Interim Results

Global Petroleum Ltd
16 March 2007


16 March 2007


Global Petroleum Ltd


       INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2006


The directors of Global Petroleum Limited ('the Company' or 'Global') present
their report together with the condensed consolidated financial report for the
half-year ended 31 December 2006 and the review report thereon.


DIRECTORS


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


Dr John Armstrong (Executive Chairman) - appointed 31 May 2002

Mr Peter Blakey - appointed 4 October 2001

Mr Peter Dighton - appointed 23 December 2003

Mr Mark Savage - appointed 23 November 1999

Mr Peter Taylor - appointed 4 October 2001



REVIEW OF OPERATIONS


Operating results


During the December 2006 half-year, the group recorded a loss of $9,355,031
(December 2005 half-year: $338,677). The loss includes a write-down in relation
to the Kenya project of $8,077,329 following the unsuccessful drilling of the
Pomboo No. 1 well (refer below).


Principal activities


As announced in the Company's last quarterly report, the principal activities in
regard to the Company's projects were as follows.


Kenya (Global 20%)


The Company began drilling its first well in the December 2006 quarter. The
well, Pomboo No. 1 in Licence L-5, Kenya, spudded on 2 December 2006. The
Company's weekly report dated 28 December 2006 reported that the depth reached
was 2,944 metres (751 metres below the seabed).


The costs associated with Global's 20% in respect of this well are fully carried
so no costs were incurred by the Company. The other joint venture parties are:


Woodside Energy 30% (and operator)

Dana Petroleum 30% *

Repsol Exploracion 20%*


Since the end of the half-year, on 23 January 2007, Woodside as operator of the
Company's Kenya Joint Venture announced that Pomboo No. 1 had reached a total
depth of 4,887 metres and would be plugged and abandoned. The well encountered
'in excess of 200 metres of moderate to good quality reservoir sandstones' in
the primary target zone from 4,685m to the total depth but without oil or gas.


It had been expected that the drilling rig would move to Licence L-7 immediately
following Pomboo to drill Sokwe South No. 1. However at a meeting of the Joint
Venture on 24 January 2007 it was decided not to drill Sokwe South No. 1 in this
drilling campaign. The voting equity of Woodside and Repsol as farminees was
sufficient to make this decision binding on the Joint Venture. The Company's
announcement dated 25 January 2007 advised shareholders of this outcome.


While there are numerous prospects and leads in our Kenya Licences L-5 and L-7,
and Pomboo has established the presence of reservoirs and seals, the well lacked
oil and gas shows. The JV has decided that the next phase of exploration should
be determined after a comprehensive technical assessment of the relevance and
implications of the new information obtained from Pomboo. This work is expected
to occur over the next three to six months.


*Footnote: Another transaction is pending which, subject to the necessary
permissions, will result in the transfer of a 3% interest in L-5 and L-7 from
Dana to Repsol, resulting in Repsol having a 23% interest in L-5 and L-7 and
Dana a 27% interest.



Not drilling Sokwe South No. 1 following Pomboo was a disappointing result when
shareholders were expecting the Company to be participating in two wells in
Kenya in this drilling programme.


However, when the Woodside review is completed in three to six months' time, the
Joint Venture will agree the forward plan for L-5 and L-7 - subject to the
acceptability of the plan to the Kenya Government.


The costs associated with Global's 20% in L-5 and L-7 are carried for all
activities through the drilling of one well in each Licence. Woodside is
contractually obliged to drill these two wells - one each in L-5 and L-7. Only
one well, Pomboo in L-5, has so far been drilled.


Refer also to Woodside's release 'Pomboo-1 Drilling Result' (23 January 2007)
and other Global releases in late 2006 and on 25 January 2007.


The carrying value of the Company's Kenya exploration expenditure has been
written-down at 31 December 2006 by $8,077,329 to reflect the unsuccessful
drilling of the first of the two carried wells.


Falkland Oil and Gas Limited ('FOGL') (Global shareholding 14.0%)


In its six-monthly report for the period ended 30 September 2006 (dated 21
December 2006) FOGL noted that it had raised £8 million via a convertible loan
note, that an independent technical report by TRACS International assessed that
in the 10 prospects on which they focussed that the risked prospective resource
potential was 863 million barrels net to FOGL, and that the forward program
involved a Controlled Source Electro-Magnetic Survey (CSEM), further 2D seismic
and seafloor coring surveys targeting the Company's top 20 prospects. FOGL's
goal was stated to be 'secure a rig during 2007 and commence drilling in 2008'.


