Global Petroleum Regulatory News (GBP)

27 Sep 2007 17:05

Global Petroleum Ltd27 September 2007 Global Petroleum Limited Preliminary Results for the year ended 30 June 2007 Review of Operations AND ACTIVITIES Kenya (Global 20%) The Company began drilling its first well during the financial year. The well,Pomboo No. 1 in Licence L-5, Kenya, spudded on 2 December 2006. The Company'sweekly report dated 28 December 2006 reported that the depth reached was 2,944metres (751 metres below the seabed). The costs associated with Global's 20% in respect of this well are fully carriedso no costs were incurred by the Company. The other joint venture parties are: • Woodside Energy 30% (and operator) • Dana Petroleum 30% • Repsol Exploracion 20% On 23 January 2007, Woodside as operator of the Company's Kenya Joint Ventureannounced that Pomboo No. 1 had reached a total depth of 4,887 metres and wouldbe plugged and abandoned. The well encountered "in excess of 200 metres ofmoderate to good quality reservoir sandstones" in the primary target zone from4,685m to the total depth but without oil or gas. It had been expected that the drilling rig would move to Licence L-7 immediatelyfollowing Pomboo to drill Sokwe South No. 1. However at a meeting of the JointVenture on 24 January 2007 it was decided not to drill Sokwe South No. 1 in thisdrilling campaign. The voting equity of Woodside and Repsol as farminees wassufficient to make this decision binding on the Joint Venture. The Company'sannouncement dated 25 January 2007 advised shareholders of this outcome. While there are numerous prospects and leads in our Kenya Licences L-5 and L-7,and Pomboo has established the presence of reservoirs and seals, the well lackedoil and gas shows. The JV decided that the next phase of exploration should bedetermined after a comprehensive technical assessment of the relevance andimplications of the new information obtained from Pomboo. Woodside is currentlyfinalising the Post Pomboo-1 study review of blocks 5 & 7 offshore Kenya. Thiswas a joint study comprised of staff from both Woodside and the KenyanGovernment and its scope includes the integration of the results of the Pomboo-1well drilled during the financial year with all the previous data within these 2blocks and will provide an updated review of their remaining potential.Following finalisation of the study, the forward programme in these two blockswill be determined. The carrying value of the Company's Kenya exploration expenditure has beenwritten-down during the financial year by $8,128,738 to reflect the unsuccessfuldrilling of the first well. Falkland Oil and Gas Limited ("FOGL") (Global shareholding 14.0%) FOGL has a holding of 65,000 km2 of prospective offshore licences to the Eastand South of the Falkland Islands. In its operations update announced on 7 June 2007, FOGL advised the completionof its 2D seismic infill survey in which a total of 9,950 kilometers of newseismic data had been acquired from Wavefield InSeis AS. Processing of this datahad commenced although this would take several months to complete. The second phase of the Controlled Source Electro-Magnetic ("CSEM") survey wascommenced on 4 June 2007. The acquisition phase of this survey was expected totake 6-8 weeks to complete although results from the first phase of the surveyhad been encouraging. The processing of this data is ongoing. The forward plan then for FOGL is to integrate the results of these two surveyswith existing work in order to produce a short list of the best prospects fordrilling which, subject to rig availability and discussions with potentialfarminees, is likely to commence in 2008. Subsequent to year end, FOGL advised that it is currently in advanceddiscussions which may or may not lead to a major resources company farming in tocertain of its assets. At a FOGL share price of £1.60 (as at 25 September 2007), Global's shareholdingis valued at A$47.8 million. The carrying value of Global's shareholdingrecorded in the financial statements at 30 June 2007 was A$24.3 million (basedon the FOGL share price at 30 June 2007 of £0.80). Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 80%) During the financial year, RWE Dea AG ("RWE"), as operator, obtained theservices of seismic company Fugro who recorded 852km of new 2D seismic lines inNovember 2006. This work, together with reprocessing of other seismic surveys inthe Study Area, and the acquisition of new magnetic and gravity data hassatisfied the Malta Government's Study Agreement work commitment. 