GBP - Global Petroleum

[Wysiwyg]

http://www.heritageoilplc.com/uganda.cfm[/COLOR]

Happily holding GBP at 17c :

Looks as if the Ugandan fields are going to Eni.

British oil explorer Heritage Oil (Frankfurt: A0NG6K - news) has agreed to sell petroleum exploration fields in Uganda to Italian oil company Eni (Milan: ENI.MI - news) in a deal worth up to $1.5 billion.

What's the go with this Heritage mob? Sitting on billions of barrels of oil in Kurdistan (75% to HOIL) and the share price hardly rates a mention.

 

[PubLunchMan]

GBP holds a 25% interest in an Ugandan oil play with potential reserves of up to 100M barrels. Importantly, Heritage/Tullow Oil boast a 100% success record in their neighboring Block 1 which promises multi-billion barrel potential.

GBP's Avivi-1 is set to spud by the 1st February- environmental approvals and rig hire contract soon to be announced...

DRILLING WITHIN THE ALBERT BASIN

The Albert Basin is part of the Albert Graben which is an onshore basin and straddles the border between the D.R. Congo and Uganda.

"Last September the Canadian exploration company Heritage Oil Ltd. announced that it had discovered the country's largest oil deposit in the Albert Basin. Experts estimate that up to 2 billion barrels of crude oil reserves lie beneath Lake Albert."

http://www.glgroup.com/News/Heritag...ead-exploration-efforts-in-Uganda.-34918.html

HIGH PROBABILITY OF COMMERCIAL SUCCESS

Heritage Oil and Tullow Oil have experienced extraordinary success in Block 1 and Block 3A:

"As at January 2009 18 exploration and appraisal wells have been successfully drilled in the basin since 2006. All of the wells have encountered oil bearing reservoirs and the two wells drilled in Block 3A have production tested at over 13,000 bopd.

Since the beginning of 2006, there have been 27 wells drilled in the Albert Basin, with 26 of these wells encountering hydrocarbons."

http://www.heritageoilplc.com/uganda.cfm

"Geochemistry field surveys have confirmed that there is almost certainly an active, mature hydrocarbon source and migration process taking place which substantially reduces remaining exploration risk. This has always been the main area of risk for exploration in the EA5 area so is very encouraging. Moreover, the samples taken have similar characteristics to surface seeps present in other areas of the Albertine Graben.

Some considerable encouragement can be drawn from the successful and continuing exploration programmes of Tullow Oil and Heritage Oil in Blocks 2 and 3 to the south of Tower's Block 5. Exploration drilling in Block 1 which is adjacent to Block 5 has also yielded a first discovery confirming a northward trend of prospectivity."

http://www.towerresources.co.uk/index.php?page=Uganda

DRILL LOCATION

Uganda: Avivi-1 Well Location:

DEVELOPMENT OF UGANDA's OIL INDUSTRY

"Dec. 9 (Bloomberg) -- Eni SpA has the funds to support the development of Uganda’s oil industry, a government minister said today, indicating Italy’s biggest energy company may succeed in its $1.5 billion acquisition of Heritage Oil Plc assets.

Tullow is targeting Ugandan output of between 5,000 and 10,000 barrels a day by 2012, rising to 150,000 barrels a day within five years."

http://www.bloomberg.com/apps/news?pid=20601116&sid=aF0AkdyBDi5E

JB

 

[Georgeb]

this is definitely a good buy at these levels...i feel like this will run in the next few weeks...great potential but lets and wait to hear about the spudding...

 

[BESBS Player]

Great post, PLM.

Explains why I am hanging in with GBP. Drilling news should not be too far away.

 

[Wysiwyg]

What are the chances of Global hitting something decent? In the right area but on the wrong spot? Heads or tails in this game I'm afraid.

Shane's response to the ASX scrutiny was as follows ... and I assume early February is for the approval and not the drilling to commence.

""""""""
a. Tower Resources had advised it has signed a contract for a land rig to drill the second well, Avivi-1;
b. That drilling would begin once full environmental approval and consent to drill has been received, likely to be early February 2010; and
c. The Company has elected to maintain its option to earn a 25% interest in EA5 by funding 25% of the cost of the second well.
""""""""

Looks as if the Ugandan fields are going to Eni.

Well in fact Tullow have exercised their right to block the sale of the Ugandan oil reserves to ENI.

