Interim Results

Global Petroleum Ltd
14 March 2008

14 March 2008



Global Petroleum Ltd
INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007


The directors of Global Petroleum Limited ('the Company' or 'Global') present
their report together with the consolidated financial report for the half-year
ended 31 December 2007 and the review report thereon.



DIRECTORS



The directors of the Company at any time during or since the end of the
half-year are:



Mr Mark Savage
Mr Peter Blakey
Mr Peter Taylor
Mr Peter Dighton (resigned 31 January 2008)
Mr Ian Middlemas


REVIEW OF OPERATIONS

Operating results



During the six months ended 31 December 2007, the consolidated group recorded a
loss of A$6,569,197 (six months ended 31 December 2006: A$9,355,031).  The loss
includes a write-down in relation to the Kenya project of A$7,911,138 and a gain
of A$2,188,606 in relation to the sale of a parcel of Falkland Oil and Gas
shares (see below).



Principal activities



Kenya (Global 20%)



The L5 and L7 Joint Venture comprises:



Woodside Energy (Kenya) Pty Ltd           30% (and operator)
Dana Petroleum (E&P) Ltd                  30%
Repsol Exploracion S.A.                   20%
Global Petroleum                          20%



Under a Farm-in Agreement dated 28 June 2006, Woodside Energy (Kenya) Pty Ltd
agreed to drill one well in each of the Kenyan blocks L-5 and L-7, and to fully
carry Global's interest (20%) in those wells. In January 2007 the first well,
Pomboo, was drilled. The second well is due to be drilled by July 2008 to comply
with the L-7 licence work obligations. However current indications are that it
is unlikely that Woodside will drill that well by the due date. Global has
written to Woodside advising that if the well is not drilled, Woodside will be
in breach of its obligations under the Farm-in Agreement. Global is taking
further legal advice on this issue.



Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 80%)



RWE Dea AG ('RWE'), which has farmed into Global's interest in the Exploration
Study Agreement ('ESA') covering Blocks 4 & 5, has the right to earn up to a
total 70% interest if the parties enter into a PSC with the Malta Government and
RWE commits to the drilling of a well. The ESA has been extended by the Malta
Government until 30 June 2008 and RWE is currently in initial discussions with
potential additional farm in partners for the project.



Should a well be drilled, Global's 30% share (including 3% on behalf of a UK
marketing agency that assisted Global in the farm-in process) of the costs of
such a well would be fully carried by RWE.



Falkland Oil and Gas Limited ('FOGL')



During the half-year FOGL announced it had entered into a farm-out agreement
with a subsidiary of BHP Billiton over FOGL's 2002 and 2004 licences to the
South and East of the Falkland Islands. Under the agreement, BHP Billiton will
acquire a 51% interest, and will take over the operatorship of the licences. A
minimum of two exploration wells will be drilled in the next 3 years and BHP
Billiton pays FOGL US$12.75 million in reimbursement of certain historical
costs.



Global Petroleum sold a parcel of its FOGL shares during the period. As at 31
December 2007, the Company held approximately 13.1% of the issued shares of
FOGL.



SUBSEQUENT EVENTS



There were no significant events occurring after the balance sheet date
requiring disclosure.



CONSOLIDATED INTERIM INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007


                                                                       Note      31 Dec 2007   31 Dec 2006
                                                                                          A$            A$

Other Income                                                             3                 -        30,000

Administration costs                                                               (502,986)     (576,283)
Business development costs                                                         (123,283)             -
Exploration and evaluation expenditure written off                       6       (8,310,549)   (9,004,862)
Results from operating activities                                                (8,936,818)   (9,551,145)

Net financial income                                                     3         2,367,621       196,114

Loss before income tax                                                           (6,569,197)   (9,355,031)

Income tax expense                                                                         -             -
Loss for the period attributable to equity holders of the parent                 (6,569,197)   (9,355,031)


                                                                                       Cents         Cents
Basic loss per share                                                                  (3.77)        (5.41)
Diluted loss per share                                                                (3.77)        (5.41)



CONSOLIDATED INTERIM BALANCE SHEET
AS AT 31 DECEMBER 2007

                                                                 Note        31 Dec 2007    30 June 2007
                                                                                      A$              A$

Current assets
Cash and cash equivalents                                                      7,974,548       6,324,089
Trade and other receivables                                                       26,689           8,228
Other financial assets                                                               600             600
Total current assets                                                           8,001,837       6,332,917

Non-current assets
Investments                                                        5          36,255,947      24,275,749
Exploration and evaluation expenditure                             6           1,071,063       9,247,206
Total non-current assets                                                      37,327,010      33,522,955
TOTAL ASSETS                                                                  45,328,847      39,855,872

Current liabilities
Trade and other payables                                                         198,880         250,680
Total current liabilities                                                        198,880         250,680
TOTAL LIABILITIES                                                                198,880         250,680
NET ASSETS                                                                    45,129,967      39,605,192

