Business
Quarterly Update
Quarterly Update.
About this update from Geo Exploration Limited
[{"type":"text","content":"\n RNS Number : 4601M Global Petroleum Ltd 30 January 2009 \n \n\n30 January 2009\n\nRNS/AIM release\n\nGlobal Petroleum Limited - December 2008 Quarterly Report\n\nUganda EA5 Prospect (Global earning up to a 50% interest)\n\nDuring the quarter, Global announced 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. 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. The Blocks to the south of EA5 have experienced a 100% exploration and appraisal success rate since mid 2006, including the recently announced significant exploration well Giraffe-1 in Block EA1 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 Production Sharing Agreement by funding the Authority for Expenditure ('AFE') cost of drilling Iti-1 (subject to a cap as outlined below), the first well of a two well programme, and a second well, currently expected to be Sambia-1, when the results of Iti-1 have been interpreted. \n\nIt has been agreed that Global's funding of Iti-1 will be capped at US$6.5 million in the event that drill stem testing is not justified and US$7.5 million in the event that the presence of hydrocarbons supports the need for a drill stem test programme, after which Global would fund 25% of continuing well costs.\n\nThe...