Global Petroleum Regulatory News (GBP)

14 March 2013

Global Petroleum Limited

("Global" or the "Company")

Unaudited interim results for the six months to 31 December 2012

Global Petroleum announces its unaudited interim financial results for the six months to 31 December 2012. The complete Half Year Financial Report is available from the ASX website at www.asx.com.

Financial Highlights

·; Consolidated Group profit before tax of $224,976 (2011: $222,695)

·; Cash of $22,327,641 (2011: $22,435,751)

Operational and Corporate Highlights

·; Dr Rob Arnott appointed non-executive Chairman, replacing Mr Mark Savage

·; After being appointed as Exploration Manager in October 2012, Mr Chris Lewis conducted a strategic review of all 2D seismic data purchased or acquired by the company on its two Namibian blocks, the results of which were published post period

·; Also announced post period, a data room was opened in London in order to provide selected potential farm-in partners access to seismic data, CPRs and all available block data relating to the Namibian acreage

·; The partners in the Juan De Nova Permit commenced a regional review of petroleum systems in the area collating all interpreted 2D data with the aim of identifying leads in both deep and shallow water areas. Wessex has indicated that farm out discussions have been put on hold until this review has been completed

·; Total production from the two Eagle Ford horizontal wells (Tyler Ranch EFS #1H and #2H) in which Global has an interest was 35,160 boe (29,026 bo and 36,802 mcfg) or 382 boepd. Global's beneficial interest (NRI) in the production was 5.95% or some 2,814 boe for the reporting period or 23 boepd. 

For further information please visit www.globalpetroleum.com.au or contact:

Interim Financial Report for the Half Year Ended 31 December 2012

The directors of Global Petroleum Limited ("the Company" or "Global") present their report together with the consolidated interim financial report for the 6 month period ending 31 December 2012 and the review report thereon.

DIRECTORS

The directors of the Company at any time during or since the end of the half year are:

Mr Robert Arnott (appointed 4 October 2012) - Chairman

Mr Mark Savage (retired 4 October 2012)

Mr Peter Blakey

Mr Peter Taylor

Mr Peter Hill

Mr Peter Dighton

Mr Damien Cronin

REVIEW OF OPERATIONS

Operating Results

During the six months ended 31 December 2012, the consolidated group recorded a profit after tax of $224,976 (six months ended 31 December 2011: profit of $222,695). This is a slight increase compared to the previous corresponding period and is primarily related to an increase in activity offset by a write back of the tax provision.

Board Changes

Mr Rob Arnott, a highly respected energy industry executive, was appointed as Chairman to the board on 4 October 2012. As a result of the appointment of a successor, Mr Mark Savage stepped down as Chairman and Director on 4 October 2012.

Principal Activities

Namibian Project

Jupiter Petroleum Namibia Limited (a 100% subsidiary of Global) has an 85% interest in and is operator of Namibia Licence 0029 ("Permit") which comprises two contiguous offshore blocks, namely 1910B and 2010A. The Permit was issued in December 2010 and has an initial exploration term of four years for which all work commitment obligations have been fulfilled. There are two extensions to the license of two years each which will require the drilling of one exploration well in each term.

The focus of work during 2012 was the interpretation of the 2,000 line kms of new high resolution 2D seismic data, which was acquired and processed by Global in 2011. Integrating this data with previous work confirmed the presence of three large structural traps thought to contain Cretaceous carbonate reservoirs overlain and sealed by deep marine shales. In addition the new interpretation identified a large depo-centre in the Permit with the potential to act as a source kitchen for the generation and migration of oil, and two fairways with significant potential for the development of Late Cretaceous and Early Tertiary sandstone reservoirs in stratigraphic and structural traps.

A farm out process was commenced during 2012 with the sending of marketing material to a select group of companies. The intention is to reach an agreement with an appropriate partner to fund future operations on the Permit commencing with a 3D survey, in exchange for an equity interest.

In 2013, post the reporting period, the company is actively moving forward with the farm out and a data room has been opened for invited companies to review the Permit. In addition to the farm out, the focus of Global's efforts will be to map the additional play fairways in increased detail and thereby develop an expanded portfolio of prospects and leads, perform further geochemical work to better understand the timing of oil generation and migration in the area.

