Global Petroleum Regulatory News (GBP)

4 May 2006 07:26

Global Petroleum Ltd04 May 2006 4 May 2006 Global Petroleum Limited ("Global") WOODSIDE COMMITS TO SECOND EXPLORATION WELL IN JOINT VENTURE WITH GLOBAL AND DANA IN OFF-SHORE KENYA The Woodside led Joint Venture has elected to enter the 1st AdditionalExploration Phase in PSC L-7, which includes a one well commitment to be drilledbefore June 2008, Global Petroleum Limited announced today. As a result of both the Dana and Woodside farm-in, Global will be fully carriedthrough the first exploration wells in each of L5 and L7 and retains 20%equity. Other equity levels are Woodside Energy (Kenya) Pty Ltd 50% (Operator)and Dana 30%. Welcoming the decision, Global Chairman Dr John Armstrong, said: "This is anexcellent outcome for Global. The extended commitment from Woodside, asuccessful major oil and gas exploration and development company, supportsGlobal's confidence in this under-explored province." The Joint Venture is scheduled to drill the first of the two wells in Block L-5beginning October 2006, with the timing dependent on met-ocean conditions andthe arrival of the rig in Kenya. The board of the Japanese Agency forMarine-Earth Science and Technology (JAMSTEC) owner of the deepwater drillingvessel has now approved the rig contract with Woodside.Dr Armstrong said Woodside and the Joint Venture's further commitment in L7support's Global's view regarding the prospectivity of the region: * Woodside regards Kenya as an under-explored frontier area with significant potential, identifying it as "the most prospective part of east Africa, with several large geological structures hosting multiple targets similar to those found on Australia's North West Shelf" (Woodside website) * Kenya has "multiple large structural prospects" (Woodside presentation November 2005) * Woodside has identified some 50 prospects and leads, a number of which are capable of holding several hundred million to a billion barrels of recoverable oil. Further information Global Petroleum LimitedDr John Armstrong, Executive Chairman Tel: +61 (0) 732 111 122 Fax: + 61 (0) 732 110 133 Web: www.globalpetroleum.com.au Bell Pottinger Corporate & FinancialNick Lambert Tel: +44 (0) 20 7861 3232 * The technical information in this report was prepared by Dr John ArmstrongPhD, BSc (1st Hons) Geo, executive Chairman of Global Petroleum Limited who has35 years experience in the upstream oil and gas industry. * The information has been reviewed as to its reliability by Mr Wal Muir BScHons (UNSW) MBA (UQ), who is a partner in MBA Petroleum Consultants. MBAprovides independent technical advice to Global. Wal Muir has over 27 yearsexperience in the petroleum exploration industry both in Australia and overseas.He is a Distinguished Member of the Petroleum Exploration Society of Australiaand a member of the Australian Society of Exploration Geophysicists. This information is provided by RNS The company news service from the London Stock Exchange