Global Petroleum Regulatory News (GBP)

23 Oct 2006 16:04

Global Petroleum Ltd23 October 2006 Global Petroleum Limited - September 2006 Quarterly Report Kenya (Global 20%) On the 24th of August the Company announced that Repsol Exploracion S.A. (awholly owned subsidiary of Spanish based company Repsol YPF - an integrated oiland gas company which produces over 1 million barrels of oil equivalent per day)had joined the Company's Kenya joint venture which will drill two wells offshoreKenya beginning in the last quarter of this year - one each in Blocks L-5 andL-7. Subsequently (on 29/9/06) it was announced that the rig to drill the wells wasexpected to be handed over to Woodside as operator of the Company's Kenyaproject in the second half of October and this is still the case. Drillingoperations in Kenya should begin about a month later when the rig has mobilizedto Kenya. The first of the two wells is scheduled to be on the Pomboo prospect in L-5 andthis will be followed by the Sokwe prospect in L-7. L-5 and L-7 now contains some 50 prospects and leads, a number of which are eachcapable of containing several hundred million to a billion barrels ofrecoverable oil. There are Direct Hydrocarbon Indicators (DHI: potential oil andgas indicator) on some of the leads. Holdings in the L-5 and L-7 Joint Venture are: Woodside 30% (and operator);Dana 30%Repsol 20%Global 20% The costs associated with Global's 20% equity in L-5 and L-7 are carried for all activities including the drilling and testing of the first two wells. Woodside and Repsol earn their farm-in equity when these two wells are drilled. For further information, refer also to Global's releases dated 16/3/06, 4/5/06, 24/8/06 and 29/9/06 and Global's website: www.globalpetroleum.com.au Falkland Oil and Gas Limited ("FOGL") (Global shareholding 14.0%) FOGL has an average 90% holding in 65,000 sqkm of prospective offshore licencesto the East and South of the Falkland Islands. A relinquishment of 14,000 sqkmwas made by FOGL. In July, FOGL announced its intention to proceed with a Controlled SourceElectro-Magnetic Survey which has the "potential to indicate which of thenumerous prospects may contain hydrocarbons". FOGL advised that it expected tocommence this and further 2D seismic surveys before the end of 2006 and toannounce the results "early next year". At the time of announcing its preliminary unaudited results for the year ended31 March 2006, FOGL's CEO Mr Tim Bushell noted that the Company had "alreadybegun preliminary discussions with the other oil and gas companies operating inthe Falkland Islands with a view to forming a consortium to share a rig." He said "discussions will continue with regard to all rig options in order thatFOGL can be in a position to commence drilling in 2008". FOGL continues to seek companies to participate with FOGL in the future workprogram by way of farming into FOGL's licences. At a FOGL share price of 81p/share (as at 30/9/06), Global's shareholding isvalued at A$26.1m (15 cents/share). Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 80%) In June 2006, the Company announced that German international oil and gascompany RWE Dea AG had agreed to farmin to Blocks 4 & 5 for an initial 20%equity which will increase to 70% if RWE decides, prior to the expiry of the ESAon 31 December this year or any further extension of the ESA, to commit to thedrilling of a well and enter into a Production Sharing Agreement. Global wouldretain 30% equity including 3% on behalf of a UK marketing agency that assistedGlobal in the farm process. Global is fully carried through the seismic anddrilling programs including the abandonment of the well but excluding drill stemtesting of the well. RWE planned to undertake seismic studies in the second half of this year atRWE's cost and had made arrangements with the owners of a seismic vessel in midSeptember 2006 to commence a seismic survey in October 2006. On 22 September2006 the Company was notified that the vessel owners had informed RWE that theywere not able to provide their seismic vessel at the agreed time and that thevessel would not be available until the first half of calendar year 2007, if atall. At the end of September RWE was looking for a replacement vessel although,due to high oil and gas prices and the resultant increase in explorationactivity, such vessels are in short supply. The Company will advise the marketshould RWE be successful in securing a replacement vessel. Ireland Licence Option 03/3 (Global 100%) The reprocessing and subsequent interpretation of over 200km of 1982 vintageseismic lines in the Licence Option area has just been completed. The workconfirmed potential exploration targets of Cretaceous and Jurassic age. Acampaign is being undertaken to market the prospects to potential farminees, totake over operatorship of the project and conduct work to earn significantequity in the project. Other Projects The Company continues to investigate opportunities in the petroleum industry inother countries, including Iraq. Yours sincerely, John