Final Results

Global Petroleum Ltd
20 September 2006

                             Global Petroleum Ltd

              Preliminary Results for the year ended 30 June 2006


Principal activities


   • The principal activities of the Company during the course of the
     financial year were:


   • A continuing 20% interest in two production sharing contracts related to
     blocks L-5 and L-7 in offshore Kenya. The Company withdrew from L-10 and
     L-11 in Kenya during the year.


   • An 80% interest in the Malta Exploration Study Agreement after farminee
     agreed to enter for an initial 20% interest in Blocks 4 and 5 in offshore
     Malta.


   • Ireland Licensing Option held 100% in four blocks in the North Celtic
     Sea Basin. Reprocessing work program and marketing program to target
     potential farminees.


   • An investment of 14% in Falkland Oil and Gas Limited which holds a 77.5%
     interest in seven offshore petroleum licences covering approximately 15,000
     km2 and 100% interest in a further seven licences covering approximately
     50,000 km2 in offshore Falkland Islands.


   • An investment of 10% in Falkland Gold and Minerals Limited was sold in
     December 2005.



Review and results of operations

Consolidated loss after tax attributable to the members of the Company for the
year ended 30 June 2006 was $957,307 (2005: $1,629,162).



Kenya

The Company holds 20% in two blocks (L-5 and L-7) offshore Kenya together with
Woodside Energy (30% and operator), Dana Petroleum (30%) and Repsol Exploracion
SA (20%). On 24 August 2006 the Company announced that Woodside had farmed out a
20% interest to Repsol effective from 1 May 2006.

The Company withdrew from L-10 and L-11 in October 2005 following Woodside's
withdrawal from L-11 in the previous month. Woodside had withdrawn from L-10 in
August 2004. In Block L-10 Dana Petroleum, as operator after Woodside's
withdrawal, was unable to reach agreement on terms for a work program with the
Kenyan Government for an extension to the Block and so both remaining parties
decided to withdraw. In Block L-11 the Company and Dana withdrew after deciding
that the Block was not as prospective as either of L5 or L7.


Following interpretation of a total of 9,100 km of 2D seismic recorded during
two surveys (5,500 km in 2003 and 3,600 km between November 2004 and January
2005) it is clear that L-5 and L-7 contain some 50 prospects and leads from
which the Joint Venture has selected its prospects for drilling.


The Company announced on 16 March 2006 that Woodside had secured a drilling rig
and that it would drill the first well in L-5, probably on the Pomboo prospect.
The search for a deep water rig had been ongoing since May 2005 and the time
taken to secure the rig reflected strong demand for this type of rig brought
about by the increased worldwide demand for oil.


On 4 May 2006 Woodside elected to drill its second well, likely to be drilled on
the Sokwe prospect in L-7 before June 2008. However the JV has the option of
drilling the second well immediately after the first or subsequently when the
results of the first well are assessed. The first well is scheduled for October
2006 in L-5 on Pomboo.


Malta

The Company has 80% and RWE Dea has 20% interest in Blocks 4 and 5 in offshore
Malta. The Exploration Study Agreement ('ESA') expires 31 December 2006 after
having been extended by the Malta Government.

The Company announced on 23 June 2006 that German international oil and gas
company RWE Dea AG had agreed to farm-in to Blocks 4 and 5 for an initial 20%
equity which will increase to 70% if RWE decides, prior to the expiry of the ESA
on 31 December this year, to commit to the drilling of a well and enter into a
Production Sharing Agreement.

If RWE decides to drill a well, Global Petroleum would retain 30% equity
including 3% on behalf of a UK marketing agency that assisted Global Petroleum
in the farm-in process. Global Petroleum is fully carried through the seismic
and drilling programs including the abandonment of the well but excluding drill
stem testing of the well. RWE plans to undertake seismic studies in the second
half of 2006 at its own cost.

RWE Dea is an international oil and gas producer and explorer and is part of the
RWE Group, one of Europe's largest companies. It is active in exploration and
production as operator and non-operating partner in Germany, the UK, Norway,
Denmark, Egypt, Dubai and Kazakhstan, and holds exploration licences in Algeria,
Libya and Poland.

