TIDMGBP
RNS Number : 5624T
Global Petroleum Ltd
26 March 2021
26 March 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the
publication of this announcement via a Regulatory Information
Service ('RIS'), this inside information is now considered to be in
the public domain.
Global Petroleum Limited
("Global" or "the Company")
Interim Financial Report - Half-year ended 31 December 2020
Global Petroleum Limited (AIM: GBP) announces its financial
results for the six months ended 31 December 2020.
Operational
-- One year extension of licence PEL0094 sub-period until
September 2021 agreed with Namibian Ministry of Mines and Energy,
with an amended work commitment for the sub-period - now
completed
-- Work commitments also completed for last phase of PEL0029,
which expired in December 2020, no further extensions being
allowed
-- Updated best estimate of Prospective Resources on PEL0094
announced in January 2021 showing threefold increase to 2,284
million barrels of oil net to Global
-- Farm-out process for PEL0094 commenced in Q1 2021 and currently ongoing
Finances
-- Successful equity raise of GBP1.4 million completed in
September 2020, to fund ongoing exploration work on the Company's
Namibian licences
-- Cash balance at period end US$1,247,787 (30 June 2020: US$932,818)
-- In order to preserve cash, further G&A reduction from
April 2021 including a second 25 per cent cut of UK Directors'
salary/fees, with other savings to be implemented
-- Loss after tax US$3,044,332 (2019: loss US$748,541) after
impairment write off following expiry of PEL0029 amounting to
US$2,409,656 (2019: Nil).
Strategy and Outlook
The Company's strategy remains to seek a farm-in partner for
PEL0094. In parallel with the farm-out process, given the Company's
reducing cash resources and the continued delays regarding its
Italian licence applications, the Board has also decided to explore
all strategic alternatives, in order to maximize shareholder
value.
Copies of the full Half-year Financial Report are also available
from the Company's website: www.globalpetroleum.com.au
For further information please contact:
+44 (0) 20 3 875
Global Petroleum Limited 9255
Peter Hill, Managing Director & CEO
Andrew Draffin, Company Secretary
-----------------
Panmure Gordon (UK) Limited (Nominated Adviser +44 (0) 20 7886
& Sole Broker) 2500
-----------------
Corporate Finance: Nicholas Harland / Ailsa
MacMaster
Corporate Broking: Hugh Rich
-----------------
Tavistock (Financial PR & IR) +44 (0) 20 7920
Simon Hudson / Nick Elwes 3150
-----------------
GLOBAL PETROLEUM LIMITED LETTER TO SHAREHOLDERS
Dear Shareholders,
We are pleased to present to you the Global's Interim Financial
Report for the six months ended 31 December 2020.
During and following the reporting period, the Company has been
focused on completing the work programmes for its two Namibian
licences - PEL0029 and PEL0094. As a result of the further
technical work carried out, an updated estimate of Prospective
Resources was generated for PEL0094, and announced in January
2021.
The updated Prospective Resources (best estimate) net to Global
on an unrisked basis - for the Company's main prospects Marula and
Welwitschia Deep along with a number of new leads - totals 2,284
million barrels of oil. This represented a threefold increase
compared with the previous estimate, and confirmed the Company's
view that the acreage is highly prospective.
In July 2020 agreement was reached with the Ministry of Mines
and Energy for the extension of the PEL0094 licence sub-period,
from September 2020 until September 2021, with a modified work
programme commitment.
In December 2020 PEL0029 expired under its terms, further
extensions not being permitted under Namibian petroleum exploration
law.
Having announced the updated Prospective Resources estimate,
Global then commenced a farm-out process which is currently
underway in respect of PEL0094. Securing a new partner would
facilitate entry into the next sub-period of the licence, which
carries a commitment to shoot a new 3D seismic survey on Block
2011A.
In Italy the Company notes the ongoing delays relating to its
four licence applications offshore in the Adriatic Sea, caused by
various appeals, one of which is now due to be considered by the
European Court later in 2021. In addition, the moratorium on
hydrocarbon exploration activities, including permit applications,
has been extended again - until August 2021.