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. When this work is complete, the Joint Venture (RWE and Global) will make adecision as to whether to enter a Production Sharing Contract with the MaltaGovernment which is likely to involve a well commitment. Global's 30% share(including 3% on behalf of a UK marketing agency that assisted Global in thefarm-in process) of the costs of such a well would be fully carried by RWE. RWE is currently in discussion with the Malta Government to confirm a revisedtime frame for the Exploration Study Agreement dependent upon the timing ofobtaining a specialised vessel and carrying out a microbial/geochemicalinvestigation on sea bottom samples during 2007. At the Company's AGM on 17 November 2006 shareholders approved an extension oftime to 30 June 2008 for the issue to the related party vendors of AstralPetroleum Limited their share of an additional four million fully paid ordinaryshares in the Company if the Company achieves an unconditional commitment by RWEto drill a well in respect of the Malta Exploration Study Agreement. Ireland Licence Option 03/3 (Global 100%) The Company's campaign to introduce a new company to this project has not beensuccessful. Discussions with the Petroleum Affairs Division of the IrelandDepartment of Communications, Marine and Natural Resources indicated that nofurther extensions to the option deadline of 31 December 2006 would be availableand that the only route available to Global was to enter a licence with a wellcommitment. As a farminee was not found to share the risk and the cost of suchwell by the end of calendar year 2006, the Licence Option has now terminated.The carrying value of the Company's exploration expenditure in relation toIreland of $769,339 was written-off during the financial year. Significant Changes in the State of Affairs Other than as outlined in the Review of Operations and Activities above, thefollowing significant changes in the state of affairs of the Consolidated Entityoccurred during the year: • Effective 2 April 2007, Dr John Armstrong resigned from the Board and Mr Ian Middlemas was appointed a Non-Executive Director of the Company. Mr Mark Savage was appointed Chairman of the Company. Significant Post Balance Date EvenTS The consolidated entity's interest in Falkland Oil & Gas Limited is recorded atfair value, based on current market value at year end. The carrying value ofGlobal's shareholding recorded in the financial statements at 30 June 2007 wasA$24.3 million (based on the FOGL share price at 30 June 2007 of £0.80). At aFOGL share price of £1.60 (as at 25 September 2007), Global's shareholding isvalued at A$47.8 million. Other than as outlined above, as at the date of this report there are no mattersor circumstances, which have arisen since 30 June 2007 that have significantlyaffected or may significantly affect: (a) the operations, in financial years subsequent to 30 June 2007 of the Consolidated Entity; (b) the results of those operations, in financials years subsequent to 30 June 2007 of the Consolidated Entity; or (c) the state of affairs, in financial years subsequent to 30 June 2007 of the Consolidated Entity. Environmental Regulation and Performance The Consolidated Entity's operations are subject to various environmental lawsand regulations under the relevant government's legislation. Full compliancewith these laws and regulations is regarded as a minimum standard for alloperations to achieve. Instances of environmental non-compliance by an operation are identified eitherby external compliance audits or inspections by relevant government authorities. There have been no significant known breaches by the Consolidated Entity duringthe financial year. Likely Developments and Expected Results It is the Board's current intention that the Consolidated Entity will focus onmaximising the value of its oil and gas exploration assets in Kenya and Malta,by conducting further exploration activities on these projects and continuing toexamine new opportunities in mineral exploration, particularly in the oil andgas sector. All of these activities are inherently risky and the Board is unable to providecertainty that any or all of these activities will be able to be achieved. Inthe opinion of the Directors, any further disclosure of information regardinglikely developments in the operations of the Consolidated Entity