Quarterly Report

31 Jul 2009 09:12



31 July 2009

Global Petroleum Limited - June 2009 Quarterly Report

Uganda EA5 Prospect (Global earning up to a 50% interest)

During the quarter, Neptune Petroleum (Uganda) Limited ("Neptune"), a wholly-owned subsidiary of Tower Resources plc ("Tower"), drilled Iti-1, the first well in Exploration Area 5 in Uganda, in which Global is earning up to a 50% interest. 

Tower advised that the well, which was drilled to a total depth of 592 meters, did not encounter any producible reservoir sands at the Iti-1 location. Minor hydrocarbon shows were monitored during drilling but evidence of limited quantities of oil in the lowermost target horizon remained ambiguous in the subsequent down-hole well logs and pressure test data. The lack of reservoir at this location did not justify further testing or the immediate move to drill a second well. 

A complete re-evaluation of the well data, combined with all other available technical data, is now being undertaken and is expected to conclude in September 2009. Global is awaiting the results of this work before electing to participate in a second well.

Leighton Prospect (15% WI, 11.25% NRI)

The Company advises that Hainey & Hainey Petroleum Consultants were engaged to provide an independent reserves report for the Company's 15% WI (11.25% NRI) in the Leighton Prospect in Texas, USA.

As at 1 July 2009, the proved reserves are estimated at 0.23 mmboe. In addition, probable reserves are estimated at 0.12 mmboe. 

The information was prepared by Delilah B Hainey, P.E. of Hainey & Hainey Petroleum Consultants, a reservoir consultant who is qualified in accordance with ASX Listing Rule 5.11 and who has consented to the reserves contained in this report being released.

Global has now commenced receiving revenue from the production of both Peeler #1 and Tyler Ranch #1.

Kenya

As previously advised, notice has been given to Woodside Energy (Kenya) Pty Limited ("Woodside") terminating the Farm-In Agreement ("FIA"). The termination notice has been given based on Woodside's refusal to drill a second exploratory well in the project area in accordance with the FIA and its failure to take any steps to remedy this refusal, which the Company considers to be a repudiation and breach of the FIA.

The Company and joint venture partner Dana Petroleum (E&P) Limited are continuing legal proceedings to recover losses suffered as a result. The proceedings have progressed to the pre-trial disclosure stage. The Company anticipates a hearing in the English High Court of Justice in 2010.

The Board continues to review opportunities for other acquisitions, joint ventures, or investments in the resources sector, both domestic and overseas, which may enhance shareholder value.

Mark Savage

Chairman

Glossary:

mmboe: million barrels of oil equivalent (including gas converted to oil equivalent barrels on basis of 6mcf to 1 barrel of oil equivalent) 

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