Corporate
During the reporting period Global strengthened its finances to
provide funding for its ongoing work commitments on its Namibian
licences. In September 2020 the Company successfully raised GBP1.4
million in aggregate before costs via a Placing of 177,000,000
Ordinary Shares at a price of 0.75 pence per share, along with a
Subscription by certain Directors for a further 9,666,667 Ordinary
Shares. As a further component of the Placing and Subscription,
186,666,667 Warrants were issued at an exercise price of 1.5 pence
per share with a duration of 2 years (one Warrant for every new
Ordinary Share). In the event the Warrants are exercised in full,
associated proceeds will be GBP2.8 million, with the result that
the Company will have raised gross proceeds of GBP4.2 million at a
weighted average price of 1.125 pence per share.
In July 2020, Global completed its previously announced
de-listing from the Australian Securities Exchange (ASX), resulting
in the quotation of the Company's Ordinary Shares solely on the
Alternative Investment Market (AIM) in London.
The Company remains committed to reducing its cost base further,
in order to conserve cash resources. Following the announcement in
April 2020 of cuts to G&A costs, including a 25% reduction in
UK Directors' salaries/fees effective from that month, the Board
has agreed upon a further reduction in UK Directors' salaries/fees
by the same amount, effective 1 April 2021, along with other
savings to be implemented in due course.
Board
It was with great regret we announced in February 2021 the
passing of Peter Blakey, major shareholder and Non-executive
Director of the Company. Peter contributed significantly to Global
in his time as a Director over many years, and the Board would like
to acknowledge its gratitude for this.
Financial
The Group recorded a loss after tax of US$3,055,295 for the half
year (2019: loss US$748,541). This includes an impairment charge of
US$2,409,656 million relating to PEL0029 which expired in December
2020. Cash balances at 31 December 2020 were US$1,247,787 (30 June
2020: US$932,818), the increase reflecting in particular the equity
issue completed in the reporting period. The Group has no debt
except that relating to suppliers, which are settled on normal
commercial terms.
Strategy and Outlook
The Company's strategy remains to seek a farm-in partner for
PEL0094. In parallel with the farm-out process, given the Company's
reducing cash resources and the continued delays regarding its
Italian licence applications, the Board has also decided to explore
all strategic alternatives, in order to maximize shareholder
value.
John van der Welle Peter Hill
Chairman Chief Executive Officer
1. OPERATING AND FINANCIAL REVIEW
Namibian Project
Up until the latter part of the reporting period the Namibian
Project consisted of an operated 85 per cent participating interest
in Petroleum Exploration Licence ("PEL") Number 0029 covering
Blocks 1910B and 2010A, and an operated 78 per cent participating
interest in PEL0094 (acquired in 2018) which covers Block 2011A
(see Figure 1). PEL0029 expired on 3 December 2020.
In July 2020 the Company announced updated estimates of
Prospective Resources for PEL0094 after interpretation of the 3D
seismic data survey recently licensed from the Namibian State Oil
Company, NAMCOR. A total of 881 million barrels of unrisked gross
Prospective Resources (Best Estimate) was estimated in PEL0094 in
two prospects, Marula and Welwitschia Deep, of which 687 million
barrels are net to Global. The interpretation of the 3D seismic
data led to increased confidence in the two prospects. The Marula
prospect is a distal pinchout of Cretaceous sandstones onto the
Welwitschia high. Global's interpretation of the 3D seismic data
revealed a significant amplitude anomaly whose down-dip edge
conforms with structure, which resulted in the geological chance of
success of Marula being increased from 8 per cent to 18 per cent.
The Welwitschia Deep prospect was also confirmed by interpretation
of the 3D seismic data and the Albian carbonate reservoir had Best
Estimate unrisked gross Prospective Resources of 671 million
barrels of oil (523 million barrels net to Global). The agreement
with NAMCOR in March 2020 to licence the existing 3D seismic data
on Block 2011A in return for extra equity in the licence also
helped conserve the Company's cash resources.
In July 2020, the Company also announced that the Ministry of
Mines and Energy in Namibia (the "Ministry") had agreed to extend
the PEL0094 licence sub-period from September 2020 to September
2021 and to modify the work commitments. The four-year Initial
Exploration Period had been split into two sub-periods of two years
each, with the first sub-period ending in September 2020. The
amendment agreed by the Ministry gave Global a further year to
fulfill a modified work commitment. The modified work programme
agreed with the Ministry concentrates on the licensing of existing
seismic data and the carrying out of studies specifically designed
to focus on the exciting Marula and Welwitschia Deep prospects.
Should the Company elect to enter the next licence sub-period in
September 2021, the commitment is to shoot a new 2,000 square
kilometre 3D seismic data survey.