On the basis of the farm-in the Malta government extended the ESA by six months
to 31 December 2006 to allow the seismic project to proceed.


Irish licensing option

The Company has 100% interest in parts of blocks 57/3, 57/4, 57/8 and 57/9 in
the North Celtic Sea Basin, offshore Ireland.

The Irish Minister for Communications, Marine and Natural Resources granted the
Irish Licensing Option to Astral (Ireland) on 5 September 2003. The option has
been extended until 31 December 2006.

During the year the Company completed a technical program involving reprocessing
of 200 km of 1982 seismic data over the main Tramore prospect which has Jurassic
and Lower Cretaceous targets. The 1984 well drilled in Block 57/9 was a
Cretaceous oil and gas discovery flowing gas at the rate of 2.6 MMCF/day and
recovering oil at the rate of 16 bbls/day from separate Cretaceous sandstone
reservoirs.

A marketing campaign to introduce a new company to the project is in progress.


FOGL

The Company holds 14% of the issued capital of FOGL. FOGL has an average 90%
holding in 65,000 km2 of prospective offshore licences to the East and South of
the Falkland Islands. Relinquishments totalling 14,000 km2 were made from the
southern licences during the year.

At the end of May 2006 a total of 22,450 km of 2D seismic has been recorded in
two surveys. Progress has been made in the mapping and identification of
prospects and leads where over 100 have been identified. FOGL says that at least
10 leads have the potential to hold more than one billion barrels of oil and a
further 20 prospects and leads each have the potential to contain reserves of
between 500 million and one billion barrels. The farmout process continues with
the objective of FOGL securing partners with appropriate financial capability
and deepwater experience. However, FOGL is also seeking a drilling rig in its
own right so that drilling can commence in 2008. Options include seeking a
farminee that has access to a rig, rig owners that could participate directly or
sharing the rig with other Falkland oil companies operating in the Falkland
Islands.

The 2006/07 work program is designed to define multiple prospects so that they
may be prioritised for drilling in 2008. The work program will consist of
Controlled Source and Electromagnetic surveys (CSEM), 2D seismic and seabed
coring. The CSEM defines resistive anomalies in the subsurface and is a direct
indicator of the presence of hydrocarbons. Water depths for the identified
prospects range from 500 to 1500 metres.


Astral assets

The two assets acquired from the purchase of all the shares in Astral Petroleum
Limited (Astral) in December 2004 were the Malta Exploration Study Agreement and
the Irish Licensing Option. The Company paid £195,000 (A$504,322) plus one
million fully paid ordinary shares in the Company at an issue price of A$0.37.
The vendors of Astral included directors and substantial shareholders of the
Company Mr Blakey and Mr Taylor together with a company associated with both of
them. At the date of acquisition, the vendors of Astral also included an entity
which was a related party of Mr Savage who is a director of the Company. This
entity ceased to be a related party of Mr Savage subsequent to the acquisition.

Shareholders approved the issue of an additional four million fully paid
ordinary shares in the Company in regards to the Malta Exploration Study
Agreement and a further four million fully paid ordinary shares (ie a total of
eight million shares) in regards to the Irish Licensing Option, if each were to
be farmed out on certain terms and conditions by 25 November 2005. This date was
extended at the 2005 AGM by shareholders to 30 June 2006. Directors, excluding
Messrs Blakey and Taylor who declared an interest in the matter, agreed that the
farmout of the Malta Exploration Study Agreement to RWE Dea in June 2006
qualified for the issue of the additional four million shares, provided RWE Dea
commits to the drilling of a well before the expiry date of the Malta
Exploration Study Agreement ie, 31 December 2006, or any further extension
thereof. No farmout has been achieved for the Irish Licensing Option and
therefore the potential for the issue of four million shares in regard to this
project has lapsed.


FGML

On 19 December 2005 the Company announced that it had sold its 10.1%
shareholding in FGML at 10 pence/share for A$1.83 million, realising a gain on
disposal of A$1.09 million.