On 5 February 2007, FOGL announced an update on the exploration programme. The
CSEM survey over prospects within the 2004 licences commenced on 3 February 2007
and will continue for the following three months to acquire a series of CSEM
lines over the top 20 prospects and leads. The 10,000km 2D seismic programme
commenced on 19 December 2006 and over 3,000km of data have been acquired to
date. The 2D survey is expected to take approximately five months to complete.
The processing and interpretation of both the CSEM and 2D surveys is expected to
take up to six months to complete. FOGL noted that the work programme was
'progressing well' and that the results of these surveys will provide better
definition of the top 20 prospects and leads and enable them to identify the
best prospects and leads for drilling.


At a FOGL share price of 90 pence per share (as at 9 March 2007), Global's
shareholding is valued at A$28.8 million (16 cents per Global share). The
carrying value of Global's shareholding recorded in the financial statements at
31 December 2006 was A$33.0 million (based on the FOGL share price at 31
December 2006 of 103.5 pence per share).


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


During the half-year, RWE obtained the services of seismic company Fugro who
recorded 852km of new 2D seismic lines in November 2006. This work, together
with reprocessing of other seismic surveys in the Study Area, and the
acquisition of new magnetic and gravity data has satisfied the Malta
Government's Study Agreement work commitment.


The Malta Government has extended the Study Agreement to 31 March 2007 to enable
RWE as operator of the project to interpret the new and reprocessed information.


When this work is complete, the Joint Venture (RWE and Global) will make a
decision as to whether to enter a Production Sharing Contract with the Malta
Government which is likely to involve a well commitment. Global's 30% share
(including 3% of 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.


At the Company's AGM on 17 November 2006 shareholders approved an extension of
time to 30 June 2008 for the issue to the related party vendors of Astral
Petroleum Limited their share of an additional four million fully paid ordinary
shares in the Company if the Company achieves an unconditional commitment by RWE
to drill a well in respect of the Malta Exploration Study Agreement.

Ireland Licence Option 03/3 (Global 100%)


The Company's campaign to introduce a new company to this project has not been
successful. Discussions with the Petroleum Affairs Division of the Ireland
Department of Communications, Marine and Natural Resources indicated that no
further extensions to the option deadline of 31 December 2006 would be available
and that the only route available to Global was to enter a licence with a well
commitment. As a farminee was not found to share the risk and the cost of such
well by the end of calendar year 2006, the Licence Option has now terminated.
The carrying value of the Company's exploration expenditure in relation to
Ireland of $773,629 was written-off at 31 December 2006.


Outlook


When available, the work program timing implications of the planned review of
Kenya L-5 and L-7 together with the results of the ongoing work by FOGL and the
decision by RWE, will be considered by Directors in regard to the most
appropriate way forward for the Company.



SUBSEQUENT EVENTS


On 5 March 2007, the Company announced that Dr John Armstrong will step down as
Executive Chairman and retire from the board effective 2 April 2007. Mr Ian
Middlemas will become a director on that date and Mr Mark Savage will become
Chairman. Mr Middlemas is a chartered accountant with over 20 years' experience
and is a director of a number of publicly listed companies.





J D Armstrong

Director

Brisbane

14 March 2007









                CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2006



                                            Note    31 Dec 2006    31 Dec 2005
                                                         $              $
Revenue
Rendering of services                          4        30,000          62,111
Other income
Gains on disposal - available-for-sale
investments                                    6             -       1,093,589

Expenses
Salaries and employee benefits expense                (225,952)       (229,045)
Consulting and professional fees                      (193,533)       (315,772)
Shareholder costs                                      (82,206)        (60,744)
Occupancy costs                                        (14,372)        (18,673)
Depreciation expense                                    (8,623)        (11,530)
Administrative and other expenses                      (51,597)        (66,357)
Exploration and evaluation expenditure
written off                                    7    (9,004,862)       (944,482)
                                                        --------        --------
Results from operating activities                   (9,551,145)       (490,903)
                                                        --------        --------