Juan de Nova Project

Jupiter Petroleum Limited ("Jupiter") (a 100% subsidiary of Global) has a 30% interest in the Juan de Nova Est Permit (the "Permit") which was issued by the French Government in December 2008. The Permit covers approximately 9,010 square kilometres and is situated to the east of the small island of Juan de Nova in the Mozambique Channel, immediately to the west of Madagascar. Wessex Exploration PLC (AIM: WSX) holds a 70% beneficial interest and is the operator subject to the consent of the French authorities.

During 2012, the partnership completed the reprocessing and interpretation of the purchased 1,000 kms of TGS-Nopec (2001) shallow water seismic data. The partners in the Permit have recently decided to combine the interpretation of this data set into a regional review of petroleum systems in the area, with the aim of identifying leads in both deep and shallow water areas that would benefit from the acquisition of new 2-D seismic data. Wessex has indicated that its farm out discussions have been put on hold until this review has been completed. Global has previously indicated that the company wishes to maintain its 30% interest in the Permit.

Eagle Ford Shale

Total production from the two Eagle Ford horizontal wells (Tyler Ranch EFS#1H and #2H) was 35,160 boe (29,026 bo and 36,802 mcfg) for the reporting period or 382 boepd.

Global's beneficial interest (NRI) in the production was 5.95% or some 2,814 boe for the reporting period or 23 boepd.

Global has a 7.939% working interest in approximately 1,368 acres beneath the Olmos formation including the Eagle Ford Shale ("EFS").

The marketing by Houston-based Albrecht & Associates of Global's EFS interests in Texas continued throughout the period but did not lead to a satisfactory offer. The board therefore has taken the decision, post the reporting period, to appoint Dallas-based Moyes & Co to market its EFS interests exclusively.

Business Development

The board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector, which may enhance shareholder value and the Company will continue to evaluate new opportunities as they are presented.

Management Appointment

Mr Chris Lewis, an experienced exploration professional with particular experience in offshore African acreage was appointed Exploration Manager on 4 October 2012.

SUBSEQUENT EVENTS

As indicated above, a data room has been established in London and prospective farminees are, post the reporting period, being invited to review the complete data sets regarding the Namibian Project.

As also indicated above, the Company has appointed Moyes & Co post the reporting period to exclusively market the Company's interests in the Eagle Ford Shale.

Glossary:

bbl: barrel

bo: barrels of oil

boe: barrels of oil equivalent (including gas converted to oil equiv barrels on basis of 6 mcf to 1 barrel of oil equivalent)

boepd: barrels of oil equivalent per day

bopd: barrels of oil per day

mcf: thousand cubic feet

mcfg: thousand cubic feet of gas

mcfgpd: thousand cubic feet of gas per day

mmbtu: million British thermal units

NRI: Net Revenue Interest

LEAD AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

The lead auditor's independence declaration is set out on below and forms part of the Directors' Report for the half year ended 31 December 2012.

Signed in accordance with a resolution of directors.

DAMIEN CRONIN

Director and Company Secretary

14 March 2013

CONDENSED CONSOLIDATED INTERIM

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

The Condensed Consolidated Interim Statement of Comprehensive Income is to be read in conjunction with the attached notes to the Condensed Consolidated Interim Financial Statements.

CONDENSED CONSOLIDATED INTERIM

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2012

CONDENSED CONSOLIDATED INTERIM

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

*Restated to present discontinued operations - refer note 5

The Condensed Consolidated Interim Statement of Cash Flows is to be read in conjunction withthe attached notes to the Condensed Consolidated Interim Financial Statements.

NOTES TO THE CONDENSED CONSOLIDATED

INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

Amounts are stated net of tax

The Condensed Consolidated Interim Statement of Changes in Equity is to be read in conjunction withthe attached notes to the Condensed Consolidated Interim Financial Statements.

Notes to the condensed consolidated interim financial statements

For the six months ended 31 December 2012

1. REPORTING ENTITY

Global Petroleum Limited is a company domiciled in Australia. Global is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange and the London Stock Exchange (AIM). The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 December 2012 comprises the Company and its Subsidiaries (together referred to as the "Group"). The Group primarily is involved in oil and gas exploration and development.

The consolidated annual financial statements of the group as at and for the year ended 30 June 2012 are available upon request from the Company's registered office at Level 5, Toowong Tower, 9 Sherwood RoadBrisbane, QLD 4066, Australia or at www.globalpetroleum.com.au.

