Global Petroleum Ltd
23 June 2006
German oil and gas company RWE Dea to farm-in to
Global Petroleum's Malta blocks
The German oil and gas company RWE Dea AG farmed in to Global Petroleum's
offshore exploration blocks in Malta. As a result Global's share of the costs of
seismic work and potentially an exploration well will be carried by RWE Dea.
Announcing the farm-in agreement today, Global Chairman Dr John Armstrong said
that RWE Dea is a welcome party in the joint venture. 'This farm-in is very good
news for Global shareholders,' he said. 'RWE Dea is an international oil and gas
producer and explorer and is part of the RWE Group, one of Europe's largest
companies. It is active in exploration and production as operator and non
operating partner in Germany, the UK, Norway, Denmark, Egypt, Dubai and
Kazakhstan, and holds exploration licences in Algeria, Libya and Poland. In
2005, RWE Dea's oil and gas production was approximately 120,000 boe per day,'
Under the farm-in agreement, RWE Dea earns a 20% interest in the Exploration
Study Agreement for Global's Malta Blocks 4 and 5 of Area 3, with Global
retaining 80%. RWE Dea plans to undertake seismic studies in the 2nd half of
2006 in the blocks at RWE Dea's cost.
RWE Dea and Global have the option, to be exercised during the term of the
Exploration Study Agreement, to enter into a Production Sharing Contract. The
minimum work commitment during the first two year exploration period under this
Production Sharing Contract is the drilling of one well. By carrying Global's
share of the cost of that well on a dry hole basis, RWE Dea will earn an
additional 50% in the venture with Global retaining 30% (including a 3% interest
on behalf of Envoi Limited, the UK marketing agency that assisted Global in the
farm-in process).
Dr Armstrong said that the Malta blocks are located in the southern region of
the Ragusa Trough which contains the Vega oil field in the Italian part of the
basin and which extends south from Sicily in the Mediterranean Sea. The blocks
contain several leads which will be the principal focus of the planned seismic
program with RWE Dea.
The Government of Malta has extended the Exploration Study Agreement for a
further six months until 31 December 2006 allowing the planned seismic work
program which will be operated by RWE Dea to proceed
Dr John Armstrong
Executive Chairman
Telephone: (07) 3211 1122
Fax: (07) 3211 0133
Web: www.globalpetroleum.com.au
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