GLV - Multiple Stacked Targets At The Bonito Prospect

Our 2023 Energy Pick of the Year Global Oil & Gas (ASX: GLV) just put out an update on its seismic reprocessing program.

GLV holds an 80% interest in a giant exploration block in offshore Peru.

The project is surrounded by existing discoveries and sits in a basin that has produced ~1.6 billion barrels of oil in the past.

GLV is now operating the block under a Technical Evaluation Agreement (TEA) which will see it rank priority drill targets over a 24 month period with a view to drill after that period.

For the first 12 months GLV’s focus is on reprocessing ~1,000km^2 of seismic data across three different target areas.

Today GLV put out an update from one of those three areas - its Bonito Prospect.

The Bonito Prospect has been worked up since the early 2000’s, but until now most of the previous work across the prospect was targeting the Upper Zorritos Formation.

Today, GLV confirmed the potential for exploration across both the deeper Zorritos Formation and the lower Zorritos formation where previous discoveries have been made and oil/gas has been produced from.

GLV is currently reprocessing seismic across ~250km^2 of the Bonito Prospect and the next step for the company will be to put out a maiden prospective resource estimate across the prospect.

What could the next major catalysts be for GLV?

News from Target #1 (Bonito prospect) 🔄

Here we want to see GLV put out a prospective/contingent resource number.

News from Target #2 (Raya prospect) 🔄

Again, we want to see GLV put out a prospective/contingent resource number.

GLV’s Raya prospect sits right in the middle of two existing discoveries - Barracuda and Delfin which have both confirmed oil systems.

That could mean GLV is able to put out an announcement similar to the one from its third prospect a few weeks back (Piedra Redonda) where it announced a contingent resource before ever drilling the prospect.

See our note on the news from Piedra Redonda here: GLV announces details of historical gas discovery - and it has already flowed…

News from Target #3 (Piedra Redonda Prospect) 🔄

Here GLV already has a 404 billion cubic feet of gas (Bcf) contingent resource and a 2.2 trillion cubic feet (TCF) prospective resource on a 100% basis.

At the moment GLV’s resource numbers come from just a small section of its overall prospect area.

GLV is still going to reprocess ~350km^2 of seismic data across the broader prospect area which could mean the numbers increase further.

Any increase could be a major catalyst for GLV’s share price.