In November 2020 the Company purchased historic 2D seismic data
in order to map the source rock from the Wingat-1 and Murombe-1
wells in the south of the Walvis Basin into Global's acreage to the
north. The Company also commissioned studies to examine the
amplitude with offset ("AVO") response of the source rock in the
wells. The Company's interpretation of this data, together with the
commissioned studies, enabled the source rock to be mapped with
even further confidence into Global's acreage.
In December 2020 the Company purchased further historic 2D
seismic data in order to improve interpretation of both its Marula
prospect and also the relatively under-explored eastern part of the
block.
Consequently post the reporting period, in January 2021 the
Company announced an updated estimate of Prospective Resources for
PEL0094. The additional Prospective Resources in the east of
PEL0094 consist of 7 new leads with a total unrisked gross
Prospective Resources (Best Estimate) of 2,048 million barrels of
oil ("barrels"). As previously reported in July 2020, the
pre-existing prospects - Marula and Welwitschia Deep - contain a
total of 881 million barrels, making a new total on the licence of
2,929 million barrels unrisked gross Prospective Resources (Best
Estimate). Regarding the Prospective Resources attributable to
Global, the total unrisked net Prospective Resources (Best
Estimate) now total 2,284 million barrels compared with the
previous number of 687 million barrels net to Global - which
related to Marula and Welwitschia Deep alone. This means that the
total unrisked net Prospective Resources (Best Estimate) - both
gross and net - are over three times as large, due to the new leads
identified. When adjusted for exploration risk, Prospective
Resources have approximately doubled.
The technical work undertaken in late 2020 has more than
fulfilled the firm work commitments on PEL0094. As well as
identification of the significant new leads in the eastern part of
PEL0094, the geological chance of success of Marula was increased
from 18 per cent to 22 per cent and the further work has
significantly reinforced the Company's confidence that the source
rock is present and generating oil in PEL0094.The Company believes
that the latest work has vindicated the Company's view that the
acreage is highly prospective. The updated Prospective Resources
estimates were also timely as the Company commenced the farm-out
process for PEL0094.
With respect to the Company's other Namibian licence, PEL0029
(Blocks 1910B and 2010A), the licence was issued on 3 December 2010
and expired under its terms on 3 December 2020, further extensions
not being permitted under Namibian petroleum exploration law. The
Company completed its outstanding licence work programme
commitments for PEL0029 under budget in the latter part of
2020.
http://www.rns-pdf.londonstockexchange.com/rns/5624T_1-2021-3-25.pdf
Permit Applications Offshore Italy
In August 2013, the Company submitted an application, proposed
work programme and budget to the Italian Ministry of Economic
Development for four exploration areas offshore Italy in the
Southern Adriatic (the "Permit Applications"). The Company's four
Application Blocks are contiguous with the Italian median lines
abutting Croatia, Montenegro and Albania respectively (Figure 2
below).
As previously reported, various local authorities and interest
groups appealed to either the Rome Tribunal or the President of the
Republic against the Environmental Decrees in relation to the
applications of the four areas. Publication of Environmental
Decrees is the final administrative stage before grant of the
Permits. All first instance appeals made to the Rome Tribunal and
to the President of the Republic were subsequently adjudicated in
Global's favour.
However, Puglia, as the Italian region principally interested,
made additional appeals to the Council of State (the highest level
of appeal in Italy) against the judgements of the Rome Tribunal.
The subsequent appeals were heard by the Council of State in
January 2020 and in February 2020 the Council of State issued a
judgement. Essentially, the Council of State suspended the
proceedings before it and referred the matter to the European
Court, requesting the Court to rule whether the four Licence
Applications contravene a relevant EU Directive relating to the
maximum permissible size of individual permits, in particular
having regard to the fact that the four permit applications are
contiguous. The European Court judgement is expected in Q3 2021.
The town of Margherita di Savoia also appealed to the Council of
State against the Rome Tribunal judgments previously made against
it. The Council of State has deferred the Hearing of this appeal
pending the judgement of the European Court with respect to the
Puglia appeal.