Other

The Company will continue to seek projects which fit its strategy of leveraging
value in projects and which deliver value to shareholders.



Significant changes in the state of affairs

The consolidated entity's total assets increased during the current financial
year by $33,156,499 to $60,240,429 (2005: $27,083,930), principally due to a
change in accounting policy regarding the measurement of the consolidated
entity's investment in Falkland Oil and Gas Limited (FOGL). With effect from 1
July 2005, the consolidated entity adopted AASB 132 Financial Instruments:
Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and
Measurement.

The adoption of AASB 139 has resulted in the consolidated entity recognising
available-for-sale investments as assets at fair value. Under previous GAAP, the
consolidated entity recorded available-for-sale investments at cost. The
increase in the carrying value of the consolidated entity's investment in FOGL
from the previous financial year is approximately $33.4 million. Refer to Notes
11 and 27 to the consolidated financial statements.


Dividends

No dividends have been declared, provided for or paid in respect of the
financial year ended 30 June 2006.



Events subsequent to reporting date

On 24 August 2006 the Company announced that Repsol Exploracion S.A. (a
wholly-owned subsidiary of Spanish based company Repsol YPF) has joined the
Kenya joint venture which will drill two offshore wells in the last quarter of
this calendar year, one each in Blocks L-5 and L-7. Holdings in the L-5 and L-7
joint venture are now: Woodside Energy 30% (and operator); Dana Petroleum 30%;
Repsol Exploracion 20%; and Global Petroleum 20%.

Other than the matters discussed above there has not arisen in the interval
between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of
the directors of the Company, to affect significantly the operations of the
consolidated entity, the results of those operations or the state of affairs of
the consolidated entity in future financial years.


Likely developments

The consolidated entity will continue to investigate opportunities to add
projects to its portfolio which fit its strategy.

Directors' interests

The relevant interest of each director in the shares and rights and options over
such instruments issued by the companies within the consolidated entity and
other related bodies corporate, as notified by the directors to the Australian
Stock Exchange in accordance with S205G(1) of the Corporations Act 2001, at the
date of this report is as follows:



                                 Interest in securities at
                                  the date of this report
                     Ordinary shares (1)                Options
Dr J D Armstrong                 266,667         18,000,000 (2)
Mr P Blakey                   28,924,318                      -
Mr P Dighton                       - (3)            250,000 (4)
Mr P Taylor                   28,924,318                      -
Mr M Savage                            -                      -


(1) Ordinary shares means fully paid ordinary shares in the capital of the
Company.

(2) 8 million incentive options exercisable at 25 cents on or before 30 June
2007 and otherwise with the terms contained in the Company's Prospectus dated 31
May 2002. A further 10 million options exercisable at 25 cents on or before 30
June 2008 and subject to the grant of a production sharing agreement in Iraq to
Global Petroleum.

(3) Mr Peter Dighton sold 26,667 shares on 28 June 2006.

(4) Incentive options to subscribe for one ordinary share exercisable at 25
cents on or before 31 December 2008.


Share options

Unissued shares under option

There were no options issued to any director or any officer of the Company
during or since the end of the financial year.

At the date of this report unissued ordinary shares of the Company under option
are:

Expiry date   Exercise price  Number of shares
30 June 2007       $0.25             8,100,000
30 June 2008       $0.25            10,000,000
31 December 2008   $0.25               250,000
                                    ----------
                                    18,350,000
                                    ----------


All options expire on their expiry date, such that they can be exercised after
termination as an employee or director of the Company.

Shares issued on exercise of options

During or since the end of the financial year, the Company issued ordinary
shares as a result of the exercise of options as follows (there were no amounts
unpaid on the shares issued):


Number of shares             Amount paid on each share
2,500,000                    $0.25

Indemnification and insurance of officers and auditors

Indemnification

To the extent permitted by law the Company indemnifies every person who is, or
has been, a director or secretary, and may, by deed, indemnify or agree to
indemnify a person who is, or has been, an officer of the Company or a
subsidiary of the Company, against:


a) liability incurred by that person, in his or her capacity as such a director,
secretary or officer, to another person provided that liability is not an
Excluded Liability (as defined by the Company's Constitution); or a liability
for legal costs and expenses; and


b) legal costs and expenses (other than Excluded Legal Costs, as defined by the
Company's Constitution) incurred by that person in defending proceedings for a
liability incurred by that person in his or her capacity as such a director,
secretary or officer.

