Global Petroleum Regulatory News (GBP)

25 Jan 2006 15:04

Global Petroleum Ltd25 January 2006 Global Petroleum Limited Quarterly Report Company Announcements OfficeAustralian Stock Exchange LimitedLevel 4, 20 Bond StreetSYDNEY NSW 2000 Dear Sirs, Through its 20% direct holding in Blocks L-5 and L-7 in Kenya and its 14%shareholding in Falkland Oil and Gas Limited, Global has interests in a numberof undrilled and attractive oil and gas prospective areas, in which there arenumerous large potentially drillable targets in rocks of Cretaceous - Tertiaryage, which elsewhere contain a large proportion of the world's oil and gas.Through these holdings, Global is well positioned to benefit from success inthese areas. In addition, work is progressing well on the Company's otherprojects in Ireland and Malta. In December last year the Company sold its sharesin Falkland Gold and Minerals Limited. Kenya (Global 20%) At the end of the quarter the Company held 20% in two blocks (L-5 and L-7)offshore Kenya together with Woodside (50% and operator) and Dana (30%). In October 2005, the Company advised that, together with Dana, it had withdrawnfrom Blocks L-10 and L-11 offshore Kenya (refer to the Company's release dated31 October 2005 and the Company's September 2005 Quarterly Report). From the results of Woodside's mapping of the 2003 5,500km 2D seismic survey andthe 2004/05 3,600km 2D seismic survey, it is clear that L-5 and L-7 contain manyattractive prospects and leads. L-5 and L-7 contain over 30 prospects and leads,a number of which are each capable of containing several hundred to a billionbarrels of recoverable oil. There are Direct Hydrocarbon Indicators (DHI:potential oil and gas indicator) on some of the leads. In its 2004 AnnualReport, Dana noted that the two possible first targets - Pomboo (L-5) and Sokwe(L-7) each have the potential to contain over one billion barrels of oil inplace. More recently in its late 2005 presentation to investors, Woodside notes thatits Kenya holdings contain "multiple large structural prospects", which itincludes in its group of "big hit" targets for Woodside. The costs associated with Global's 20% equity in L-5 and or L-7 are carried forall activities including the drilling and testing of the first two wells.Woodside only earns its equity when these two wells are drilled. At the date of this report Woodside is still to make a firm commitment to a rigto drill in Kenya. Woodside continues to investigate rig possibilities and it ishoped that Woodside will have established a firm position on a rig in the nearfuture. Falkland Oil and Gas Limited ("FOGL") (Global shareholding 14.0%) www.fogl.com FOGL has an average 90% holding in 79,000 sqkm of prospective offshore licencesto the East and South of the Falkland Islands. FOGL's interim results were released on the 22nd of December 2005 followed byits announcement of the appointment of Tim Bushell as CEO early in January 2006(refer to Global's release dated the 11th of January 2006). In view of the prospectivity of its areas and the high level of industryinterest, FOGL has appointed Stellar Energy Advisors in late 2005, to manageFOGL's farmout programme which has the objective of introducing new companies tothe project. At a FOGL share price of £1.19/share (as at 20/1/06), Global's shareholding isvalued at about A$36.1m (21 cents/share). Falkland Gold and Minerals Limited ("FGML") (Global shareholding 10.1%)www.fgml.co.uk In December last year, the Company announced that it had sold its 10.1%shareholding in FGML at 10p/share, realising A$1.86 million (see announcementdated 19 December 2005). Ireland Licence Option 03/3 (Global 100%) Having extended the Licence Option through to 31 December 2006, the Companycontinues to seek the participation of a farminee to take over operatorship ofthe project and conduct work to earn significant equity in the project.Meantime, the Company is conducting reprocessing of seismic data over the mainprospect which has Jurassic and Lower Cretaceous targets capable of holding apotential 280 million barrels of oil in place. Malta Exploration Study Agreement (Global 100%) The ESA has been extended to 26 June 2006. The Company continues to seek theparticipation of a farminee to take over operatorship and conduct work to earn asignificant equity in the project. Meantime the Company is reprocessing keyseismic lines of the 1991 Texaco Survey as required by the Study Agreement withthe Malta