In February 2019, the Italian Parliament passed a Bill
suspending all hydrocarbon exploration activities - including
permit applications - for a period of 18 months. Under the proposed
legislation, the Ministries of Economic Development and Environment
were to review all onshore and offshore areas for the stated
purpose of evaluating their suitability for hydrocarbon exploration
and development in the future. In doing so, the suitability of such
activities in the context of social, industrial, urban, water
source an environmental factor were to be evaluated. In offshore
areas, suitability would additionally be assessed having regard to
the impact of such activity on the littoral environment, marine
ecosystems and shipping routes. Following the 18-month evaluation
period, the intention was that a hydrocarbon plan would be
activated, setting out a strategy for future exploration and
development.
Following the expiry of its initial 18 month term, the
moratorium has been extended twice, in each case for a period of 6
months. The latest extension is due to expire in August 2021.
The Southern Adriatic and adjacent areas continue to be the
focus of industry activity. Most notably, in Montenegro, offshore
concessions were awarded in 2016/2017 to Energean and Eni/Novatek
(the latter just 35 kilometres from the nearest of the Permit
Applications).
Eni/Novatek reportedly plan to spend nearly US$100 million on
exploration on these permits, and to date new 3D seismic data has
been acquired. It is further reported that 2 wells were planned in
2020 in the Eni/Novatek Block 4118-5-1, but that these had been
deferred.
Energean acquired 3D seismic data on its blocks in 2019. In
Albania, Shell continues to evaluate its Shpiragu discovery after
the Shpiragu -4 well tested at several thousand barrels of oil per
day in 2019.
http://www.rns-pdf.londonstockexchange.com/rns/5624T_2-2021-3-25.pdf
Placing and Subscription
On 16 September 2020 the Company announced that it had
successfully raised GBP1,327,500 million in aggregate before costs
(the "Placing"), through the Placing of 177,000,000 Ordinary Shares
(the "Placing Shares") at a Placing Price of 0.75 pence per share
and that in addition certain Directors of the Company intended to
subscribe for, in aggregate, 9,666,667 Ordinary Shares (the
"Subscription"), raising GBP72,500. In aggregate, the gross quantum
of funds raised by the Placing and the Subscription were GBP1.4
million.
As a further component of the Placing and the Subscription,
186,666,667 Warrants were issued at an exercise price of 1.5 pence
per share for a period of 2 years (one Warrant for every one new
Ordinary Share). In the event the Warrants are exercised in due
course in full, associated proceeds will be GBP2.8 million, with
the result that the Company will have raised gross proceeds of
GBP4.2 million at a weighted average price of 1.125 pence per
share.
Panmure Gordon UK Limited ("Panmure Gordon") acted as the
Company's sole broker in respect of the Placing. The Company had
announced Panmure Gordon's appointment as broker and NOMAD on 14
July 2020.
Delisting from ASX
Also during the reporting period, the Company announced that it
had delisted from the official list of the Australian Stock
Exchange, effective close of trading on 8 July 2020.
GLOBAL PETROLEUM LIMITED
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE HALF-YEARED 31 DECEMBER 2020
Group
For the six months ended 31 December
2020 2019
Note US$ US$
Employee benefits expense (132,365) (166,860)
Administrative expenses (433,959) (494,003)
Other expenses (120,548) (42,109)
Depreciation and amortisation (1,720) -
Exploration and business development
expenses (27,886) (64,577)
Exploration written off 5 (2,409,656) -
Foreign exchange gain 70,122 952
---------------------- -----------------
Results from operating activities (3,056,012) (766,597)
Finance income 717 18,056
---------------------- -----------------
Net finance income 717 18,056
---------------------- -----------------
Loss before income tax (3,055,295) (748,541)
Tax benefit (expense) - -
---------------------- -----------------
Loss for the period (3,055,295) (748,541)
====================== =================
Earnings per share
From continuing and discontinued operations
Basic loss per share (cents) (1.03) (0.37)
Diluted loss per share (cents) (1.03) (0.37)
The accompanying notes form part of these financial
statements.
GLOBAL PETROLEUM LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 31 DECEMBER 2020
Group
31 December 30 June 2020
2020
Note US$ US$
Assets
Current assets
Cash and cash equivalents 1,247,787 932,818
Trade and other receivables 64,936 27,696
Other assets 103,164 54,450
--------------------- ------------
Total current assets 1,415,887 1,014,964
--------------------- ------------
Non-current assets
Property, plant and equipment 18,316 20,036
Exploration and evaluation assets 5 892,709 2,673,754
--------------------- ------------
Total non-current assets 911,025 2,693,790
--------------------- ------------
Total assets 2,326,912 3,708,754
===================== ============
Liabilities
Current liabilities
Trade and other payables 108,741 124,273
Provisions 152,034 166,309
--------------------- ------------
Total current liabilities 260,775 290,582
--------------------- ------------
Total liabilities 260,775 290,582
--------------------- ------------
Net assets 2,066,137 3,418,172
===================== ============
Equity attributable to owners of the parent
entity
Issued capital 6 40,924,372 39,221,112
Reserves 1,535,305 1,535,305
Accumulated losses (40,393,540) (37,338,245)
--------------------- ------------
Total equity 2,066,137 3,418,172
===================== ============
The accompanying notes form part of these financial
statements.