Equity
Issued capital                                                     4          35,590,053      35,590,053
Reserves                                                                      34,660,509      22,566,537
Accumulated losses                                                          (25,120,595)    (18,551,398)
TOTAL EQUITY                                                                  45,129,967      39,605,192



CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

                                                                               31 Dec 2007  31 Dec 2006
                                                                                        A$           A$
Cash flows from operating activities
Cash paid to suppliers and employees                                             (700,192)    (664,967)
Interest received                                                                  216,094      205,116
GST and VAT refunds received                                                         6,284            -
Management fees received                                                                 -       25,000
Net cash used in operating activities                                            (477,814)    (434,851)

Cash flows from investing activities
Acquisition of property, plant and equipment                                             -      (1,825)
Proceeds from sale of listed shares                                              2,287,959            -
Exploration expenditure, including overheads capitalized                         (159,512)    (220,961)
Net cash from/(used in) investing activities                                     2,128,447    (222,786)

Cash flows from financing activities
Proceeds from the issue of share capital                                                 -      537,500
Share issue expenses                                                                     -      (4,131)
Net cash from financing activities                                                       -      533,369

Net increase/(decrease) in cash and cash equivalents                             1,650,633    (124,268)
Cash and cash equivalents at 1 July                                              6,324,089    6,991,006
Effect of exchange rate changes on cash and cash equivalents                         (174)            -
Cash and cash equivalents at 31 December                                         7,974,548    6,866,738


CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007


                                                                        Foreign
                                                                       currency
Six months ended                              Share    Fair value   translation    Accumulated          Total
31 December 2007                            capital       reserve       reserve         losses         equity
                                                 A$            A$            A$             A$             A$

Balance at 1 July 2007                   35,590,053    22,513,778        52,759   (18,551,398)     39,605,192
Foreign exchange translation                      -             -        14,422              -         14,422
differences
Change in fair value -                            -    14,268,156             -              -     14,268,156
available-for-sale investments
Change in fair value transferred                  -   (2,188,606)             -              -    (2,188,606)
to profit and loss -
available-for-sale investments
Income and expense recognised                     -    12,079,550        14,422              -     12,093,972
directly in equity
Loss for the period                               -             -             -    (6,569,197)    (6,569,197)
Total recognised income and                       -    12,079,550        14,422    (6,569,197)      5,524,775
expense for the period
Balance at 31 December 2007              35,590,053    34,593,328        67,181   (25,120,595)     45,129,967


Six months ended
31 December 2006

Balance at 1 July 2006                   35,056,684    33,411,563        47,154    (8,668,309)     59,847,092
Change in fair value -
available-for-sale investments
                                                  -   (2,179,860)             -              -    (2,179,860)
Income and expense recognised
directly in equity
                                                  -   (2,179,860)             -              -    (2,179,860)
Loss for the period                               -             -             -    (9,355,031)    (9,355,031)
Total recognised income and
expense for the period
                                                  -   (2,179,860)             -    (9,355,031)   (11,534,891)
Exercise of options                         537,500             -             -              -        537,500
Share issue expenses                        (4,131)             -             -              -        (4,131)
Balance at 31 December 2006              35,590,053    31,231,703        47,154   (18,023,340)     48,845,570




NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS


1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



This general purpose financial report for the interim half-year reporting period
ended 31 December 2007 has been prepared in accordance with Accounting Standard
AASB 134 Interim Financial Reporting and the Corporations Act 2001.



This interim financial report does not include all the notes of the type
normally included in an annual financial report.  Accordingly, this report is to
be read in conjunction with the annual report of Global Petroleum Limited for
the year ended 30 June 2007 and any public announcements made by Global
Petroleum Limited and its controlled entities during the interim reporting
period in accordance with the continuous disclosure requirements of the
Corporations Act 2001.



(a) Basis of preparation of half-year financial report



The interim financial report has been prepared on the basis of historical cost,
except for the revaluation of available-for-sale investments.  Cost is based on
the fair values of the consideration given in exchange for assets.  All amounts
are presented in Australian dollars.



The accounting policies and methods of computation adopted in the preparation of
the half-year financial report are consistent with those adopted and disclosed
in the company's 2007 annual financial report for the year ended 30 June 2007,
other than as detailed below.



In the current year, the Group has adopted all of the new and revised Standards
and Interpretations issued by the Australian Accounting Standards Board (the
AASB) that are relevant to its operations and effective for annual reporting
periods beginning on or after 1 July 2007.  The adoption of these new and
revised standards has not resulted in any significant changes to the Group's
accounting policies or to the amounts reported for the current or prior periods.



(b) Estimates



The preparation of the interim financial report requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates.



Except as described below, in preparing this consolidated interim financial
report, the significant judgements made by management in applying the
consolidated entity's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated financial
report as at and for the year ended 30 June 2007.



