Sunday, 2 June 2013

Global Petroleum undervalued in the sector

Global Petroleum (GBP)

Marketcap         £13.2m
Cash                   £14.8m
Net Assets         £21.8m

Shares In Issue 199.45m

The balance sheet displays that Global have more cash and a relatively low cash burn than its current market cap. It has also announced on 28th May 2013 that an agreement had been made to sell the Eagle ford shale interest to a private company. Principally this is a done deal and will furnish Global with a further $510,000

''The EFS sale is in line with the Board's strategy to focus on its current portfolio of projects in Africa and new opportunities which will enhance shareholder value.''

GBP has 30% working interest in the Juan de Nova Est permit which is located to the east of Juan de Nova Island in the Mozambique Channel between Madagascar and Mozambique with Wessex Exploration holding the remaining 70%

Global has also won 2 licences where they hold 85% working Interest offshore in depths  (1300-3000m) and are actively reviewing  joint ventures to develop the assets further.

The prospects sizes are potentially very large and with new 3D seismic acquisition Global anticipates firming up one large structural prospect and possibly a number of stratigraphic leads with a view to drilling a first well.

The data room is active and Global Petroleum have recorded further discussions. We also see the Peter Taylor stable Buying at 7p over two transactions in early to mid May 2013 increasing their significant holding.

Namibia is simply pioneering country which has the potential to unlock a bunch of potential. Further developments from HRT suggest that their initial drilling results show hydrocarbons although not yet at commercial value so they drill again 15km west of wingat-1 at murombe to test a lower Cretaceous basin floor fan (spud in late May 2013).

'' From the well's data, HRT has identified two well-developed source rocks rich in organic carbon. Both are in the oil-generating window.''

Galp Energia hold 14% interest in the 3 well program of which HRT operate 10 blocks of 4 licences.

Its a matter of when and not if the region is pegged on the map, GBP are in a unique position today and with a reduced level of risk, They trade heavily below tangible/cash value. review is here: review here:

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All the best Doc

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(These are but opinions derived from my own experiences and thoughts and do not adopted as statement of fact)

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