Global Petroleum Limited (‘Global’) - the oil and gas exploration company presently focused on emerging plays in Africa, announces thatit has reached agreement with a private company to sell its Eagle Ford Shale (‘EFS’) interests in Texas, USA.
The Company also notes the announcement made by HRT Participaçoes em Petroleo S.A. ("HRT") on 20 May 2013 of well results from their first exploration well, Wingat-1, located in the Walvis Basin, offshore Namibia, and also the positive comments made by other operators in Namibia since the HRT announcement.
Eagle Ford Shale
Earlier this year, Global appointed Dallas-based Moyes & Co to market its EFS interests exclusively with the intention of sourcing potential buyers. Global, through its wholly owned subsidiary GP Exploration Inc., has entered into a purchase and sale agreement (‘PSA’) with Millennial PDP Fund II, LP ("Millennial"), a wholly owned subsidiary of Millennial Energy, LLC, a private US oil and gas company located in McMullen County, Texas, for Millennial to buy Global’s EFS interests for a cash consideration of US$510,000. The sale price is subject to the usual PSA adjustments in the sale and purchase of oil and gas assets on completion. Subject to final due diligence, Global will sell its 7.939% working interest beneath the Olmos formation including the Eagle Ford Shale and the two Eagle Ford wells in which it has a 5.95% beneficial interest in production. The transaction is expected to complete within 2 months. 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.
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