and theexpected results of these operations in subsequent financial years may prejudicethe interests of the Company and accordingly, has not been disclosed. MARK SAVAGE Chairman27 September 2007 Enquiries Global Petroleum LimitedMark Savage, Chairman +1505 344 2822 Bell Pottinger Corporate & FinancialNick Lambert +44 (0) 20 7861 3232 KBC Peel Hunt - Nominated AdviserMatt Goode +44 (0) 20 7418 8990 INCOME STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007 Consolidated Company Note 2007 2006 2007 2006 $ $ $ $ Other Income 64,482 1,157,144 64,066 - Administrationcosts (1,285,363) (1,307,883) (1,238,373) (1,225,262)Exploration andevaluationexpenditurewritten off (9,001,772) (1,166,216) (231,734) (323,241)Impairmentprovision forinter-companyloans - - (381,835) -Impairmentwrite-down ofinvestment incontrolledentities - - (8,215,592) (842,975) -------- -------- -------- --------Results fromoperatingactivities (10,222,653) (1,316,955) (10,003,468) (2,391,478) Net financialincome 339,564 359,648 401,717 338,304 -------- -------- -------- --------Loss beforeincome tax (9,883,089) (957,307) (9,601,751) (2,053,174) Income tax expense - - - - -------- -------- -------- --------Loss after tax (9,883,089) (957,307) (9,601,751) (2,053,174) -------- -------- -------- -------- Loss attributableto members of theparent (9,883,089) (957,307) (9,601,751) (2,053,174) ======== ======== ======== ======== Basic loss pershare fromcontinuingoperations (centsper share) (5.69) (0.56) Diluted loss pershare fromcontinuingoperations (centsper share) (5.69) (0.56) BALANCE SHEETS AS AT 30 JUNE 2007 Note Consolidated Company 2007 2006 2007 2006 $ $ $ $Current assetsCash and cashequivalents 6,324,089 6,991,006 6,318,687 6,981,564Trade and otherreceivables 8,228 258,166 8,228 57,859Other financialassets 600 600 600 600 -------- -------- -------- --------Total currentassets 6,332,917 7,249,772 6,327,515 7,040,023 -------- -------- -------- -------- Non-current assetsReceivables - - 950,606 1,484,817Investments 24,275,749 35,173,534 9,567,288 17,782,879Property, plantand equipment - 42,034 - 40,271Exploration andevaluationexpenditure 9,247,206 17,775,089 388,095 113,687 -------- -------- -------- --------Total non-currentassets 33,522,955 52,990,657 10,905,989 19,421,654 -------- -------- -------- --------TOTAL ASSETS 39,855,872 60,240,429 17,233,504 26,461,677 -------- -------- -------- -------- Current liabilitiesTrade and otherpayables 250,680 380,940 135,872 283,266Employee benefits - 12,397 - 12,397 -------- -------- -------- --------Total currentliabilities 250,680 393,337 135,872 295,663 -------- -------- -------- -------- Non-currentliabilitiesPayables - - 61,260 61,260 -------- -------- -------- --------Total non-currentliabilities - - 61,260 61,260 -------- -------- -------- --------TOTAL LIABILITIES 250,680 393,337 197,132 356,923 -------- -------- -------- --------NET ASSETS 39,605,192 59,847,092 17,036,372 26,104,754 -------- -------- -------- -------- EquityIssued capital 35,590,053 35,056,684 35,590,053 35,056,684Reserves 22,566,537 33,458,717 - -Accumulatedlosses (18,551,398) (8,668,309) (18,553,681) (8,951,930) -------- -------- -------- --------TOTAL EQUITY 39,605,192 59,847,092 17,036,372 26,104,754 -------- -------- -------- -------- CASH FLOW STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007 Note Consolidated Company 2007 2006 2007 2006 $ $ $ $Cash flows fromoperatingactivitiesCash paid tosuppliers andemployees (1,212,795) (1,163,137) (1,333,488) (1,114,875)Interest received 401,717 384,973 401,717 384,603Management feesreceived 50,000 192,226 50,000 - -------- -------- -------- --------Net cash fromoperatingactivities (761,078) (585,938) (881,771) (730,272) -------- -------- -------- -------- Cash flows frominvestingactivitiesAcquisition ofproperty, plant andequipment (18,459) (4,836) (18,459) (4,836)Explorationexpenditure (473,889) (1,025,725) (506,141) (315,870)Proceeds fromdisposal ofproperty, plant andequipment 53,140 - 52,250 -Proceeds fromdisposal ofinvestments - 1,827,416 - -Repayment of loansfrom controlledentities - - 180,022 2,037,962Advances tocontrolled entities - - (22,147) (761,279) -------- -------- -------- --------Net cash frominvestingactivities (439,208) 796,855 (314,475) 955,977 -------- -------- -------- -------- Cash flows fromfinancingactivitiesProceeds from theissue of sharecapital 537,500 625,000 537,500 625,000Share issueexpenses (4,131) (4,451) (4,131) (4,451) -------- -------- -------- --------Net cash fromfinancingactivities 533,369 620,549 533,369 620,549 -------- -------- -------- -------- Netincrease/(decrease)in cash and cashequivalents (666,917) 831,466 (662,877) 846,254Cash and cashequivalents at 1July 6,991,006 6,159,540 6,981,564 6,135,310 -------- -------- -------- --------Cash and cashequivalents at 30June 6,324,089 6,991,006 6,318,687 6,981,564 -------- -------- -------- -------- STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007 Consolidated Note Foreign currency Share Fair value translation Accumulated Total capital reserve reserve losses equityBalance at 1July 2006 35,056,684 33,411,563 47,154 (8,668,309) 59,847,092Foreignexchangetranslationdifferences - - 5,605 - 5,605Change in fairvalue -available-for-saleinvestments - (10,897,785) - - (10,897,785) -------- -------- -------- -------- --------Totalnon-profititemsrecogniseddirectly inequity - (10,897,785) 5,605 - (10,892,180)Loss for theperiod - - - (9,883,089) (9,883,089) -------- -------- -------- -------- --------Totalrecognisedincome andexpense forthe period - (10,897,785) 5,605 (9,883,089) (20,775,269)Exercise ofoptions 537,500 - - - 537,500Share issueexpenses (4,131) - - - (4,131) -------- -------- -------- -------- --------Balance at 30June 2007 35,590,053 22,513,778 52,759 (18,551,398) 39,605,192 -------- -------- -------- -------- -------- Consolidated Balance at 1July 2005 34,436,135 - 48,455 (7,711,002) 26,773,588Effect of changein accountingpolicy - 39,188,153 - - 39,188,153 -------- -------- -------- -------- --------Balance at 1July 2005 -restated 34,436,135 39,188,153 48,455 (7,711,002) 65,961,741Change in fairvalue -available-for-sale investments - (423,652) - - (423,652)Fair value -available-for-sale investmentstransferred toprofit/loss ondisposal - (5,352,938) - - (5,352,938)Foreign exchangetranslationdifferences - - (1,301) - (1,301) -------- -------- -------- -------- --------Total non-profititems recogniseddirectly inequity 34,436,135 33,411,563 47,154 (7,711,002) 60,183,850Loss for theperiod - - - (957,307) (957,307) -------- -------- -------- -------- --------Total recognisedincome andexpense for theperiod - 33,411,563 47,154 (8,668,309) 59,226,543Exercise ofoptions 625,000 - - - 625,000Share issueexpenses (4,451) - - - (4,451) -------- -------- -------- -------- --------Balance at 30June 2006 35,056,684 33,411,563 47,154 (8,668,309) 59,847,092 -------- -------- -------- -------- -------- Amounts are stated net of tax STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007 Company Note Share capital Accumulated Total equity losses $ $ $ Balance at 1 July2006 35,056,684 (8,951,930) 26,104,754Loss for the period - (9,601,751) (9,601,757) ---------- ---------- ----------Total recognisedincome and expensefor the period - (9,601,751) (9,601,757)Exercise of options 537,500 - 537,500Share issueexpenses (4,131) - (4,131) ---------- ---------- ----------Balance at 30 June2007 35,590,053 (18,553,681) 17,036,372 ---------- ---------- ---------- CompanyBalance at 1 July2005 34,436,135 (6,898,756) 27,537,379Loss for the period - (2,053,174) (2,053,174) ---------- ---------- ----------Total recognisedincome and expensefor the period 34,436,135 (8,951,930) 25,484,205Exercise of options 625,000 - 625,000Share issueexpenses (4,451) - (4,451) ---------- ---------- ----------Balance at 30 June2006 35,056,684 (8,951,930) 26,104,754 ---------- ---------- ---------- Amounts are stated net of tax NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Consolidated Company 2007 2006 2007 2006 $ $ $ $1. PROFIT/(LOSS) FROM OPERATIONS (a) Other Income Gain on disposal ofavailable-for-sale investments - 1,093,589 - -Gain on disposal of plant and equipment 14,482 - 14,066 - Rendering of services 50,000 63,555 50,000 - --------- -------- --------- -------- 64,482 1,157,144 64,066 - --------- -------- --------- -------- (b) Profit/(loss) before tax Profit/(loss) before income tax has been arrived atafter charging the following expensesattributable to continuing operations: Salaries and employee benefitsexpense 543,518 466,797 543,518 446,222Consulting and professionalfees 190,853 483,079 154,708 504,098Shareholder costs 300,796 143,311 299,796 88,615Occupancy costs 47,622 32,107 47,622 22,571Depreciation expense 13,665 20,603 12,376 12,697Administrative and otherexpenses 188,909 161,986 180,353 151,059 -------- -------- -------- -------- 1,285,363 1,307,883 1,238,373 