Financial income - interest income                     204,712         150,782
Net foreign exchange gain / (loss)                      (8,598)          1,444
                                                        --------        --------
Net financing income                                   196,114         152,226
                                                        --------        --------

Loss before tax                                     (9,355,031)       (338,677)

Income tax expense                                           -               -
                                                        --------        --------
Loss for the period attributable to equity
holders of the parent                          4    (9,355,031)       (338,677)
                                                        --------        --------

                                                           Cents           Cents
Basic and diluted loss per share                         (5.41)          (0.20)






                  CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

                             AS AT 31 DECEMBER 2006



                                         Note    31 Dec 2006     30 June 2006
                                                      $                $

Current assets
Cash and cash equivalents                          6,866,738         6,991,006
Trade and other receivables                           69,467           258,166
Other financial assets                                   600               600
                                                     ---------         ---------
Total current assets                               6,936,805         7,249,772
                                                     ---------         ---------

Non-current assets
Investments                                 6     32,993,674        35,173,534
Property, plant and equipment                         27,065            42,034
Exploration and evaluation expenditure      7      9,178,491        17,775,089
                                                     ---------         ---------
Total non-current assets                          42,199,230        52,990,657
                                                     ---------         ---------
TOTAL ASSETS                                      49,136,035        60,240,429
                                                     ---------         ---------

Current liabilities
Trade and other payables                             269,387           380,940
Employee benefits                                     21,078            12,397
                                                     ---------         ---------
Total current liabilities                            290,465           393,337
                                                     ---------         ---------
TOTAL LIABILITIES                                    290,465           393,337
                                                     ---------         ---------
NET ASSETS                                        48,845,570        59,847,092
                                                     ---------         ---------

Equity
Issued capital                              8     35,590,053        35,056,684
Reserves                                          31,278,857        33,458,717
Accumulated losses                               (18,023,340)       (8,668,309)
                                                     ---------         ---------
TOTAL EQUITY                                      48,845,570        59,847,092
                                                     ---------         ---------






         CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2006



Six months     Note       Share    Fair value      Foreign   Accumulated         Total
ended 31                capital       reserve     currency        losses        equity
December 2006                                  translation           
                                                   reserve
                                                
                                                    
                               $             $            $             $              $

Balance at 1
July 2006             35,056,684    33,411,563       47,154    (8,668,309)    59,847,092
                        --------      --------     --------      --------       --------
Loss for the period            -             -            -    (9,355,031)    (9,355,031)                 
Change in fair value -
available-for-sale
investments                    -    (2,179,860)           -             -     (2,179,860)
                        --------      --------     --------      --------       --------
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
                        --------      --------     --------      --------       --------



Six months ended 
31 December 2005

Balance at 1 July
2005                  34,436,135             -    48,455       (7,711,002)     26,773,588
Impact of change in
accounting policy
relating to adoption 
of AASB132 and
AASB 139          3             -    39,188,153          -             -       39,188,153
                         --------      --------  --------      --------      --------
Balance at 1
July 2005 -
restated               34,436,135    39,188,153    48,455    (7,711,002)       65,961,741
                         --------      --------  --------      --------      --------
Loss for the period             -             -         -      (338,677)        (338,677)
Change in fair value -
available-for-
sale investments                -     1,041,766         -             -         1,041,766
Fair value - available
-for-sale investments
transferred to profit/loss on
disposal                        -    (5,352,938)        -             -       (5,352,938)
                         --------      --------  --------      --------      --------
Total recognised
income and expense 
for the period                  -    (4,311,172)        -      (338,677)      (4,649,849)
Exercise of options       125,000             -         -             -          125,000
Share issue expenses       (1,321)            -         -             -           (1,321)
                         --------      --------  --------      --------      --------
Balance at 31
December 2005          34,559,814    34,876,981    48,455    (8,049,679)      61,435,571
                         --------      --------  --------      --------      --------






             CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2006



                                                   31 Dec 2006     31 Dec 2005
                                                        $               $
Cash flows from operating activities
Cash paid to suppliers and employees                  (664,967)       (700,876)
Interest received                                      205,116         200,652
Management fees received                                25,000         168,627
                                                        --------        --------
Net cash from operating activities                    (434,851)       (331,597)
                                                        --------        --------