During the six months ended 31 December 2007 and 2006 management reassessed its
estimates in respect of the carrying value of Kenya and Ireland exploration
expenditure based on the exploration activities during the half-year and the
status of the projects at those dates.  Expenditure written-off in 2007 relates
primarily to the balance of the Kenya project.  Expenditure written-off in 2006
included a write-down in relation to the Kenya project of A$8,077,329 following
the unsuccessful drilling of the Pomboo No. 1 well, and the write-off of
expenditure in relation to Ireland of A$773,629 following expiry of the licence
option.  The remaining amounts written-off (A$153,904) related to other
projects.



2.  SEGMENT INFORMATION

Geographical segments

The consolidated entity's geographical segments are as follows:

                                                                 Falkland
31 Dec 2007                Australia      Europe        Africa    Islands     Iraq   Eliminations   Consolidated

                                  A$          A$            A$         A$       A$             A$             A$
Segment revenue
External revenue                   -           -             -          -        -              -              -
Total revenue                                                                                                  -

Result
Segment result             1,799,347    (36,404)   (8,332,230)          -        -              -    (6,569,197)
Income tax expense                                                                                             -
Loss for the period                                                                                  (6,569,197)

                                                                Falkland
31 Dec 2006                Australia     Europe        Africa    Islands      Iraq   Eliminations   Consolidated

                                  A$         A$            A$         A$        A$             A$             A$
Segment revenue
External revenue                   -          -             -          -         -              -              -
Total revenue                                                                                                  -

Result
Segment result             (323,678)  (882,677)   (8,128,688)      (359)  (19,629)              -    (9,355,031)
Income tax expense                                                                                             -
Loss for the period                                                                                  (9,355,031)



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 relates to that business segment.



3.  PROFIT/(LOSS) FROM OPERATIONS


(a) Other Income

                                                          31 Dec 07      31 Dec 06
                                                                 A$             A$
Rendering of services                                             -         30,000
                                                                  -         30,000



 (b) Financial income/(expenses)


Interest income                                             216,094        204,712
Gain on disposal of available-for-sale investments        2,188,606              -
Net foreign exchange gain/(loss)                           (37,079)        (8,598)
                                                          2,367,621        196,114



4.  EQUITY SECURITIES ISSUED



Movements in ordinary share capital during the six month periods ended 31
December 2006 and 2007 were as follows:-


Date             Details                                      Number of Shares    Issue Price                      A$
                                                                                           A$

1 Jul 06         Opening Balance                                   172,294,787                             35,056,684
                 Allotment upon exercise of options                  2,150,000           0.25                 537,500
                 Share issue expenses                                                                         (4,131)
31 Dec 06        Closing Balance                                   174,444,787                             35,590,053



1 Jul 07       Opening Balance                                     174,444,787                             35,590,053

31 Dec 07      Closing Balance                                     174,444,787                             35,590,053



5. INVESTMENTS
                                                                                     31 Dec 2007    30 June 2007
                                                                                              A$              A$

Listed equity securities available-for-sale - at fair value                           36,255,947      24,275,749



Investments in listed equity securities available-for-sale have been recognised
at fair value (period-end market value) and represent an investment in Falkland
Oil and Gas Limited ('FOGL').


The consolidated entity disposed of part of its investment in FOGL during the
financial period for net proceeds of A$2,287,959 and recorded a net gain on
disposal of A$2,188,606.



6.  EXPLORATION AND EVALUATION EXPENDITURE


                                                                                     31 Dec 2007     31 Dec 2006
                                                                                              A$              A$
Cost
Balance at 1 July                                                                      9,247,206      17,775,089
Foreign currency movement                                                               (25,106)               -
Expenditure incurred                                                                     159,512         408,264
Expenditure written-off                                                              (8,310,549)     (9,004,862)
Balance at 31 December                                                                 1,071,063       9,178,491



Expenditure written-off during the 2007 half-year primarily relates to the
balance of the Kenya project.



Expenditure written-off during the 2006 half-year included a write-down in
relation to the Kenya project of A$8,077,329 following the unsuccessful drilling
of the Pomboo No. 1 well, and the write-off of expenditure in relation to
Ireland of A$773,629 following expiry of the licence option.  The remaining
amounts written-off (A$153,904) related to other projects.



The recoverability of the carrying amounts of exploration and evaluation assets
is dependent on the successful development and commercial exploitation or sale
of the respective area of interest.



7.  RELATED PARTIES



Remuneration arrangements with related parties continue to be in place.  For
details on these arrangements, refer to the 30 June 2007 annual financial
report.



8.  CONTINGENCIES



There have been no changes in contingent liabilities since 30 June 2007.



9.  SUBSEQUENT EVENTS



There were no significant events occurring after the balance sheet date
requiring disclosure.




Enquiries


Global Petroleum Limited                                         [phone]
Mark Savage, Chairman

Blue Oar Securities Plc (Nominated Adviser and Broker)             020 7418 4400
Rhod Cruwys
Tanya Israni






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