Quarterly Report

Global Petroleum Ltd 28 April 2006 Global Petroleum Limited - Quarterly Report Kenya (Global 20%) On the 16th of March, the Company announced that Woodside as operator for the Company's Kenya project had secured the deepwater vessel 'Chikyu' to drill the first well in Kenya Licence L-5. Drilling operations are scheduled to begin in October this year, depending on metocean studies and delivery of the rig to Kenya. The Company holds 20% in two blocks (L-5 and L-7) offshore Kenya together with Woodside (50% and operator) and Dana (30%). L-5 and L-7 now contains some 50 prospects and leads, a number of which are each capable of containing several hundred to a billion barrels of recoverable oil. There are Direct Hydrocarbon Indicators (DHI: potential oil and gas indicator) on some of the leads. In its late 2005 presentation to investors, Woodside noted that its Kenya holdings (L5 & L7) contain 'multiple large structural prospects', which it includes in its group of 'big hit' targets for Woodside. In its 2004 Annual Report, 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 in place. The costs associated with Global's 20% equity in L-5 and L-7 are carried for all activities including the drilling and testing of the first two wells. Woodside earns 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% - www.fogl.com) FOGL has an average 90% holding in 79,000 sqkm of prospective offshore licences to the East and South of the Falkland Islands. FOGL's interim results were released on the 22nd of December 2005 followed by its announcement of the appointment of Tim Bushell as CEO early in January 2006 (refer to Global's release dated the 11th of January 2006). FOGL issued a status report on its project on 17th February 2006. As advised in the last quarterly report the farmout process is underway and being conducted by Stellar Energy Advisors, a firm specialising in brokering farmout deals. The objective is to secure partners with appropriate financial capability and deepwater experience. At a FOGL share price of £1.52/share (as at 25/4/06), Global's shareholding is valued at A$46.8m (27.5 cents/share). Ireland Licence Option 03/3 (Global 100%) Having extended the Licence Option through to 31 December 2006, the Company continues to seek the participation of a farminee to take over operatorship of the project and conduct work to earn significant equity in the project. Meantime, the Company is conducting reprocessing of seismic data over the main prospect which has Jurassic and Lower Cretaceous targets capable of holding a potential 280 million barrels of oil in place. Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 100%) 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 been detected by satellite imagery. The Company has begun discussions with potential farminees in regard to a farmin work programme, and with the Malta Government regarding an extension to the Exploration Study Agreement (beyond 26/6/06) to allow time for new seismic to be recorded, processed and interpreted prior to making a decision sometime in 2007 to drill a well. Meantime the Company is reprocessing key seismic lines of the 1991 Texaco Survey as required by the Exploration Study Agreement with the Malta Government. Other Projects The Company continues to investigate opportunities in the petroleum industry in other countries, including Iraq. John Armstrong Executive 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 35 years experience in the upstream oil and gas industry. The information has been reviewed as to its reliability by Mr Wal Muir BSc Hons (UNSW) MBA (UQ), who is a partner in MBA Petroleum Consultants. MBA provides independent technical advice to Global. Wal Muir has over 27 years experience in the petroleum exploration industry both in Australia and overseas. He is a Distinguished Member of the Petroleum Exploration Society of Australia and a member of the Australian Society of Exploration Geophysicists. Further information Bell Pottinger Corporate & Financial Nick Lambert +44 (0) 20 7861 3232 Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity GLOBAL PETROLEUM LIMITED ABN Quarter ended ('current quarter') ------------------- --------------- 68 064 120 896 31 MARCH 2006 ------------------- --------------- Consolidated statement of cash flows --------- ------------ Cash flows related to operating activities Current Year to date quarter (9 months) $A'000 $A'000 --------- ------------ 1.1 Receipts from product sales and related debtors - - 1.2 Payments for (a) exploration and evaluation (211) (459) (b) development - - (c) production - - (d) administration (309) (1,218) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 97 294 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - management fees 22 191 --------- ------------ Net Operating Cash Flows (401) (1,192) ---------------------- --------- ------------ Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects - - (b)equity investments - - (c) other fixed assets (3) (5) 1.9 Proceeds from sale of: (a)prospects - - (b)equity investments 1,827 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 1,824 1,822 --------- ------------ 1.13 Total operating and investing cash flows 1,423 630 ---------------------- --------- ------------ Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - 125 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) - (1) --------- ------------ Net financing cash flows - 124 --------------------- --------- ------------ Net increase (decrease) in cash held 1,423 754 1.20 Cash at beginning of quarter/year to date 5,491 6,160 1.21 Exchange rate adjustments to item 1.20 - - --------- ------------ 1.22 Cash at end of quarter 6,914 6,914 ------ --------------------- --------- ------------ Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities ------------------- Current quarter $A'000 ------------------- 1.23 Aggregate amount of payments to the parties included in item 1.2 139 ------------------- 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 available Add 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'000 ---------------- 4.1 Exploration and evaluation 210 ---------------- 4.2 Development - ---------------------- ---------------- Total 210 ---------------------- ---------------- Reconciliation of cash ------------------------- --------- --------- Reconciliation of cash at the end of the quarter (as shown Current Previous in the consolidated statement of cash flows) to the quarter quarter related items in the accounts is as follows. $A'000 $A'000 ------------------------- --------- --------- 5.1 Cash on hand and at bank 156 209 --------- --------- 5.2 Deposits at call 6,758 5,282 --------- --------- 5.3 Bank overdraft - - --------- --------- 5.4 Other (provide details) - - ----- ---------------------- --------- --------- Total: cash at end of quarter (item 1.22) 6,914 5,491 ----- ---------------------- --------- --------- Changes in interests in mining tenements -------- ------- --------- -------- Tenement Nature of Interest at Interest at reference interest beginning of end of (note 2) quarter quarter -------- ------- --------- -------- 6.1 Interests in mining tenements relinquished, reduced or lapsed None -------- ------- --------- -------- 6.2 Interests in mining tenements acquired or increased None -------- ------- --------- -------- Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total Number Issue price per Amount paid up number quoted security (see note per security (see 3) (cents) note 3) (cents) ------------- -------- --------- ---------- ----------- 7.1 Preference +securities None (description) ---------- -------- --------- ---------- ----------- 7.2 Changes during None quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions ---------- -------- --------- ---------- ----------- 7.3 +Ordinary 170,294,787 170,294,787 securities -------- --------- ---------- ----------- 7.4 Changes during None quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs ---------- -------- --------- ---------- ----------- 7.5 +Convertible debt None securities (description) -------- --------- ---------- ----------- 7.6 Changes during None quarter (a) Increases through issues (b) Decreases through securities matured, converted ---------- -------- --------- ---------- ----------- 7.7 Options Exercise Expiry date (description and price conversion factor) 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 quarter -------- --------- ---------- ----------- 7.10 Expired during None quarter -------- --------- ---------- ----------- ---------- 7.11 Debentures None (totals only) 7.12 Unsecured notes None (totals only) -------- --------- ---------- ------------ 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. Desmond Frederick Olling Company secretary 28 April 2006 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

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