Global Petroleum (LON:GBP) says it has been sufficiently encouraged in the prospectivity within the Juan de Nova Est permit that it has applied to extend the permit for five more years.
The exploration acreage, located in the Mozambique Channel, is in a high profile neighbourhood as far as the industry is concerned given the huge gas discoveries in the deep waters off Mozambique and Tanzania.
Global Petroleum says that a petroleum systems review, including reprocessing of historic 2D seismic data, appears to show a thick potentially prospective stratigraphic section in deep water in both the northern and southern triangles of the block which are encouraging enough to justify renewal.
An application has now been made for a smaller area of 4,500 square kilometres, half of the previous permit.
The company expects it will take several months for the renewal process to be completed.
Global Petroleum made the application will full legal interest in the project although a prior joint venture agreement entitled Wessex Exploration to a 70% beneficial interest in the asset.
There was insufficient time for Wessex to convert the beneficial interest into legal title and consequently it was unable to legally participate in the renewal process.
Alongside the renewal application a new joint venture agreement has been signed between Global Petroleum and Wessex that will see the partners have joint 50% interests in the assets should the renewal be successful.
"The results of the seismic interpretation undertaken earlier this year were sufficiently encouraging for us to make an application to renew the permit with an appropriately staged work programme,” said chief executive Peter Hill.
“The northern part of the permit in particular has a good address, given its proximity to the licensed areas offshore Madagascar. We have therefore agreed with Wessex that if the renewal is granted by the French authorities, Global would assume the operatorship and increase our equity."