2. BASIS OF PREPARATION

Statement of compliance

The condensed consolidation interim financial statements are general purpose financial statements prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001, and with IAS 34 Interim Financial Reporting.

The interim financial report has been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars.

The accounting policies and methods of computation adopted by the Group in the preparation of the half year financial report are consistent with those adopted and disclosed in the consolidated financial report as at and for the year ended 30 June 2012, other than as detailed below.

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2012. The adoption of these new and revised standards has not resulted in any significant changes to the Group's accounting policies or to the amounts reported for the current or prior periods.

These condensed consolidated interim financial statements were approved by the Board of Directors on 4 March 2013.

Judgement and Estimates

The preparation of the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this consolidated interim financial report, the significant judgements made by management in applying the consolidated entity's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report as at and for the year ended 30 June 2012.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied to the Group in the condensed consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2012.

4. SEGMENT INFORMATION

The Group operates in the oil and gas exploration, development and production segments as described below:

Continuing operations

Africa - The group currently holds prospective oil and gas exploration interests in offshore Namibia and offshore Juan de Nova, a French dependency, in the Mozambique Channel.

Discontinued operations

America - On 27 February 2012, the Group sold its interest in the Olmos production wells and related leases - part of the Leighton Project. The group continues to hold its interest in the Eagle Ford oil and gas production operations and related leases however the group is actively seeking buyers for this interest and as such has classified the asset as an asset held for sale.

5. DISCONTINUED OPERATIONS

Oil and gas production wells and licences

On 28 February 2012, the Group sold its interest in the Olmos production wells and related lease which formed part of the Leighton Project. The group also announced on 27 February 2012 that it has appointed brokers to seek buyers for its interest in the Eagle Ford production wells and related leases which is also part of the Leighton Project. This asset has been classified as an asset held for sale as at 31 December 2012.

The segment was not a discontinued operation or classified as held for sale at 31 December 2011 and the comparative Comprehensive Statement of Comprehensive Income has been restated to show the discontinued operation separately from the continuing operations.

The profit (loss) for the period from the discontinued operations of $(29,705) (2011:$747,579) is entirely attributable to the owners of the company.

Earnings per share of discontinued operations

Cash flows from (used in) discontinued operations

6. EQUITY SECURITIES LISTED

Options issued

On 4 October 2012, the Company granted a total of 1,000,000 incentive options to a director. A further 2,000,000 incentive options were issued to an employee of the Company. Total incentive options (3,000,000) had a fair value of $111,120. This fair value has been recognized as an expense over the vesting period of the options in accordance with accounting standards.

Option grant details:

a. 625,000 incentive options exercisable at A$0.25 each on or before 1 April 2015, vesting on 1 April 2013;

b. 725,000 incentive options exercisable at A$0.30 each on or before 1 October 2015, vesting on 1 October 2013;

c. 725,000 incentive options exercisable at A$0.35 each on or before 1 April 2016, vesting on 1 April 2014; and

d. 425,000 incentive options exercisable at A$0.45 each on or before 1 October 2016, vesting on 1 October 2014.

Supplementary option grant subject to vesting conditions:

i. 125,000 incentive options exercisable at A$0.25 each on or before 1 April 2015, vesting on 1 April 2013;

ii. 145,000 incentive options exercisable at A$0.30 each on or before 1 October 2015, vesting on 1 October 2013;

iii. 145,000 incentive options exercisable at A$0.35 each on or before 1 April 2016, vesting on 1 April 2014; and

iv. 85,000 incentive options exercisable at A$0.45 each on or before 1 October 2016, vesting on 1 October 2014.

Refer to note 10 for full details on options.

7. OIL AND GAS ASSETS - CONTINUING OPERATIONS

8. ASSETS HELD FOR SALE

The Eagle Ford oil and gas production well and associated licenses, part of the Leighton Project, are presented as an asset held for sale following the Group's decision on 27th February 2012 to dispose of its remaining interests in the Leighton Project. The company continues in its efforts to sell this asset.

The liability held for sale relates to the "plug and abandon" restoration provision for the Eagle Ford wells. Once the sale has occurred this provision will no longer be required.