Cash flows from investing activities
Acquisition of property, plant and equipment            (1,825)         (2,497)
Exploration expenditure, including overheads
capitalised                                           (220,961)       (461,474)
                                                        --------        --------
Net cash from investing activities                    (222,786)       (463,971)
                                                        --------        --------

Cash flows from financing activities
Proceeds from the issue of share capital               537,500         125,000
Share issue expenses                                    (4,131)         (1,321)
                                                                        --------
                                                        --------        --------
Net cash from financing activities                     533,369         123,679
                                                        --------        --------

Net decrease in cash and cash equivalents             (124,268)       (671,889)
Cash and cash equivalents at 1 July                  6,991,006       6,159,540
                                                        --------        --------
Cash and cash equivalents at 31 December             6,866,738       5,487,651
                                                        --------        --------






        NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS


1. REPORTING ENTITY


Global Petroleum Limited (the 'Company') is a company domiciled in Australia.
The consolidated interim financial report of the Company as at and for the six
months ended 31 December 2006 comprises the Company and its subsidiaries
(together referred to as the 'consolidated entity') and the consolidated
entity's interests in associates and jointly controlled entities.


The consolidated annual financial report of the consolidated entity as at and
for the year ended 30 June 2006 is available upon request from the Company's
registered office at Level 9, 46 Edward Street, Brisbane QLD 4000 or at
www.globalpetroleum.com.au.



2. STATEMENT OF COMPLIANCE


The consolidated interim financial report is a general purpose financial report
which has been prepared in accordance with AASB 134: Interim Financial Reporting
and the Corporations Act 2001. International Financial Reporting Standards
('IFRS') form the basis of AASBs adopted by the AASB, and for the purpose of
this report are called Australian equivalents to IFRS ('AIFRS'). The
consolidated interim financial report also complies with IFRS and
interpretations adopted by the International Accounting Standards Board.


The consolidated interim financial report does not include all of the
information required for a full annual financial report, and should be read in
conjunction with the consolidated annual financial report of the consolidated
entity as at and for the year ended 30 June 2006.


This consolidated interim financial report was approved by the Board of
Directors on 14 March 2007.



3. SIGNIFICANT ACCOUNTING POLICIES


Except as described below, the accounting policies applied by the consolidated
entity in this consolidated interim financial report are the same as those
applied by the consolidated entity in its consolidated financial report as at
and for the year ended 30 June 2006.


In the prior financial year the consolidated entity adopted AASB 132: Financial
Instruments: Disclosure and Presentation and AASB 139: Financial Instruments:
Recognition and Measurement in accordance with the transitional rules of AASB 1.
This change has been accounted for by adjusting the opening balance of reserves
at 1 July 2005, as disclosed in the statement of changes in equity.


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 2006.


During the six months ended 31 December 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 31 December 2006 (see note 7).



4. SEGMENT REPORTING


Segment information is presented in the condensed consolidated interim financial
statements in respect of the consolidated entity's geographical segments, which
are the primary basis of segment reporting. The geographical segment reporting
format reflects the consolidated entity's management and internal reporting
structure.


Inter-segment pricing is determined on an arm's length basis. Segment results
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:

-------------    --------    -------      -------  --------    ------     ---------     ---------
31 Dec 2006     Australia     Europe       Africa  Falkland      Iraq  Eliminations  Consolidated
                                                   Islands                                       
                        $         $            $        $            $            $            $
 -------------   --------    -------      -------  --------    ------     ---------     ---------
Segment revenue
External revenue   30,000          -            -         -         -             -        30,000
                 --------    -------      -------  --------    ------     ---------     ---------
Total revenue                                                                            30,000
                                                                                        ---------

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)
                                                                                        ---------

-------------    --------    -------    -------    --------    ------     ---------     ---------
31 Dec 2005     Australia     Europe     Africa    Falkland      Iraq  Eliminations  Consolidated
                        $          $          $     Islands         $             $             $
                                                          $
 -------------   --------    -------    -------    --------    ------     ---------     ---------
Segment revenue
External revenue       -          -          -      62,111         -             -        62,111
                 --------    -------    -------    --------    ------     ---------     ---------
Total revenue                                                                            62,111
                                                                                        ---------

Result
Segment result  (280,620)  (203,531)  (943,158)  1,100,182   (11,550)            -      (338,677)
                 --------    -------    -------    --------    ------     ---------     ---------
Income tax expense                                                                            -
                                                                                        ---------
Loss for the period
                                                                                        (338,677)
                                                                                        ---------


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.



