Global Petroleum Regulatory News (GBP)

31 Oct 2007 17:25

Global Petroleum Ltd31 October 2007 31 October 2007 Global Petroleum Limited - September 2007 Quarterly Report Kenya (Global 20%) The L5 and L7 Joint Venture comprises: Woodside Energy (Kenya) Pty Ltd 30% (and operator)Dana Petroleum (E&P) Ltd 30%Repsol Exploracion S.A. 20%Global Petroleum 20% The costs associated with Global's 20% in L5 and L7 are carried for allactivities through the drilling of the first well in each of these areas. The Joint Venture is in ongoing discussions with regard to the forward programmefor blocks 5 & 7 offshore Kenya. The Joint Venture has until 11 July 2008 todrill the 1st well in L-7 before deciding whether to proceed to the 2ndadditional exploration period and commit to a 2nd well in this licence. Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 80%) Global advises that RWE Dea AG ("RWE"), as operator, have completed a microbial/geochemical survey on sea bottom samples using the Italian research vessel"Universitatis" based in Messina, Sicily. The samples are currently beinganalysed and results are due by the end of the year. RWE, which has farmed into Global's interest in the Exploration Study Agreementcovering Blocks 4 & 5, has the right to earn up to a total 70% interest if theparties enter into a PSC with the Malta Government and RWE commits to thedrilling of a well following the completion of the seismic programme phase. Should a well be drilled, Global's 30% share (including 3% on behalf of a UKmarketing agency that assisted Global in the farm-in process) of the costs ofsuch a well would be fully carried by RWE. Page -2- Falkland Oil and Gas Limited ("FOGL") In its release of interim results on 24 September 2007, FOGL advised it hadcompleted the controlled source electromagnetic survey and that results receivedto date had been encouraging. The results of the survey, as well as the 2Dseismic infill survey in which a total of 9,950 kilometers of new seismic datahad been acquired from Wavefield InSeis AS, would be available later in theyear. Post 30 September 2007, FOGL announced it had entered into a farm-out agreementwith a subsidiary of BHP Billiton over FOGL's 2002 and 2004 licences to theSouth and East of the Falkland Islands. Under the agreement, BHP Billiton willacquire a 40% interest, with an option to increase its interest up to 65%, andwill take over the operatorship of the licences. A minimum of two explorationwells will be drilled in the next 3 years and BHP Billiton pays FOGL US$10million in reimbursement of certain historical costs. The Board continues to review opportunities for other acquisitions, jointventures, or investments in the resources sector, both domestic and overseas,which may enhance shareholder value. Mark SavageChairman For further information please contact: Mark Savage (Chairman)001 505 344 2822 KBC Peel Hunt (Nominated Adviser & Broker)Matt Goode020 7418 8900 This information is provided by RNS The company news service from the London Stock Exchange