Business
Company to Farm in to EA5 Oil
Company to Farm in to EA5 Oil.
About this update from Geo Exploration Limited
[{"type":"text","content":"\n RNS Number : 5588K Global Petroleum Ltd 22 December 2008 \n \n\n\nGLOBAL PETROLEUM TO FARM IN TO EA5 OIL PROSPECT IN UGANDA\nHighlights\n\n\n\nGlobal to farm in to Tower Resources Plc's Uganda acreage in Exploration Area 5 ('EA5') in the north west of the Country\n\n\n\n\nRight to earn 50% interest in EA5 by meeting the costs of two exploration wells, with the initial well capped at US$7.5m\n\n\n\n\nBlocks to the south of EA5 have had consistent success with a 100% exploration and appraisal success rate since mid 2006\n\n\n\n\nPost expenditure on the initial well, Global with still have approximately US$16.25m of cash to pursue other oil and gas opportunities\n\n\n\nIntroduction\n\nGlobal Petroleum Limited ('Global' or 'the Company') is pleased to announce that it has reached agreement ('Farm In Agreement') with Neptune Petroleum (Uganda) Limited ('Neptune'), a wholly-owned subsidiary of Tower Resources plc ('Tower'), an AIM listed oil and gas exploration company, to farm in to an interest in Neptune's Uganda acreage. This agreement is subject to the consent of the Government of Uganda Minister of Energy and Mineral Development and any other regulatory approvals required. Global has the right to earn a 50% interest in Exploration Area 5 ('EA5'), north western Uganda by meeting the cost of two exploration commitment wells. \n\nEA5 is a 6,040 sq km licence area situated at the northern end of the Albertine Graben in northern Uganda (refer www.globalpetroleum.com.au for full release). A regional aeromagnetic survey has identified that EA5 contains one of five identified sedimentary depocentres (or basins), called the Rhino Camp Basin, within the Albertine Graben and a programme of seismic interpretation and geochemical sampling has been completed by Neptune. The Blocks to the south of EA5 have had consistent success with a 100% exploration and appraisal success rate since mid 2006, including the recently announced successful and significant well, Buffalo-1, in EA1 some 80 kms from the Iti-1 location, held by Tullow Oil Plc and Heritage Oil Limited. \n\nUnder the terms of the Farm In Agreement, Global has the right to earn a 50% interest in the EA5 Producti...