9. EXPLORATION ASSETS

10. SHARE BASED PAYMENTS

The following equity-settled share-based payments were issued in the 6 months to 31 December 2012

*Conditional upon the execution of a farm-out agreement for farm-down of the Company's interest in Namibia before 31 March 2013. On all other options, once the vesting date has been reached there are no excise conditions attached.

The fair value of the options was determined using the Black Scholes option pricing model or the Binomial options pricing model. The total expense arising from the share based payments for the 6 month period to 31 December 2012 was $130,094 (Dec 2011: $119,659). The expected volatility of the options was calculated using the Hoadley's volatility calculator for a 3 year period, using data extracted from Bloomberg. For the purpose of the valuations above the future estimated volatility level of 75% was used in the pricing model.

Measurement of fair value

The fair value of the options granted through share based incentive scheme was measured based on the Black Scholes model or on a binomial option pricing model.

Reconciliation of outstanding share options

The number and weighted average exercise prices of the share options under the share option scheme are as follows:

11. RELATED PARTIES

Ultimate parent

Global Petroleum Limited is the ultimate parent entity of the Group.

Key management personnel

The key management personnel of the Group during or since the end of the period were as follows:

Directors

Mr Mark Savage Non-Executive Chairman (resigned 4 October 2012)

Mr Robert Arnott Non-Executive Chairman (appointed 4 October 2012)

Mr Peter Hill Managing Director and Chief Executive Officer

Mr Peter Blakey Non-Executive Director

Mr Peter Taylor Non-Executive Director

Mr Peter Dighton Non-Executive Director

Mr Damien Cronin Non-Executive Director and Company Secretary

Key management personnel compensation

Individual director and executive compensation disclosure

Information regarding individual director and executive compensation and some equity instruments disclosed as required by Corporations Regulation 2 M.3.03 is provided in Notes 6 and 10.

Apart from the details disclosed in this note, no director has entered into a material contract with the Group since the end of the previous financial year and there were no material contracts involving directors' interests existing at period-end.

Options and rights over equity instruments

Other than disclosed in Note 10, no options were held by key management personnel or related parties during the period ended 31 December 2012. Other than disclosed in Note 10, no options were held by key management personnel or related parties during the period ended 31 December 2011.

Other key management personnel transactions

A number of directors, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities. A number of these entities transacted with the Company or its controlled entities in the reporting period. The terms and conditions of these transactions were no more favourable than those available, or which might be available, or which might reasonably be expected to be available, on similar transactions to unrelated entities on an arm's length basis.

During the period the company paid $163,623 ($2011: $173,710) to TM Services Limited, a company controlled by Mr P Taylor and Mr P Blakey, for office usage, administrative and technical assistance in London. $16,800 (2011: nil) to Law Strategies, a company controlled by Mr P Dighton, for the provision of a fully serviced Australian office. $7,722 (2011: $9,135) to Tower Resources, a company controlled by Mr P Taylor and Mr P Blakey, for administrative assistance in London. The company also paid Law Strategies $7,650 (2011: $33,593) for the provision of legal services and $28,000 (2011: $12,500 ) to Law Projects, a company controlled by Mr D Cronin, for company secretarial and other services. Consultancy fees were also paid to MR P Taylor and Mr P Blakey for the amount of $15,000 each (2011: $15,000 each).

On 20 December 2012, TM Services made a short term, interest fee loan to Global for a total amount of $61,601 (GBP40,000) to cover a GB Pound shortfall, this amount was repaid in full on 4 January 2013.

12. PROVISIONS

Refer to Note 15 re subsequent events.

13. CONTINGENCIES

There have been no changes in contingent liabilities since 30 June 2012.

14. COMMITMENTS

There have been no changes in commitments since 30 June 2012.

15. SUBSEQUENT EVENTS

Subsequent to the period end, Global has established that the provision held for tax payable ($1,441,255) as a result of the Kenyan settlement proceeds received by Star Petroleum International (Kenya) limited, a wholly owned subsidiary of Global, is not assessable in Australia, Kenya or the United Kingdom. As such the provision has been reversed in the accounts - resulting in an increase in profit of $1,441,255.

In the opinion of the directors of Global Petroleum Limited ("the Company"):

1. the condensed interim consolidated financial statements and notes, set out in earlier pages

are in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the Group's financial position as at 31 December 2012 and of its performance for the 6 month period ended on that date; and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

2. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

DAMIEN CRONIN

Director and Company Secretary

14 March 2013