On Monday January 18, 2010, 11:18 am EST

LONDON (AP) -- Britain's Tullow Oil PLC said Monday it will exercise its preemptive right to buy 50 percent of two Ugandan oil fields from Heritage Oil PLC for $1.5 billion, potentially blocking a bid by Italy's Eni SpA.

Tullow and Heritage each own a half share in the two fields in the oil rich Lake Albert Basin and Heritage had agreed in November to sell the stake to Eni for up to $1.5 billion.

But under the terms of Tullow and Heritage's joint exploration venture, Tullow had the right to preempt any offer for Heritage's half by matching the price offered by any other bidder.

The Ugandan government will be the final arbiter after shareholders vote on the proposal at a meeting scheduled for Jan. 25.

Tullow said it has tapped its bankers to match Eni's offer of $1.35 billion cash and a deferred payment of $150 million in either cash or an interest in a producing oil field.

 

[BESBS Player]

Nice to GBP rising back to 18c as we approach a drilling announcement. If news of drilling comes soon, I'm hopeful for a small SP spike as we are dealing with a 100 mmbl potential target here. If news is delayed for another fortnight, we might see a retrace.

Bring on drilling...


Holding GBP

 

[BESBS Player]

News is out on the ASX. Avivi-1 has spudded on Feb.13.
Approx. 2-3 weeks until final results. Given the potential target is 100mmbl, assuming that we have a decent run on the general market, I'd be hoping that GBP might run a little (maybe somewhere between low-mid 20c range) without results. Time shall tell as always.


Disc. Holding GBP at 18c

 

[maxmac]

Things are afoot. Rumours in London of oil. Have the people on the rig been naughty. All will be revealed shortly.. Cash backing 14/15 cents. If they hit what they think they have this will go psycho. Do not believe me DYOR.

Cheers
Maxmac

 

[zweep64]

oil to dust. maybe third time lucky:
Will they temp a third duster or spend there cash somewhere else or look for a new jv as tower may be badluck. still holding haven,t much money invested.

 

[Slipperz]

oil to dust. maybe third time lucky:
Will they temp a third duster or spend there cash somewhere else or look for a new jv as tower may be badluck. still holding haven,t much money invested.

I got burned with the first Ugandan duster and didn't go back for a second try.

Thankfully!

 

[BESBS Player]

Yes Zweep & Slipperz, a disappointing result.

I played my usual BESBS game. Little gained there either on this one. Apart from briefly hitting 20c, it never really left the station.

I'm out square on it - disappointing from what I had hoped.
Unless the market changes considerably, I'd probably not try again here.

 

[stretchie]

OIl flows released and further drilling planned. May be worth a punt as a BESBS play as they will be drilling in a week, however I'm still holding from last time (in at 18.5c). Might not run as far as last couple of times given the last 2 were dusters.

BUT (!) this will be in a different, proven oil producing area. With cash backing at 20c, we should at least see a run to that on this latest drilling venture.

 

[springhill]

MC - $31m
SP - 15.5c
Shares - 199m
Options - Nil
Cash - $24m

Trading Update
Global Petroleum Limited (AIM: GBP, ASX: GBP), the oil and gas exploration company presently focused on emerging plays in southern Africa, announces an update in relation to its projects offshore Namibia and offshore Juan de Nova.

Highlights
● Namibia - completion of delayed interpretation of 2D seismic
o Fulfils Global’s work obligations for the initial phase of the Petroleum Agreement which runs to December 2014
o Decision to seek farm-in partner to progress the exploration programme, commencing with 3D seismic

● Juan de Nova partners complete reprocessing of old 2D seismic and now plans to shoot new 2D campaign

● Both Namibia and Juan de Nova as petroleum provinces are the subject of increasing interest from large international oil and gas companies

● Marketing of working interest in Eagle Ford producing properties still ongoing

● Strong balance sheet as basis for future growth - new opportunities being actively reviewed

The Board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector in order to enhance shareholder value.

This is a seriously cashed up little oil spec, with comparitively few shares on issue next to some tiddlers that have a billion shares and no cash.
June's quarterly will have to be inspected closely when released.
Will update at that time.

 

[Tumbarumba]

Two exploration blocks held offshore Namibia. Hot exploration area currently with billions of barrels of oil trapped. Chariot Oil (LSE- CHAR) to spud with Ocean Rig Poseidon(I love that name) tomorrow in adjacent block . 29% chance of success forecast by "experts", 40 days forecast to reach target zone (which probably means by 20th Oct. SI's and insiders will know what results to expect and CHAR sp will start to move) GBP is tightly held and success by CHAR will multiply its current $7m market cap.