Government. Previous mapping of the Gama and Beta prospects suggestthat they could be capable of containing 400 to 900 million barrels of oilrespectively. Iraq The Company continues to seek opportunities in the petroleum industry in Iraq. Annual General Meeting The Company's Annual General Meeting was held 24 November 2005 at which time thestatus of the Company's business and projects were presented to shareholders andadvisors in attendance. Please refer to the Company's website atwww.globalpetroleum.com.au . Shares released from Escrow In December 2005, 714,982 shares were released from escrow and quoted on the ASXand AIM exchanges. The shares were escrowed for 12 months as a result of thepurchase by the Company of Astral Petroleum Limited in December 2004. Yours sincerely, John ArmstrongExecutive Chairman Rule 5.3Appendix 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 Quarter ended ("current quarter")68 064 120 896 31 DECEMBER 2005 Consolidated statement of cash flows Cash flows related to operating activities Current Year to quarter date $A'000 (6 months) $A'000 1.1 Receipts from product sales and related debtors - - 1.2 Payments for (a) exploration and evaluation (140) (248) (b) development - - (c) production - - (d) administration (533) (909) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 83 197 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - management fees 40 169 ------------ ------------ Net Operating Cash Flows (550) (791) ------------ ------------ Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects - - (b)equity investments - - (c) other fixed assets (1) (2) 1.9 Proceeds from sale of: (a)prospects - - (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 (1) (2) ------------ ------------1.13 Total operating and investing cash flows (551) (793) ------------ ------------ Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc. - 1251.15 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) - (1) ------------ ------------ Net financing cash flows - 124 ------------ ------------ Net increase (decrease) in cash held (551) (669)1.20 Cash at beginning of quarter/year to date 6,042 6,1601.21 Exchange rate adjustments to item 1.20 - - ------------ ------------1.22 Cash at end of quarter 5,491 5,491 ------------ ------------ Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the relatedentities Current quarter $A'0001.23 Aggregate amount of payments to the parties included in item 1.2 1391.24 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 Amount available Amount used $A'000 $A'0003.1 Loan facilities Nil N/a3.2 Credit standby arrangements Nil N/a Estimated cash outflows for next quarter $A'000 4.1 Exploration and evaluation 260 4.2 Development - ------------------ Total 260 ------------------ Reconciliation of cash Reconciliation of cash at the end of the quarter (as Current Previousshown in the consolidated statement of cash flows) to quarter quarterthe related items in the accounts is as follows. $A'000 $A'0005.1 Cash on hand and at bank 209 1135.2 Deposits at call 5,282 5,9295.3 Bank overdraft - -5.4 Other - - ------------ ------------- Total: cash at end of quarter (item 1.22) 5,491 6,042 ------------ ------------- Changes in interests in mining tenements Tenement Nature of Interest at Interest reference interest beginning at end of (note (2)) of quarter quarter 6.1 Interests in mining ATP728P ATP Relinquished 100% Nil tenements relinquished, Block L10* Withdrawn from Block 20% Nil reduced or lapsed Block L11* Withdrawn from Block 20% Nil * Offshore Kenya 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarterDescription 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 7.2 Changes during quarter None (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary securities 170,294,787 170,294,787 7.4 Changes during quarter None (a) Increases through issues 714,982 (released from escrow) (b) Decreases through returns of capital, buy-backs 7.5 +Convertible debt securities None 7.6 Changes during quarter None (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options Exercise Expiry date price A.10,100,000 25 cents 30-06-2007 B.250,000 25 cents 31-12-2008 C.10,000,000 25 cents 30-06-2008 7.8 Issued during None quarter 7.9 Exercised during None quarter7.10 Expired during None quarter7.11 Debentures None 7.12 Unsecured notes None 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: 25 January 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