GLOBAL PETROLEUM LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2020
Issued Share Option Foreign Accumulated Total
Capital Reserve Currency Losses
Translation
Reserve
US$ US$ US$ US$ US$
Consolidated Group
Six months ended 31 December
2019
Balance at 1 July 2019 39,221,112 964,895 570,410 (35,811,796) 4,944,621
Comprehensive income/(loss)
Loss for the period - - - (748,541) (748,541)
Other comprehensive income - - - - -
for the period
--------------- --------- ------------ ----------------- -----------
Total comprehensive income/(loss)
for the period - - - (748,541) (748,541)
--------------- --------- ------------ ----------------- -----------
Transactions with owners, in
their capacity as
owners, and other transfers
Issue of shares - - - - -
--------------- --------- ------------ ----------------- -----------
Total transactions with owners - - - - -
and other transfers
--------------- --------- ------------ ----------------- -----------
Balance at 31 December 2019 39,221,112 964,895 570,410 (36,560,337) 4,196,080
=============== ========= ============ ================= ===========
Six months ended 31 December
2020
Balance at 1 July 2020 39,221,112 964,895 570,410 (37,338,245) 3,418,172
Comprehensive income/(loss)
Loss for the period - - - (3,055,295) (3,055,295)
Other comprehensive income - - - - -
for the period
--------------- --------- ------------ ----------------- -----------
Total comprehensive income/(loss)
for the period - - - (3,055,295) (3,055,295)
--------------- --------- ------------ ----------------- -----------
Transactions with owners, in
their capacity as
owners, and other transfers
Issue of shares 1,801,040 - - - 1,801,040
Transaction costs (97,780) - - - (97,780)
--------------- --------- ------------ ----------------- -----------
Total transactions with owners
and other transfers 1,703,260 - - - 1,703,260
--------------- --------- ------------ ----------------- -----------
Balance at 31 December 2020 40,924,372 964,895 570,410 (40,393,540) 2,066,137
=============== ========= ============ ================= ===========
The accompanying notes form part of these financial
statements.
GLOBAL PETROLEUM LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX
MONTHSED 31 DECEMBER 2020
Group
For the six months ended 31 December
2020 2019
US$ US$
Cash flows from operating activities
Interest received 717 18,056
Payments to suppliers and employees (759,344) (795,153)
GST/VAT refunds received 26,832 12,616
------------------- -----------
Net cash (used in) operating activities (731,795) (764,481)
------------------- -----------
Cash flows from investing activities
Payments for exploration and business development
expenditure (656,496) (251,816)
Payments for plant and equipment - (8,420)
------------------- -----------
Net cash (used in) investing activities (656,496) (260,236)
------------------- -----------
Cash flows from financing activities
Proceeds from issue of shares 1,801,040 -
Payments for capital raising costs (97,780) -
------------------- -----------
Net cash provided by financing activities 1,703,260 -
------------------- -----------
Net increase/(decrease) in cash held 314,969 (1,024,717)
Cash and cash equivalents at 1 July 932,818 2,786,791
------------------- -----------
Cash and cash equivalents at 31 December 1,247,787 1,762,074
=================== ===========
The accompanying notes form part of these financial
statements.
GLOBAL PETROLEUM LIMITED
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL
STATEMENTS
FOR THE SIX MONTHSED 31 DECEMBER 2020
These consolidated financial statements and notes represent
those of Global Petroleum Limited and Controlled Entities (the
"Group").
Note 1 Reporting Entity
Global Petroleum Limited ("Global") is a company domiciled and
incorporated in Australia. It is a company limited by shares and
whose shares are publicly traded on the London Stock Exchange
(AIM). The condensed consolidated interim financial statements of
the Company as at and for the six months ended 31 December 2020 are
comprised of the Company and its controlled entities (together
referred to as the "Group"). The Group is a for-profit entity and
is primarily involved in oil and gas exploration and
development.