To the extent permitted by law, the Company may make a payment to a person who
is a director or secretary for the legal costs and expenses incurred by that
person in defending proceedings for a liability incurred by that person in his
or her capacity as a director or secretary provided that the legal costs and
expenses are not Excluded Legal Costs (as defined by the Company's Constitution)
at the time the payment is made; and the person is obliged to repay the legal
costs and expenses to the extent that they become Excluded Legal Costs.


Insurance premiums

Since the end of the previous financial year no insurance premiums were paid by
the Company to insure directors and officers of the Company.


Non-audit services


During the year KPMG, the Company's auditor, has performed certain other
services in addition to their statutory duties.


The board has considered the non-audit services provided during the year by the
auditor and the board is satisfied that the provision of those non-audit
services during the year by the auditor is compatible with, and did not
compromise the auditor independence requirements of the Corporations Act 2001,
for the following reasons:

   • all non-audit services were subject to the corporate governance
     procedures adopted by the Company and have been reviewed by the board to
     ensure they do not impact the integrity and objectivity of the auditor; and

   • the non-audit services provided do not undermine the general principles
     relating to auditor independence as set out in Professional Statement F1
     Professional independence, as they did not involve reviewing or auditing the
     auditor's own work, acting in a management or decision making capacity for
     the Company, acting as an advocate for the Company or jointly sharing risks
     and rewards.

Details of the amounts paid to the auditor of the Company, KPMG, and its related
practices for audit and non-audit services provided during the year are set out
in Note 4 to the consolidated financial statements included on page 37 of the
consolidated financial report.



Lead auditor's independence declaration

The Lead auditor's independence declaration is set out on page 20 and forms part
of the directors' report for the financial year ended 30 June 2006.


Signed in accordance with a resolution of directors.

J D Armstrong
Director
13 September 2006

                               
                                INCOME STATEMENTS
                        FOR THE YEAR ENDED 30 JUNE 2006

                                Note          Consolidated          Global Petroleum
                                            2006        2005        2006        2005
                                               $           $           $           $
Revenue
Rendering of services            2        63,555     424,681           -           -
Other income
Gains on disposal -                    
available-for-sale investments         1,093,589           -           -           -
Expenses
Salaries and employee benefits         
expense                                (466,797)   (444,000)   (446,222)   (265,848)
Consulting and professional fees       (483,079)   (862,751)   (504,098)   (742,816)
Shareholder costs                      (143,311)   (172,011)    (88,615)   (126,429)
Occupancy costs                         (32,107)    (46,283)    (22,571)    (12,124)
Depreciation expense            2, 3    (20,603)    (58,251)    (12,697)    (13,940)
Administrative and other               
expenses                               (161,986)   (235,409)   (151,059)   (148,713)
Exploration and evaluation       
expenditure written off          2   (1,166,216)   (404,851)   (323,241)   (274,815)
Losses on disposal -                           
exploration assets                             -    (81,768)           -   (166,585)
Losses on disposal -                           
non-current assets                             -    (14,678)           -       (355)
Write-down of investment in                    
controlled entity                              -           -   (842,975)   (613,234)
                                     -----------------------------------------------
Results from operating               
activities                           (1,316,955) (1,895,321) (2,391,478) (2,364,859)

Financial income - interest              
income                                   339,178     347,527     338,808     353,570
Financial income - dividends                  
from controlled entities                       -           -           -     652,793
Net foreign exchange gain /               
(loss)                                    20,470       1,103       (504)       (986)
                                     -----------------------------------------------
Net financing income                     359,648     348,630     338,304   1,005,377
                                     -----------------------------------------------

Share of losses of associates                  -    (82,471)           -           -
                                     -----------------------------------------------
Loss before tax                        (957,307) (1,629,162) (2,053,174) (1,359,482)

