Global Petroleum (AIM:GBP) rose 10% as the Namibian Ministry of Mines and Energy gave approval for its consortium to move to the first renewal period (FRP) 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 km of 3D seismic data carried over from the current Initial Exploration Period (IEP) and to drill a well contingent upon the results of interpretation of the 3D Seismic.
As part of approval, Global and its partners have given a guarantee of a specified minimum exploration expenditure with the precise quantum to be agreed between the consortium and the ministry.
Global added the ministry has waived the usual requirement to relinquish 50% of the licence area at the end of the IEP.
This means that Global and its partners have retained all of the prospectivity of the licence on entry to the FRP - notably both of the primary prospects, Marula and Welwitschia Deep, together, it said, with the leads identified in the eastern part of the licence.
Getting a two-year FRP term (rather than a further one-year extension to the IEP as originally expected) together with the waiver of the relinquishment requirement will also give a major boost to the ongoing farm-out campaign.
Shares rose 0.02p to 0.16p.