5. INTERESTS IN JOINT VENTURE OPERATIONS


The consolidated entity holds the following interests in joint ventures, whose
principal activities are in petroleum exploration.

                                            Joint venture % interest held
                                                    Consolidated
Joint venture        Principal activity      31 Dec 2006    31 Dec 2005
                                                       %              %
Kenya                Petroleum exploration          20.0           20.0
TM Services - Global
(Iraq)               Petroleum exploration          50.0           50.0
Malta                Petroleum exploration          80.0              -





6. INVESTMENTS
                                                   31 Dec 2006    30 June 2006
                                                        $               $

Listed equity securities available-for-sale - at
fair value                                          32,993,674      35,173,534
                                                     --------        --------



Investments in listed equity securities available-for-sale represent an
investment in Falkland Oil and Gas Limited ('FOGL').


The consolidated entity disposed of its investment in Falkland Gold and Minerals
Limited ('FGML') in December 2005 for net proceeds of $1,827,416 and recorded a
net gain on disposal of $1,093,589.



7. EXPLORATION AND EVALUATION EXPENDITURE

                                                                   $
Cost
Balance at 1 July 2006                                              17,775,089
Expenditure incurred                                                   408,264
Expenditure written-off                                             (9,004,862)
                                                                        --------
Balance at 31 December 2006                                          9,178,491
                                                                        --------


Expenditure written-off includes a write-down in relation to the Kenya project
of $8,077,329 following the unsuccessful drilling of the Pomboo No. 1 well, and
the write-off of expenditure in relation to Ireland of $773,629 following expiry
of the licence option. The remaining amounts written-off ($153,904) relate 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.



8. CAPITAL AND RESERVES


Share capital


Movements in shares on issue during the period were as follows:

                                          Number of    Issue price       
                                       ordinary shares      $            $

Balance at 1 July 2006                   172,294,787                  35,056,684
Allotment upon exercise of options         2,150,000        0.25         537,500
Share issue expenses                                                     (4,131)
                                           -----------    --------      --------
Balance at 31 December 2006 - fully      174,444,787                  35,590,053
paid                                       -----------    --------      --------



9. CONTINGENCIES


There were no changes in contingent liabilities since 30 June 2006.






10. RELATED PARTIES


Arrangements with related parties continue to be in place. For details on these
arrangements, refer to the 30 June 2006 annual financial report. Details
regarding changes in related party share option holdings and share holdings are
set out below.


Options and rights over equity instruments


The movement during the interim period in the number of options over ordinary
shares in Global Petroleum Limited held, directly, indirectly or beneficially,
by each key management person, including their related parties, is as follows:


                      Held at    Granted as     Exercised       Held at      Vested and
                  1 July 2006   compensation                  31 Dec 2006    exercisable
                                                                            at 31 Dec 2006
Directors
Dr J Armstrong    18,000,000             -     (2,000,000)    16,000,000      6,000,000
Mr P Dighton         250,000             -        (50,000)       200,000        200,000



Movements in shares


The movement during the interim period in the number of ordinary shares in
Global Petroleum Limited held, directly, indirectly or beneficially, by each key
management person, including their related parties, is as follows:


                      Held at   Acquisitions     Received -     Disposals       Held at
                  1 July 2006                   exercise of                   31 Dec 2006
                                                  options
                                                              
Directors
Dr J Armstrong       266,667             -      2,000,000      (1,236,667)     1,030,000
Mr P Blakey       28,924,318             -              -      (1,500,000)    27,424,318
Mr P Taylor       28,924,318             -              -      (1,500,000)    27,424,318
Mr P Dighton               -             -         50,000         (50,000)             -
Mr M Savage                -             -              -               -              -
Executives
Mr D Olling           50,000             -              -               -         50,000




11. SUBSEQUENT EVENTS


On 5 March 2007, the Company announced that Dr John Armstrong will step down as
Executive Chairman and retire from the board effective 2 April 2007. Mr Ian
Middlemas will become a director on that date and Mr Mark Savage will become
Chairman. Mr Middlemas is a chartered accountant with over 20 years' experience
and is a director of a number of publicly listed companies.






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