AfrOil: Global Petroleum shares surge 60% on potential farm-in deal in Namibia

AIM-listed oil and gas exploration company Global Petroleum has seen a 60% surge in its share price owing to investors’ increased interest in its Petroleum Exploration Licence 94 (PEL94) in Walvis Basin offshore Namibia.

In a market update, the company said it was in early commercial discussions with a potential operating partner for a farm-in agreement, which could be “transformational”. Proactive Investors reports that in early trading on August 12, the company’s stock was up 0.039p to 0.1p.

Global is the operator and holds a 78% participating interest in PEL94 (Block 2011A) in the Walvis Basin, offshore Namibia. This covers 5,798 square kilometres in water depths ranging from 450 metres to 1,550 metres.

Namibia’s state oil company NAMCOR has a 17% carried interest and private company Aloe Investments Two Hundred and Two (PTY) Ltd has a 5% carried interest.

According to Global, a tie-up could help it exploit the estimated 2.7bn barrels of oil in the licence area, significantly boosting the upstream explorer’s prospects.

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