ArmstrongExecutive Chairman The technical information in this report was prepared by Dr John Armstrong PhD,BSc (1st Hons) Geo, executive Chairman of Global Petroleum Limited who has 35years experience in the upstream oil and gas industry. The information has beenreviewed as to its reliability by Mr Wal Muir BSc Hons (UNSW) MBA (UQ), who is apartner in MBA Petroleum Consultants. MBA provides independent technical adviceto Global. Wal Muir has over 27 years experience in the petroleum explorationindustry both in Australia and overseas. He is a Distinguished Member of thePetroleum Exploration Society of Australia and a member of the AustralianSociety of Exploration Geophysicists. Appendix 5B Rule 5.3 Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entityGLOBAL PETROLEUM LIMITED ABN Quarter ended ("current quarter") 68 064 120 896 30 SEPTEMBER 2006 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating $A'000 (3 months)activities $A'000 1.1 Receipts from product sales and - - related debtors 1.2 Payments for (a) exploration and (96) (96) evaluation (b) development - - (c) production - - (d) administration (449) (449) 1.3 Dividends received - - 1.4 Interest and other items of a 99 99 similar nature received 1.5 Interest and other costs of finance - - paid 1.6 Income taxes paid - - 1.7 Other - management fees 10 10 Net Operating Cash Flows (436) (436) Cash flows related to investing activities1.8 Payment for purchases of: (a) - - prospects (b)equity investments - - (c) other fixed assets (2) (2) 1.9 Proceeds from sale of: (a)prospects 179 179 (b)equity investments - - (c)other fixed assets - - 1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - Net investing cash flows 177 177 1.13 Total operating and investing cash flows (brought forward) (259) (259) Cash flows related to financing activities 1.14 Proceeds from issues of shares, - - options, etc. 1.15 Proceeds from sale of forfeited - - shares 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (provide details if - - material) Net financing cash flows - - Net increase (decrease) in cash (259) (259) held 1.20 Cash at beginning of quarter/year 6,991 6,991 to date 1.21 Exchange rate adjustments to item - - 1.20 1.22 Cash at end of quarter 6,732 6,732 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties 147 included in item 1.2 1.24 Aggregate amount of loans to the parties included - in item 1.10 1.25 Explanation necessary for an understanding of the transactions 1.23 - Payment of salaries/fees to directors under approved agreements Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A'000 $A'0003.1 Loan facilities Nil N/a 3.2 Credit standby arrangements Nil N/a Estimated cash outflows for next quarter $A'0004.1 Exploration and evaluation 1504.2 Development - Total 150 Reconciliation of cash Reconciliation of cash at the end of the Current quarter Previous quarterquarter (as shown in the consolidatedstatement of cash flows) to the related $A'000 $A'000items in the accounts is as follows.5.1 Cash on hand and at bank 55 5935.2 Deposits at call 6,677 6,3985.3 Bank overdraft - -5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 6,732 6,991 Changes in interests in mining tenements Tenement Nature of interest Interest Interest reference at at end of (note (2)) beginning quarter of quarter6.1 Interests in mining None tenements relinquished, reduced or lapsed 6.2 Interests in mining None tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total number Number quoted Issue price Amount paid up per security per security (see note 3) (see note 3) (cents) (cents)7.1 Preference + None securities (description)7.2 Changes during None quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions7.3 +Ordinary 172,294,787 172,294,787 securities 7.4 Changes during None quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs7.5 +Convertible None debt securities (description)7.6 Changes during None quarter (a) Increases through issues (b) Decreases through securities matured, converted7.7 Options Exercise Expiry date (description price and conversion A. 8,100,000 30-06-2007 factor) 25 cents B. 250,000 31-12-2008 25 cents C. 10,000,000 30-06-2008 25 cents7.8 Issued during None quarter7.9 Exercised None during quarter7.10 Expired during None quarter7.11 Debentures None (totals only)7.12 Unsecured None notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Corporations Act or other standardsacceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Date: 23 October 2006 Print name: Desmond Frederick Olling Notes 1 The quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect ofinterests in mining tenements acquired, exercised or lapsed during the reportingperiod. If the entity is involved in a joint venture agreement and there areconditions precedent which will change its percentage interest in a miningtenement, it should disclose the change of percentage interest and conditionsprecedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is notrequired in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock Exchange