Income tax expense               5             -           -           -           -
                                     -----------------------------------------------
Loss for the period
attributable to equity holders
of the parent                    2     (957,307) (1,629,162) (2,053,174) (1,359,482)
                                     ===============================================

                                           Cents       Cents
Basic and diluted loss per       
share                            6        (0.56)      (0.99)




                            STATEMENTS OF CASH FLOWS
                        FOR THE YEAR ENDED 30 JUNE 2006

                               Note           Consolidated          Global Petroleum
                                            2006        2005        2006        2005
                                               $           $           $           $
Cash flows from operating activities
Cash paid to suppliers and           
employees                            (1,163,137) (1,293,623) (1,114,875)   (861,758)
Interest received                        384,973     330,522     384,603     336,565
Dividends received from                        
controlled entities                            -           -           -     652,793
Management fees received                 192,226     359,165           -           -
                                     -----------------------------------------------
Net cash from operating                
activities                             (585,938)   (603,936)   (730,272)     127,600
                                     -----------------------------------------------

Cash flows from investing activities
Acquisition of property, plant and       
equipment                                (4,836)    (42,420)     (4,836)    (35,579)
Exploration expenditure, including
overheads                            (1,025,725)   (592,201)   (315,870)   (176,715)
capitalised
Proceeds from disposal of                      
exploration assets                             -     850,745           -           -
Proceeds from disposal of              
investments                            1,827,416           -           -           -
Acquisition of subsidiaries                    -   (721,178)           -   (721,178)
Acquisition of investments                     - (1,183,369)           -           -
Proceeds from other financial                  
assets                                         -      60,886           -           -
Repayment of loans from controlled             
entities                                       -           -   2,037,962     599,053
Advances to controlled entities                -           -   (761,279) (2,018,616)
                                      ----------------------------------------------
Net cash from investing activities       796,855 (1,627,537)     955,977 (2,353,035)
                                      ----------------------------------------------

Cash flows from financing activities
Proceeds from the issue of               
share capital                            625,000   5,661,518     625,000   5,661,518
Share issue expenses                     (4,451)   (134,040)     (4,451)   (134,040)
Costs of admission to the
Alternative Investment                         
Market of the London Stock Exchange            -   (446,724)           -   (446,724)
                                      ----------------------------------------------
Net cash from financing activities       620,549   5,080,754     620,549   5,080,754
                                      ----------------------------------------------

Net increase in cash and cash            
equivalents                              831,466   2,849,281     846,254   2,855,319
Cash acquired on acquisition                   
of subsidiaries                                -      21,126           -           -
Cash and cash equivalents at           
1 July                                 6,159,540   3,289,133   6,135,310   3,279,991
                                       ---------------------------------------------
Cash and cash equivalents at           
30 June                                6,991,006   6,159,540   6,981,564   6,135,310
                                       =============================================




                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


1. SEGMENT REPORTING

Segment information is presented in respect of the consolidated entity's
geographical segments. The primary format, geographical segments, is based on
the consolidated entity's management and internal reporting structure.

Inter-segment pricing is determined on an arm's length basis. Segment results,
assets and liabilities include items directly attributable to a segment as well
as those that can be allocated on a reasonable basis. Segment capital
expenditure is the total cost incurred during the period to acquire segment
assets that are expected to be used for more than one period.

Geographical segments

The consolidated entity's geographical segments are as follows:

                                                Falkland                    
             Australia    Europe      Africa     Islands     Iraq Indonesia  Eliminations Consolidated
2006                 $         $           $          $        $         $              $            $
Segment revenue
External revenue     -         -           -     63,555        -         -              -       63,555
                 -------------------------------------------------------------------------------------
Total revenue                                                                                   63,555
                                                                                             =========

Result
Segment result (632,626) (300,777) (1,068,502)  1,099,458 (54,860)         -            -    (957,307)
               ---------------------------------------------------------------------------------------
Income tax expense                                                                                   -
                                                                                             ---------
Loss for the period                                                                          (957,307)
                                                                                             =========