The consolidated annual financial statements of the Group as at
and for the year ended 30 June 2020 are available upon request from
the Company's registered office at Level 4 91 William Street,
Melbourne, VIC 3000, Australia or at
www.globalpetroleum.com.au.
Note 2 Basis of Preparation
Statement of compliance
These interim financial statements have been prepared in
accordance with AASB 134 Interim Financial Reporting, the
Corporations Act 2001 and IAS 34 Interim Financial Reporting. They
should be read in conjunction with the Group's last annual
consolidated financial statements as at and for the year ended 30
June 2020 ('last annual financial statements'). They do not include
all of the information required for a complete set of annual
financials statements, however, selected explanatory notes are
included to explain events and transactions that are significant to
an understanding of the changes in the Group's financial position
and performance since the last annual financial statements.
These interim financial statements were authorised for issue by
the Company's Board of Directors on 25 March 2021. The financial
information in this half-year report is presented in United States
dollars ("US$").
Use of judgement and estimates
In preparing these interim financial statements, management has
made adjustments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. Actual results may
differ from these estimates.
Any significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated
financial statements as at and for the year ended 30 June 2020.
Note 3 Summary of Significant Accounting Policies
The accounting policies applied in these financial statements
are the same as those applied to the Group's consolidated financial
statements as at and for the year ended 30 June 2020.
Going Concern Note
The financial statements have been prepared on the going concern
basis of accounting, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement
of liabilities in the ordinary course of business. The use of this
basis of accounting takes into consideration the Group's current
and forecast financing position, which indicate a material
uncertainty due to the need to raise additional funds or reduce
expenditure commitments in order to meet liabilities as they are
expected to fall due in the next twelve months.
The Group has no source of operating revenue and settles its
expenditure obligations from existing cash resources. It generated
a loss of US$3,055,295 (31 December 2019: loss of US$748,541) and
had net cash outflows from the operating activities of US$731,795
(31 December 2019: net cash outflows of US$764,481) for the
half-year ended 31 December 2020. As of that date, the Group had
net assets of US$2,066,137 (30 June 2020: US$3,418,172) and cash
assets of US$1,247,787 (30 June 2020: US$932,818). The Group has no
debt.
The Directors have prepared a cash flow forecast for the next 12
months based on best estimates of future inflows and outflows of
cash, to support the Group's ability to continue as a going
concern. The ability of the Company to continue as a going concern
is principally dependent upon a combination of one or more of the
following factors - management of existing funds; securing further
funds via raising capital from equity markets; concluding a
farm-out arrangement whereby a farm-in party would assume the costs
of meeting certain future exploration and other commitments on the
Company's Namibian licence; and the deferral of licence
commitments.
The raising of additional equity capital is subject to market
conditions and investor demand; securing a farm-out requires
agreement with a suitable third party which the Group has not
achieved to date; and any deferral of licence commitments would
require the consent of the Namibian Ministry of Mines and Energy.
As each of these are not within the Company's control, these
conditions constitute a material uncertainty that may cast
significant doubt on the use of the going concern basis of
accounting. However the Directors have a reasonable expectation
that one or more of these actions will be achieved.
Accordingly the Directors have a reasonable expectation that the
Group will have adequate resources to continue in operational
existence for the foreseeable future, and therefore the Directors
continue to adopt the going concern basis of accounting in
preparing financial statements. The financial statements do not
include any adjustments relating to the classification of assets
including Exploration and Evaluation assets, or the recoverability
of asset carrying values, or the amount and classification of
liabilities, that might result should the Group be unable to
continue as a going concern.
Application of New and Revised Accounting Standards
The Group has adopted all of the new, revised or amending
Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ("AASB") that are mandatory for the
current reporting period.
Any new, revised or amending Accounting Standards or
Interpretations that are not yet mandatory have not been early
adopted.
Note 4 Interests in Subsidiaries
(a) Information about Principal Subsidiaries
The subsidiaries listed below have share capital consisting
solely of ordinary shares or ordinary units which are held directly
by the Group. The proportion of ownership interests held equals the
voting rights held by the Group.
