Quarterly Report

Global Petroleum Ltd
23 October 2006


           Global Petroleum Limited - September 2006 Quarterly Report

Kenya (Global 20%)

On the 24th of August the Company announced that Repsol Exploracion S.A. (a
wholly owned subsidiary of Spanish based company Repsol YPF - an integrated oil
and gas company which produces over 1 million barrels of oil equivalent per day)
had joined the Company's Kenya joint venture which will drill two wells offshore
Kenya beginning in the last quarter of this year - one each in Blocks L-5 and
L-7.

Subsequently (on 29/9/06) it was announced that the rig to drill the wells was
expected to be handed over to Woodside as operator of the Company's Kenya
project in the second half of October and this is still the case. Drilling
operations in Kenya should begin about a month later when the rig has mobilized
to Kenya.

The first of the two wells is scheduled to be on the Pomboo prospect in L-5 and
this will be followed by the Sokwe prospect in L-7.

L-5 and L-7 now contains some 50 prospects and leads, a number of which are each
capable of containing several hundred million to a billion barrels of
recoverable oil. There are Direct Hydrocarbon Indicators (DHI: potential oil and
gas indicator) on some of the leads.

Holdings in the L-5 and L-7 Joint Venture are:

Woodside                   30% (and operator);
Dana                       30%
Repsol                     20%
Global                     20%

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 
and Repsol earn their farm-in equity when these two wells are drilled.

For further information, refer also to Global's releases dated 16/3/06, 4/5/06, 
24/8/06 and 29/9/06 and Global's website: www.globalpetroleum.com.au

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

FOGL has an average 90% holding in 65,000 sqkm of prospective offshore licences
to the East and South of the Falkland Islands. A relinquishment of 14,000 sqkm
was made by FOGL.

In July, FOGL announced its intention to proceed with a Controlled Source
Electro-Magnetic Survey which has the 'potential to indicate which of the
numerous prospects may contain hydrocarbons'. FOGL advised that it expected to
commence this and further 2D seismic surveys before the end of 2006 and to
announce the results 'early next year'.

At the time of announcing its preliminary unaudited results for the year ended
31 March 2006, FOGL's CEO Mr Tim Bushell noted that the Company had 'already
begun preliminary discussions with the other oil and gas companies operating in
the Falkland Islands with a view to forming a consortium to share a rig.'

He said 'discussions will continue with regard to all rig options in order that
FOGL can be in a position to commence drilling in 2008'.

FOGL continues to seek companies to participate with FOGL in the future work
program by way of farming into FOGL's licences.

At a FOGL share price of 81p/share (as at 30/9/06), Global's shareholding is
valued at A$26.1m (15 cents/share).

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

In June 2006, the Company announced that German international oil and gas
company RWE Dea AG had agreed to farmin to Blocks 4 & 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 or any further extension of the ESA, to commit to the
drilling of a well and enter into a Production Sharing Agreement. Global would
retain 30% equity including 3% on behalf of a UK marketing agency that assisted
Global in the farm process. Global is fully carried through the seismic and
drilling programs including the abandonment of the well but excluding drill stem
testing of the well.

RWE planned to undertake seismic studies in the second half of this year at
RWE's cost and had made arrangements with the owners of a seismic vessel in mid
September 2006 to commence a seismic survey in October 2006. On 22 September
2006 the Company was notified that the vessel owners had informed RWE that they
were not able to provide their seismic vessel at the agreed time and that the
vessel would not be available until the first half of calendar year 2007, if at
all. At the end of September RWE was looking for a replacement vessel although,
due to high oil and gas prices and the resultant increase in exploration
activity, such vessels are in short supply. The Company will advise the market
should RWE be successful in securing a replacement vessel.

Ireland Licence Option 03/3 (Global 100%)

The reprocessing and subsequent interpretation of over 200km of 1982 vintage
seismic lines in the Licence Option area has just been completed. The work
confirmed potential exploration targets of Cretaceous and Jurassic age. A
campaign is being undertaken to market the prospects to potential farminees, to
take over operatorship of the project and conduct work to earn significant
equity in the project.