Depreciation     15,238         -           -       5,365         -        -            -       20,603
Other non-cash
expenses/(credit) 5,302         -           -           -         -        -            -        5,302
Exploration
and
evaluation
expenditure
written off      23,018    19,836   1,068,502           -    54,860        -            -    1,166,216
                --------------------------------------------------------------------------------------

Assets
Segment      
assets       8,568,387  1,890,388  16,092,081   35,174,391        -         -  (1,484,818)   60,240,429 
             --------------------------------------------------------------------------------==========

Liabilities
Segment        
liabilities    301,663  1,037,248     217,655      321,589        -         -  (1,484,818)      393,337 
             ---------------------------------------------------------------------------------=========
Acquisitions
of
non-current
assets,
including
capitalised
exploration
and
evaluation      
expenditure    55,867   465,422     329,974             -   54,860         -            -      906,123
               ---------------------------------------------------------------------------------------



                                 
                                             Falkland
            Australia    Europe     Africa    Islands     Iraq Indonesia Eliminations Consolidated
2005                 $         $          $         $        $         $            $            $
Segment
revenue
External             
revenue              -         -          -   424,681        -         -            -      424,681
              ------------------------------------------------------------------------------------
Total                                                                                      
revenue                                                                                    424,681
                                                                                        ==========

Result
Segment      
result       (643,802) (759,647)          - (115,807) (80,564)  (29,342)            -  (1,629,162)
             -------------------------------------------------------------------------------------
Income tax                                                                                       
expense                                                                                          -
                                                                                        ----------
Loss for the                                                                           
period                                                                                 (1,629,162)
                                                                                        ==========

Depreciation    18,372         -          -    39,879        -         -            -       58,251
Other
non-cash
expenses/     
(credit)      (41,706)         -          -         -        -         -            -     (41,706)
Exploration
and
evaluation
expenditure
written off    164,909   130,036          -         -   80,564    29,342            -      404,851
              ------------------------------------------------------------------------------------

Assets
Segment      
assets      7,561,100  1,298,128  16,830,608  2,632,611      -         -  (1,238,517)   27,083,930 
            ----------------------------------------------------------------------------==========

Liabilities
Segment        
liabilities    228,226   912,358    111,687  1,847,251       -         -  (2,789,180)      310,342                  
              ---------------------------------------------------------------------------=========

Acquisitions
of
non-current
assets,
including
capitalised
exploration
and
evaluation      
expenditure     57,429  1,363,998    107,870   465,288   32,520    25,030           -    2,052,135                     
                -----------------------------------------------------------------------------------


Business segments

The consolidated entity operates within one business segment, being the
petroleum and mineral exploration industry. Accordingly, the consolidated
entity's total revenue and loss for the period relate to that business segment.


2. EXPENSES, GAINS/LOSSES AND SIGNIFICANT ITEMS FROM OPERATING ACTIVITIES

                                           Consolidated      Global Petroleum
                                          2006      2005      2006      2005
                                             $         $         $         $

Depreciation of plant and equipment     36,699    68,113    34,159    62,179
Less: depreciation capitalised or
oncharged to controlled entities       (16,096)   (9,862)  (21,462)  (48,239)
                                       --------------------------------------
                                        20,603    58,251    12,697    13,940
                                       --------------------------------------

Operating lease rental expense           3,657    11,657     3,657    11,657
Costs of admission to the
Alternative Investment Market of
the London Stock Exchange                    -   446,724         -   446,724
                                       ======================================



3. INCOME TAX EXPENSE

Numerical reconciliation between tax expense and pre-tax net loss


                                        Consolidated         Global Petroleum
                                      2006       2005        2006        2005
                                         $          $           $           $