Ownership interest held by the Group
Name of subsidiary Principal place 31 December 30 June 2020 (%)
of business 2020 (%)
Global Petroleum UK Limited United Kingdom 100 100
Global Petroleum Exploration
Limited United Kingdom 100 100
Global Petroleum Namibia British Virgin
Limited Islands 100 100
Note 5 Exploration and
Evaluation Assets
6 months 12 months to 30
to 31 June 2020
December
2020
US$ US$
Balance at beginning
of period 2,673,754 2,339,095
Expenditure capitalised
during the period 628,611 334,659
Expenditure written off
during the period (2,409,656) -
------------------ ------------------
Balance at end of period 892,709 2,673,754
================== ==================
The Group's Exploration and Evaluation Assets at the end of the
reporting period relates solely to its Namibian licence
PEL0094.
During the reporting period, the Group wrote off US$2,409,656
(31 December 2019:Nil) in capitalised expenditure on expiry of the
licence PEL0029 (refer note 10 for further details).
During the reporting period, the Group did not expense any other
exploration and evaluation costs in the statement of profit and
loss, (31 December 2019: Nil). The amount expensed in the
corresponding period was recognised as business development and
therefore it did not meet the criteria for recognition as
exploration and evaluation expenditure.
An amount of US$27,886 (31 December 2019: US$64,577) was
expensed on business development, which relates to the Group's
activities in assessing other opportunities in the oil and gas
sector.
Namibia
In September 2018, Global Petroleum Namibia was awarded licence
PEL0094 and a Petroleum Agreement was signed on 11 September 2018.
The Initial Exploration period runs for four years, and is divided
into two sub periods of two years each; IEP1, and IEP2. IEP1 runs
from September 2018 to September 2020. During IEP1, Global has
undertaken to purchase and reprocess the existing available 3D
seismic data and other 2D data, as well as some additional G &
G studies. In July 2020, agreement was reached with the Ministry of
Mines and Energy ("MME") for the extension of the sub-period ending
in September 2020 for one year to September 2021, with a modified
work commitment. The Company has met all IEP1 commitments at the
date of this report.
Exploration commitments on the Company's exploration tenements
are detailed in note 10.
Note 6 Issued Capital
6 months to 31 December 12 months to
2020 30 June 2020
US$ US$
389,319,594 (30 June 2020: 202,652,927)
fully paid ordinary shares 40,924,372 39,221,112
---------------------------------- -----------------
40,924,372 39,221,112
================================== =================
The Group has authorised share capital amounting to 389,319,594
fully paid ordinary shares.
(a) Ordinary Shares 6 months to 31 December 12 months to 30
2020 June 2020
No. No.
Balance at beginning of period 202,652,927 202,652,927
Shares issued during the 186,666,667 -
period
------------------------ -------------------
Balance at end of period 389,319,594 202,652,927
======================== ===================
On 30 September 2020, the Company completed a placing and
subscription, issuing a total of 186,666,667 fully paid ordinary
shares, raising a total of US$1,703,260, net of capital raising
costs.
(b) Options 6 months to 31 December 12 months to 30 June
2020 2020
Number of Weighted Number of Weighted
Options average exercise Options average exercise
price price
Balance at beginning
of period 8,000,000 AUD$0.0318 8,000,000 AUD$0.0318
Options issued during - - - -
the period
Balance at end of
period 8,000,000 8,000,000
========== ================== ========== ==================
(c) Warrants 6 months to 31 December 12 months to 30 June
2020 2020
Number of Weighted Number of Weighted
Warrants average exercise Warrants average exercise
price price
Balance at beginning - - - -
of period
Warrants issued during 186,666,667 GBP 1.5p - -
the period
Balance at end of 186,666,667 -
period
============ ================== ========== ==================
Note 7 Operating Segments
The following is an analysis of the Group's revenue and results
by reportable segment.
Africa - the Group current holds prospective oil and gas
exploration interests offshore Namibia.
