Global Petroleum Regulatory News (GBP)

31 October 2016

Global Petroleum Limited

SEPTEMBER 2016 QUARTERLY REPORT

The Board of Global Petroleum Limited ("Global" or "Company") is pleased to present its Quarterly Report for the period ending 30 September 2016.

Summary

· The Company's Petroleum Exploration Licence covering two Blocks, 1910B and 2010A in the Walvis Basin Offshore Namibia, was extended in December 2015 into Phase 2, which is for a duration of 24 months with a reduced Minimum Work Programme. In place of the previous well commitment in Phase 2, the Company undertook to reprocess and re-interpret previously acquired 2D seismic and to shoot 800 kilometres of new 2D. To this end the Company's technical team has evaluated reprocessed 2D seismic data from the 1990s and also reprocessed speculative 2D seismic data shot over its blocks in 2011/12 by TGS, both of which were purchased earlier this year. The evaluation of this data has proven to be very encouraging with regard to the hydrocarbon potential in Global's blocks. Notably the work has increased confidence in a syn-rift oil play in the outboard or deep water region offshore Namibia and the likely presence of both reservoir and source within the Company's blocks. Combined with the existing prospect portfolio within the blocks, this has improved Global's view on the overall prospectivity of the acreage. Planning for the acquisition of infill 2D seismic survey data - likely to be shot in 2017- is also in progress including liaison with the Namibian Ministry of Mines and Energy.

· Post the end of the current reporting period the Company announced that environmental decrees had been published by the Italian authorities in relation to two of the Company's four applications (d 82 F.R-GP and d 83 F.R-GP). The Company expects the environmental decrees in respect of the remaining two applications shortly. Publication of environmental decrees is the final administrative stage before final grant of the permits.

· Consistent with its previously announced strategy, over the course of the reporting period the Company has continued to engage with counterparties holding appropriate assets. A consistent feature in many potential opportunities which we have reviewed is the onerous work commitments which were undertaken by counterparties in a better macro-economic environment. This, combined with structural issues regarding availability of finance, continues to be a major hindrance in concluding transactions.

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

Namibian Project

The Namibian Project consists of an 85% participating interest in Petroleum Exploration Licence Number 29 ("Licence") covering Offshore Blocks 1910B and 2010A in the Republic of Namibia. The Licence, issued on 3 December 2010, originally covered 11,730 square kilometres and is located offshore Namibia in water depths ranging from 1,300 metres to 3,000 metres (Refer Figure 1). The Initial Exploration Period of the Licence expired in December 2014, and Global fulfilled its corresponding work obligations approximately halfway through the initial four year term. The Company agreed with the Namibian Ministry of Mines and Energy ("MME") a 12 month extension of the Initial Exploration Period to December 2015, on the basis of an agreed work programme which entailed further interpretation work on existing seismic data.

In December 2015, the Company entered into the First Renewal Exploration Period (Phase 2) of the Licence, making a mandatory relinquishment of 50% of the Licence Area. Phase 2 is for a duration of 24 months with a reduced Minimum Work Programme which does not now contain a well commitment. Instead, the Company has undertaken to reprocess and re-interpret previously acquired 2D seismic and to shoot 800 kilometres of new 2D. To this end the Company's technical team has evaluated reprocessed 2D seismic data from the 1990s which was purchased earlier this year, and has recently taken delivery of reprocessed speculative 2D seismic data shot over its blocks in 2011/12 by the seismic company, TGS. Work on the seismic continues to be very encouraging with regard to the hydrocarbon potential in Global's blocks. Notably the work has increased confidence in a syn-rift oil play in the outboard or deep water region offshore Namibia and the likely presence of both reservoir and source within the Company's blocks. Combined with the existing prospect portfolio within the blocks, this has improved Global's view on the overall prospectivity of the acreage. Planning for the acquisition of infill 2D seismic survey data - likely to be shot in 2017- is also in progress in liaison with the Namibian Ministry of Mines and Energy.

The Company's wholly owned subsidiary, Jupiter Petroleum (Namibia) Limited, remains operator with an 85% interest in the two blocks, with partners NAMCOR and Bronze Investments Pty Ltd (Bronze) holding 10% and 5% respectively, both as carried interests.

A map of Namibia showing the Global Licence is available at:

http://www.globalpetroleum.com.au/operations/namibia

Permit Applications in the Southern Adriatic, Offshore Italy

In August 2013, the Company submitted an application and proposed work programme and budget to the Italian Ministry of Economic Development for four exploration areas offshore Italy (the "Permit Applications" - Figure 2). The Permit Applications were then published on 30 September 2013 in the Official Bulletin allowing other competitive bids to be made over the subsequent three months. In accordance with Italian offshore regulations, Global subsequently submitted the relevant documentation to the respective authorities in relation to environmental requirements, and in connection with the satisfaction of certain technical and financial requirements. The Company has been informed that it has duly satisfied the technical/financial requirements, and post the end of the current reporting period the Company announced that environmental decrees had been published by the Italian authorities in relation to two of the Company's four applications (d 82 F.R-GP and d 83 F.R -GP). The Company expects the environmental decrees in respect of the remaining two applications shortly. Publication of environmental decrees is the final administrative stage before final grant of the permits.

A map of the southern Adriatic showing the Italian Permit Applications is available at:

http://www.globalpetroleum.com.au/uploads/files/reports/16-10-28-GBP-Environmental-Decrees-Final.pdf

The southern Adriatic is currently undergoing a significant new phase of oil and gas exploration. There have been a number of recent applications in the Adriatic close to the Permit Applications. Adjacent to Italian waters, Montenegro held a licensing round in 2014, with Croatia following suit in 2015. Seismic acquisition companies have begun large, multi-client 2D acquisition programmes across the entire basin, from Italy to Croatia. In 2013 Shell and Petromanas announced the Shiprag discovery onshore Albania, which is thought to be linked to the same petroleum source rock and similar reservoir to some of those identified in the offshore Adriatic.

Business Development

Global remains in a strong financial position from which to fund work activity on its Namibian acreage, its Italian application interests (subject to award), and to implement a change of focus through acquisition. Accordingly, we have continued over the past 12 months to engage with counterparties holding appropriate assets. However, the ability to raise the finance necessary for funding asset development following an acquisition remains challenging in the context of the relative slump in the commodity price. A consistent feature in many potential opportunities which we have reviewed is the onerous work commitments which were undertaken by potential counterparties in a better macro-economic environment.

We would note, by way of contrast, that over the equivalent period Global Petroleum has not taken on acreage with short-term well commitments. Still less have we utilised our funds to drill high-risk frontier exploration wells.

Your Company is therefore well placed in comparison to many of its peers. We retain a strong cash position and remain confident of making a key investment in due course.

ASX Listing Rule 5.4.3

Global provides the following information in accordance with ASX Listing Rule 5.4.3:

· The Company holds Petroleum Exploration Licence Number 29 covering Offshore Blocks 1910B and 2010A in the Republic of Namibia

· No granted petroleum tenements were acquired or disposed of by the Company during the reporting period.

· No beneficial percentage interests in joint venture, farm-in or farm-out agreements were acquired or disposed of by the Company during the reporting period.

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