Loss before tax                  (957,307) (1,629,162) (2,053,174) (1,359,482)
                                 =============================================
Income tax using the domestic
corporation tax rate of 30%
(2005: 30%)                      (287,192)   (488,748)   (615,952)   (407,844)
Increase/(decrease) in income
tax expense due to:
Exploration and evaluation         
expenditure written-off            349,865     121,455      96,972      82,445
Write-down of investment                 -           -     252,893     183,970
Net loss/(gain) on disposal of           
exploration assets                       -      24,530           -      49,976
Net loss/(gain) on disposal of   
investments                      (328,077)           -           -           -
Non-assessable dividends                 -           -           -   (195,838)
Share of associates' net losses          -      24,741           -           -
Other items                      (193,055)    (48,916)   (186,229)    (51,448)
Tax losses not brought to          
account                            458,459     366,938     452,316     338,739
                                  --------------------------------------------
Income tax expense on pre-tax           
net loss                                 -           -           -           -
                                  ============================================



4. LOSS PER SHARE

                                                       Consolidated
                                                    2006        2005
                                                   Cents       Cents
Basic and diluted loss per share                   (0.56)      (0.99)
                                                 =====================

                                                     2006        2005
                                                        $           $
Loss used in the calculation of basic and       
diluted loss per share                          (957,307) (1,629,162)
                                                ======================

                                                     2006        2005
                                                   Number      Number
Issued ordinary shares at 1 July              169,794,787 131,384,666
Effect of shares issued September 2004                  -  32,025,646
Effect of shares issued December 2004                   -     536,986
Effect of shares issued April 2005                      -      98,630
Effect of shares issued September 2005            389,041           -
Effect of shares issued May 2006                  284,932           -
                                              ------------------------
Weighted average number of ordinary shares
used as the denominator                                                                  
in calculating basic and diluted loss per
share                                         170,468,760 164,045,928
                                              ========================


Dividends

No dividends have been declared, provided for or paid in respect of the years
ended 30 June 2006 or 2005. In respect to the payment of dividends by Global
Petroleum in subsequent reporting periods (if any), no franking credits are
currently available, or are likely to become available in the next 12 months.


5. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES


                                Note          Consolidated          Global Petroleum
                                           2006        2005        2006        2005
                                              $           $           $           $
Cash flows from operating
activities
Loss for the period                    (957,307) (1,629,162) (2,053,174) (1,359,482)
Adjustments for items
classified as investing/
financing activities:
(Gain)/loss on disposal of                     
non-current assets                             -      14,678           -         355
(Gain)/loss on disposal of                     
exploration assets                             -      81,768           -     166,585
(Gain)/loss on disposal of           
investments                          (1,093,589)           -           -           -
Exploration and evaluation            
expenditure written off                1,166,216     404,851     323,241     274,815
Costs of admission to the
Alternative Investment Market
of the London Stock Exchange     2             -     446,724           -     446,724
Adjustments for non-cash items:
Write-down of investment in                    
controlled entity                              -           -     842,975     613,234
Write-off of amounts receivable
from controlled entities                       -           -      21,749           -
                                               
Depreciation                     2        20,603      58,251      12,697      13,940
Net foreign exchange (gain)/            
loss                                    (20,470)     (1,103)         504         986
Share of losses of associates                  -      82,471           -           -
                                       ----------------------------------------------
Operating (loss)/profit before
changes in working capital             (884,547)   (541,522)   (852,008)     157,157
                                       
Changes in operating assets and
liabilities, net of effects of
purchase of controlled entities
during the financial year:
Decrease/(increase) in                   
receivables                              142,904    (94,118)      19,841    (21,618)
Decrease/(increase) in                    
prepayments                               72,710      23,262      19,837     (5,908)
(Decrease)/increase in payables           77,693      50,148      76,756      39,675
(Decrease)/increase in employee            
benefits                                   5,302    (41,706)       5,302    (41,706)
                                       ---------------------------------------------
Net cash from operating                
activities                             (585,938)   (603,936)   (730,272)     127,600
                                       =============================================



Non-cash investing and financing activities


During 2005 the Company issued 1 million shares at $0.37 each for the
acquisition of a controlled entity.



6. SUBSEQUENT EVENTS


Subsequent to the balance sheet date, Repsol Exploracion SA joined the joint
venture operation in Kenya (Blocks L5 and L7). Holdings in the joint venture are
now: Woodside (30% and operator), Dana (30%), Repsol (20%) and the consolidated
entity (20%).







                      This information is provided by RNS
            The company news service from the London Stock Exchange