Other Projects

The Company continues to investigate opportunities in the petroleum industry in
other countries, including Iraq.

Yours sincerely,

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.


Appendix 5B


                                                                        Rule 5.3

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                               30 SEPTEMBER 2006


Consolidated statement of cash flows

                                            Current quarter      Year to date

Cash flows related to operating                      $A'000        (3 months)
activities
                                                                       $A'000

1.1   Receipts from product sales and                     -                 -
      related debtors

1.2   Payments for (a) exploration and                 (96)              (96)
      evaluation

      (b) development                                     -                 -
                                                          
      (c) production                                      -                 -
                                                          
      (d) administration                              (449)             (449)

1.3   Dividends received                                  -                 -

1.4   Interest and other items of a                      99                99
      similar nature received

1.5   Interest and other costs of finance                 -                 -
      paid

1.6   Income taxes paid                                   -                 -

1.7   Other - management fees                            10                10

      Net Operating Cash Flows                        (436)             (436)

      Cash flows related to investing
      activities
1.8   Payment for purchases of: (a)                       -                 -
      prospects
                                                          
      (b)equity investments                               -                 -

      (c) other fixed assets                             (2)               (2)

1.9   Proceeds from sale of: (a)prospects               179               179

      (b)equity investments                               -                 -

      (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                          177               177


1.13  Total operating and investing cash
      flows (brought forward)                         (259)             (259)

      Cash flows related to financing
      activities

1.14  Proceeds from issues of shares,                    -                 -
      options, etc.

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)
      Net financing cash flows                           -                 -

      Net increase (decrease) in cash                (259)             (259)
      held

1.20  Cash at beginning of quarter/year              6,991             6,991
      to date

1.21  Exchange rate adjustments to item                  -                 -
      1.20

1.22  Cash at end of quarter                         6,732             6,732

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                      147
       included in item 1.2

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                                          150
4.2  Development                                                           -
     Total                                                               150

Reconciliation of cash

Reconciliation of cash at the end of the   Current quarter   Previous quarter
quarter (as shown in the consolidated
statement of cash flows) to the related             $A'000             $A'000
items in the accounts is as follows.
5.1  Cash on hand and at bank                           55                593
5.2  Deposits at call

                                                     6,677              6,398
5.3  Bank overdraft
                                                         -                  -
5.4  Other (provide details)
                                                         -                  -
     Total: cash at end of quarter (item
     1.22)
                                                     6,732              6,991


Changes in interests in mining tenements

                         Tenement   Nature of interest    Interest  Interest
                         reference                           at     at end of
                                    (note (2))            beginning  quarter
                                                             of
                                                           quarter
6.1  Interests in mining None
     tenements
     relinquished,
     reduced or lapsed



6.2  Interests in mining None
     tenements acquired
     or increased



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  Number quoted Issue price   Amount paid up
                                                 per security  per security
                                                 (see note 3)  (see note 3)
                                                 (cents)       (cents)
7.1   Preference +   None
      securities
      (description)
7.2   Changes during None
      quarter

      (a) Increases
      through issues

      (b) Decreases
      through
      returns of
      capital,
      buy-backs,
      redemptions
7.3   +Ordinary      172,294,787   172,294,787
      securities

7.4   Changes during None
      quarter

      (a) Increases
      through issues

      (b) Decreases
      through
      returns of
      capital,
      buy-backs
7.5   +Convertible   None
      debt
      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                               price
      and conversion A. 8,100,000                              30-06-2007
      factor)                                    25 cents
                     B. 250,000                                31-12-2008
                                                 25 cents
                     C. 10,000,000                             30-06-2008
                                                 25 cents
7.8   Issued during  None
      quarter
7.9   Exercised      None
      during quarter
7.10  Expired during None
      quarter
7.11  Debentures     None

      (totals only)
7.12  Unsecured      None
      notes (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.


Date: 23 October 2006


Print name: Desmond Frederick Olling


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.







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