Global Petroleum Regulatory News (GBP)

31 Jul 2006 12:33

Global Petroleum Ltd31 July 2006 Global Petroleum Limited - June 2006 Quarterly Report Kenya (Global 20%) On 4 May the Company announced that Woodside had elected to drill the second ofits Kenya farm-in wells. The well will be drilled in L-7 before June 2008. The Company holds 20% in two blocks (L-5 and L-7) offshore Kenya together withWoodside (50% and operator) and Dana (30%). On 16 March, the Company announced that Woodside had secured the deepwatervessel "Chikyu" to drill the first Kenya well which will be in Licence L-5commencing about October 2006, with the timing dependent on met-ocean conditionsand the 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. 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. The costs associated with Global's 20% equity in L-5 and L-7 are carried for allactivities including the drilling and testing of the first two wells. Woodsideearns its 50% equity in L-5 and L-7 when these two wells have been drilled. Falkland Oil and Gas Limited ("FOGL") (Global shareholding 14.0%) FOGL has an average 90% holding in 79,000 sqkm of prospective offshore licencesto the East and South of the Falkland Islands. The farmout process continues with the objective of securing partners withappropriate financial capability and deepwater experience. FOGL announced on26th July 2006 that it intends to conduct a controlled source electromagneticsurvey over the Company's licences in the South and East Falkland Basins. FOGLannounced its preliminary results for the year ended 31 March 2006 on 11th July2006. At a FOGL share price of £1.02/share (as at 26 July 06), Global's shareholdingis valued at A$31.7m (18.4 cents/share). Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 80%) Blocks 4 & 5 contain four leads (1 Triassic, 2 Jurassic / Cretaceous, 1 Tertiary) and a number of natural oil slicks on the ocean surface have beendetected by satellite imagery. The Company announced on 23 June 2006 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 ESAin December this year, to commit to the drilling of a well and enter into aProduction Sharing Agreement. Global would retain 30% equity including 3% onbehalf of a UK marketing agency that assisted Global in the farm process. Globalis fully carried through the seismic and drilling programs including theabandonment of the well but excluding drill stem testing of the well. RWE plansto undertake seismic studies in the second half of this year at RWE's cost. On the basis of the farmin the Malta government extended the ESA by six monthsto 31 December 2006 to allow the seismic process to proceed. Ireland Licence Option 03/3 (Global 100%) Having extended the Licence Option through to 31 December 2006 and havingcompleted reprocessing of 200kms of seismic data over the main prospect whichhas Jurassic and Lower Cretaceous targets, the Company continues to seek theparticipation of a farminee to take over operatorship of the project and conductwork to earn significant equity in the project. Other Projects The Company continues to investigate opportunities in the petroleum industry inother countries, including Iraq. 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. Rule 5.3 Appendix 5B Mining exploration entity quarterly reportIntroduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entityGLOBAL PETROLEUM LIMITED ABN - 68 064 120 896Quarter ended ("current quarter") - 30 JUNE 2006 Consolidated statement of cash flows Current quarter Year to dateCash flows related to operating activities $A'000 (12 months) $A'000 1.1 Receipts from product sales and related debtors - - 1.2 Payments for (a) exploration and evaluation (196) (655) (b) development - - (c) production - - (d) administration (315) (1,533)1.3 Dividends received - -1.4 Interest and other items of a similar nature received 91 3851.5 Interest and other costs of finance paid - -1.6 Income taxes paid - -1.7 Other - management fees - 191 ----- ------- Net Operating Cash Flows (420) (1,612) ----- ------- Cash flows related to investing activities1.8 Payment for purchases of: (a) prospects - - (b)equity investments - (5) (c) other fixed assets - -1.9 Proceeds from sale of: (a) prospects - - (b)equity investments - 1,827 (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 - 1,822 ----- -------1.13 Total operating and investing cash flows (carried forward) (420) 210 ----- -------1.13 Total operating and investing cash flows (brought forward) (420) 210 ----- ------- Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 500 625 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) (3) (4) ----- ------- Net financing cash flows 497 621 ----- ------- Net increase (decrease) in cash held 77 831 1.20 Cash at beginning of quarter/year to date 6,914 6,1601.21 Exchange rate adjustments to item 1.20 - - ----- ------- 1.22 Cash at end of quarter 6,991 6,991 ----- ------- 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 included in item 1.2 163 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 availableAdd notes as necessary for an understanding of the position. Amount available Amount used $A'000 $A'000 3.1 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 150 4.2 Development - Total 150 Reconciliation of cash Reconciliation of cash at the end of the Current quarter Previous quarterquarter (as shown in the consolidated $A'000 $A'000statement of cash flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 593 156 5.2 Deposits at call 6,398 6,758 5.3 Bank overdraft - - 5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 6,991 6,914 Changes in interests in mining tenements Tenement Nature of interest Interest at Interest at reference (note (2)) beginning end of of quarter quarter 6.1 Interests in mining Malta Exploration Farminee earning 100% 80% tenements relinquished, Study Agreement 20% reduced or lapsed Area 3 - Blocks 4 & 5 6.2 Interests in None mining 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 Issue price per Amount paid quoted security (see up per security note 3) (cents) (see note 3) (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 securities 172,294,787 172,294,787 7.4 Changes during quarter (a) Issued (a) Increases 2,000,000 through issues (b) Decreases through returns of capital, buy-backs7.5 +Convertible debt securities None (description)7.6 Changes during quarter None (a) Increases through issues (b) Decreases through securities matured, converted7.7 Options Exercise price Expiry date (description A. 8,100,000 25 cents 30-06-2007 and conversion B. 250,000 25 cents 31-12-2008 factor) C. 10,000,000 25 cents 30-06-2008 7.8 Issued during quarter None7.9 Exercised during quarter 2,000,000 7.10 Expired during quarter None7.11 Debentures (totals only) None7.12 Unsecured notes (totals only) None Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Company Secretary31 July 2006Desmond Frederick Olling Notes 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged 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 of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a 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