of the Fundraise is to ensure that the liabilities in relation to the obligations of the Company’s Walvis Basin licence PEL94 are completed to pre-agreed timelines set by the Namibia Government, as the directors now believe them to be. The funding will also allow us to have further working capital as we begin to look at other exciting opportunities within the sector which I am keen to integrate as part of Global’s portfolio of assets with this process starting shortly. Delivering long term shareholder value is fundamental for us as a new board.
The assessment of the liabilities and obligations of the Namibia License was a key agenda point of the new board as we see the potential of this asset and believe that it can be a significant value driver for the Company. I look forward to visiting the team in Namibia in the near future to explore this project further.
The directors have commenced a detailed exercise of cost review across the business, with a focus on ensuring funds are spent prudently but without compromising execution capability. All costs attributable to this exercise will be borne by the directors personally, who will also waive their compensation for the remainder of 2023.
We, as a board, are very excited for the future of Global and would like to thank the new investors for joining us at this stage and to the existing shareholders for the enthusiasm and support that has been shown to us in this short time. We look forward to their continued and future support as we pursue our multiyear goals for the business.”
In August the company announced it it had successfully raised another £250,000 in aggregate before costs for further technical work in relation to PEL 94 after the Namibian Ministry of Mines and Energy had given approval for the Company and its partners to proceed to the First Renewal Period of Walvis
Basin licence PEL 94, with a duration of two years from September 2023 to September 2025.
The work commitment for the FRP is to acquire, process and interpret 2,000 kms of 3D seismic data
carried over from the current Initial Exploration Period and to drill a well contingent upon the results of interpretation of the 3D Seismic. The original well commitment for the FRP – as specified in the Petroleum Agreement for PEL 94 – was firm, rather than contingent.
In accordance with standard provisions in the Petroleum Agreement, the Company and its partners
are obliged to issue a guarantee at the beginning of each main phase of the licence, including the FRP.
The guarantee is linked to the specified minimum exploration expenditure, which is the firm
work commitment for the FRP (the commitment cost of the 3D Seismic), with the precise quantum to
be agreed between Global and the Ministry, and has previously been negotiated as a low percentage
of the MEE.