1,225,262 -------- -------- -------- -------- (c) Financial income/(expenses) Interest income 401,717 339,178 401,717 338,808Net foreign exchange gain/(loss) (62,153) 20,470 - (504) --------- -------- --------- -------- 339,564 359,648 401,717 338,304 --------- -------- --------- -------- 2. INCOME TAX No income tax is payable by the Company as it has incurred losses for income taxpurposes for the year. (a) Recognised in the income statement Current tax expense/(benefit)Current year (371,882) (458,459) (339,264) (452,316) -------- -------- -------- -------- (371,882) (458,459) (339,264) (452,316) -------- -------- -------- -------- Deferred tax expenseTax losses not brought toaccount 371,882 458,459 339,264 452,316 -------- -------- -------- -------- Total income tax expense in the income statement - - - - -------- -------- -------- -------- Consolidated Company 2007 2006 2007 2006 $ $ $ $ (b) Reconciliation between loss before tax and tax expense Loss before tax expense (9,883,089) (957,307) (9,601,751) (2,053,174) -------- -------- -------- --------Prima facie tax benefit at30% (2006: 30%) (2,964,927) (287,192) (2,880,525) (615,952) Increase/(decrease) inincome tax expense due to:Exploration and evaluationexpenditure written off 2,700,531 349,865 69,520 96,972Write-down of investment - - 2,464,677 252,893Provision forinter-company loans - - 114,550 -Net loss/(gain) ondisposal of investments - (328,077) - -Other items (107,486) (193,055) (107,486) (186,229)Tax losses not brought toaccount 371,882 458,459 339,264 452,316 -------- -------- -------- --------Income tax expense on pre-tax net loss - - - - -------- -------- -------- -------- (c) Unrecognised deferred tax assets The deferred tax assets not brought to account at 30% relating to income taxlosses and temporary differences, the benefits of which will only be realised ifthe conditions for deductibility as set out in Note 1(f) occur, are as follows: Temporary differences:Capitalised overheads (619,196) (560,563) (619,196) (560,563)Share issue costs 71,007 117,792 71,007 117,792Accrued expenses 14,100 9,428 14,100 9,728Provisions - 3,719 - 3,719Other - 2,721 - 2,721 -------- -------- -------- -------- (534,089) (426,903) (534,089) (426,603)Tax losses 534,089 426,903 534,089 426,603 -------- -------- -------- -------- - - - - -------- -------- -------- -------- 3. EXPLORATION AND EVALUATION EXPENDITURE CostCarrying amount atbeginning of year 17,775,089 18,068,045 113,687 113,687Expenditure incurred 529,858 873,260 506,142 323,241Exchange differences (55,969) - - -Expenditure written off (9,001,772) (1,166,216) (231,734) (323,241) -------- --------- --------- -------Carrying amount at end ofyear 9,247,206 17,775,089 388,095 113,687 -------- --------- --------- ------- The recoverability of the carrying amounts of exploration and evaluation assetsis dependent on the successful development and commercial exploitation or saleof the respective area of interest. 4. DIVIDENDS No dividends have been declared, provided for or paid in respect of the yearsended 30 June 2007 or 2006. With respect to the payment of dividends by GlobalPetroleum in subsequent reporting periods (if any), no franking credits arecurrently available, or are likely to become available in the next 12 months. 5. SEGMENT INFORMATION Segment information is presented in respect of the consolidated entity'sgeographical segments. The primary format, geographical segments, is based onthe consolidated entity's management and internal reporting structure. Inter-segment pricing is determined on an arm's length basis. Segment results,assets and liabilities include items directly attributable to a segment as wellas those that can be allocated on a reasonable basis. Segment capitalexpenditure is the total cost incurred during the period to acquire segmentassets that are expected to be used for more than one period. Geographical segments The consolidated entity's geographical segments are as follows: Falkland Australia Europe Africa Islands Iraq Other Eliminations Consolidated2007 $ $ $ $ $ $ $ $SegmentincomeExternal income 404,046 - - - - - - 404,046 ------- ------- ------- -------- ------ ------ -------- --------Total revenue 404,046 --------ResultSegment result (1,011,879) (757,620) (8,112,731) (359) - - (500) (9,883,089) ------- ------- ------- -------- ------ ------ -------- --------Income tax expense - -------- Loss for theperiod (9,883,089) -------- Depreciation 21,836 - - - - - - 21,836Explorationandevaluationexpenditure written off - 769,339 8,128,738 - 19,629 84,066 - 9,001,772 ------- ------- ------- -------- ------ ------ -------- --------AssetsSegment assets 7,660,267 1,096,515 8,155,784 24,275,749 - - (1,332,443) 39,855,872 ------- ------- ------- -------- ------ ------ -------- --------LiabilitiesSegmentliabilities 141,872 925,780 189,272 326,199 - - (1,332,443) 250,680 ------- ------- ------- -------- ------ ------ -------- -------- Acquisitionsofnon-currentassets,includingcapitalisedexplorationand evaluation expenditure 18,459 222,883 203,266 - 19,629 84,080 - 548,317 ------- ------- ------- -------- ------ ------ -------- -------- Australia Europe Africa Falkland Iraq Other Eliminations Consolidated Islands2006 $ $ $ $ $ $ $ $SegmentincomeExternal income 1,453,237 - - 63,555 - - - 1,516,792 ------- ------- ------- -------- ------ ------ -------- --------Total revenue 1,516,792 --------ResultSegment result (632,626) (300,777) (1,068,502) 1,099,458 (54,860) - - (957,307) ------- ------- ------- -------- ------ ------ -------- --------Income tax expense - -------Loss for theperiod (957,307) -------- Depreciation 36,699 - - - - - - 36,699Othernon-cashexpenses/ (credit) 5,302 - - - - - - 5,302Explorationandevaluationexpenditure written off 23,018 19,836 1,068,502 - 54,860 - - 1,166,216 ------- ------- ------- -------- ------ ------ -------- --------AssetsSegment assets 8,568,387 1,890,388 16,092,081 35,174,391 - - (1,484,818) 60,240,429 ------- ------- ------- -------- ------ ------ -------- --------LiabilitiesSegmentliabilities 301,663 1,037,248 217,655 321,589 - - (1,484,818) 393,337 ------- ------- ------- -------- ------ ------ -------- -------- Acquisitionsofnon-currentassets,includingcapitalisedexplorationand evaluation expenditure 27,840 465,422 329,974 - 54,860 - - 878,096 ------- ------- ------- -------- ------ ------ -------- -------- Business segments The consolidated entity operates within one business segment, being thepetroleum and mineral exploration industry. Accordingly, the consolidatedentity's total revenue and loss for the period relate to that business segment. 6. EARNINGS PER SHARE Consolidated Consolidated 2007 2006 Cents per Share Cents per Share Basic profit/(loss) per share: (5.69) (0.56) ========== =========== Diluted profit/(loss) per share: (5.69) (0.56) ========== =========== The following reflects the income and share data used in the calculations ofbasic and diluted earnings per share: Consolidated Consolidated 2007 2006 $ $Net profit/(loss) used in calculating basic anddiluted earnings per share (9,883,089) (957,307) ========== ========== Number of Number of Shares Shares 2007 2006Weighted average number of ordinary shares used incalculating basic earnings per share 173,679,034 170,468,760Effect of dilutive securities - - ---------- ---------Adjusted weighted average number of ordinaryshares and potential ordinary shares used incalculating basic and diluted earnings per share 173,679,034 170,468,760 ========== ========= Non-dilutive securities As at balance date, 10,200,000 Unlisted Options (which represent 10,200,000potential ordinary shares) were not dilutive as they would decrease the loss pershare. Conversions, calls, subscriptions or issues after 30 June 2007 Since 30 June 2007, no shares have been issued and no incentive options havebeen granted. No shares have been issued as a result of the exercise of optionssince 30 June 2007. 7. SUBSEQUENT EVENTS The consolidated entity's interest in Falkland Oil & Gas Limited is recorded atfair value, based on current market value at year end. The carrying value ofGlobal's shareholding recorded in the financial statements at 30 June 2007 wasA$24.3 million (based on the FOGL share price at 30 June 2007 of £0.80). At aFOGL share price of £1.60 (as at 25 September 2007), Global's shareholding isvalued at A$47.8 million. Other than as outlined above, as at the date of this report there are no mattersor circumstances which have arisen since 30 June 2007 that have significantlyaffected or may significantly affect: (a) the operations, in financial years subsequent to 30 June 2007, of the Company; (b) the results of those operations, in financials years subsequent to 30 June 2007, of the Company; or (c) the state of affairs, in financial years subsequent to 30 June 2007, of the Company. This information is provided by RNS The company news service from the London Stock Exchange