(a) Segment information
(i) Segment performance
Africa Consolidated
2020 2019 2020 2019
For the six months US$ US$ US$ US$
ended 31 December
------------------------------ ------------ ----- ------------ ----------
Segment revenue
External Revenue - - - -
------------ ----- ------------ ----------
Total Revenue - - - -
============ ===== ============ ==========
Segment Result (2,409,656) - (2,409,656) -
------------ ----- ------------ ----------
Segment Result (2,409,656) - (2,409,656) -
============ ===== ============ ==========
Interest Income - - 717 18,056
Net foreign exchange
gain (loss) - - 70,122 952
Corporate and administration
costs - - (716,478) (767,549)
------------ ----- ------------ ----------
Loss for the period
before tax (2,409,656) - (3,055,295) (748,541)
============ ===== ============ ==========
Income tax benefit - - - -
------------ ----- ------------ ----------
Loss for the 6 months
period (2,409,656) (3,055,295) (748,541)
============ ===== ============ ==========
(ii) Segment assets and liabilities
Africa Consolidated
31 December 30 June 2020 31 December 30 June 2020
2020 US$ US$ 2020 US$ US$
-------------------------- ------------ ------------- ------------ -------------
Assets
Segment assets 892,709 2,673,754 892,709 2,673,754
Unallocated assets - - 1,434,203 1,035,000
------------ ------------- ------------ -------------
Consolidated assets 892,709 2,673,754 2,326,912 3,708,754
============ ============= ============ =============
Liabilities
Segment liabilities 35,780 8,584 35,780 8,584
Unallocated liabilities - - 224,995 281,998
------------ ------------- ------------ -------------
Consolidated liabilities 35,780 8,584 260,775 290,582
============ ============= ============ =============
Acquisition of non-current
assets, including capitalized
exploration assets 357,401 334,659 357,401 334,659
======== ======== ======== ========
Note 8 Share-based Payments
No share based payments were made during the 6 month period to
31 December 2020.
Note 9 Financial Instruments
The financial assets and liabilities consist of trade and other
receivables and trade and other payables. The financial assets and
liabilities are carried at amortised cost, the carrying value is
assumed to approximate their fair value.
Note 10 Capital and Joint Venture Commitments
(a) Exploration expenditure commitments
In order to maintain current rights of tenure to exploration
tenements, the Group is required to perform minimum exploration
work to meet the minimum expenditure requirements specified by
various foreign governments where exploration tenements are held.
These obligations are subject to renegotiation when application for
a tenement is made and at other times. These obligations are not
provided for in the financial statements. Financial commitments for
subsequent periods can only be determined at future dates, as the
success or otherwise of exploration programmes determines courses
of action allowed under options available in tenements. The Group's
only exploration expenditure commitments relate to its interest in
joint ventures. Refer to Note 10(b) for further information.
(b) Namibia Licence PEL0094
Global was awarded licence PEL0094 in Namibia in September 2018,
and a Petroleum Agreement was signed on 11 September 2018. The
Initial Exploration Period ("IEP") runs for four years, and is
divided into two sub periods of two years each; IEP1, and IEP2. IEP
1 runs from December 2018 to December 2020. In July 2020, agreement
was reached with the MME for an extension of the sub period ending
September 2020 for one year to September 2021, with a modified work
commitment.
During IEP1, Global has undertaken to licence existing seismic
data and the carry out of studies specifically designed to focus on
the Marula and Welwitschia Deep prospects. The technical work
undertaken in late 2020 has more than fulfilled the firm work
commitments in respect of IEP1. Should the Company elect to enter
the next licence sub-period IEP2 in September 2021, the commitment
is to shoot a new 2,000 square kilometer 3D seismic survey.
Global Petroleum Namibia Limited has an 78 per cent interest in
the PEL0094, however it is responsible for 100 per cent of the
expenditure requirements with its joint venture partners holding a
total of 22 per cent free carried interest.
With respect to PEL0029 (Blocks 1910B and 2010A), the licence
was issued on 3 December 2010 and expired under its terms on 3
December 2020, further extensions not being permitted under
Namibian petroleum exploration law. The Company completed its
outstanding licence work programme commitments for PEL0029 under
budget in the latter part of 2020.
Note 11 Subsequent Events
The Company held its delayed Annual General Meeting on 7 January
2021 where all resolutions were passed. The meeting was delayed due
to the restrictions placed on meeting in the State of Victoria,
Australia, as a result of COVID-19.
On 21 January 2021, the incentive options were issued to
Directors of the Company following subsequent to shareholder
approval which was granted on 7 January 2021 at the Company's
AGM.
The incentive options are exercisable at a price of 1.037 pence
per share, being a 15 per cent premium to the volume weighted
average price of the Company's shares over the five-trading day
period up to and including the date of the AGM, and expire on the
fifth anniversary of the grant date.
Director No. of Incentive
options
Peter Blakey 1,500,000
Andrew Draffin 1,000,000
Garrick Higgins 1,000,000
Peter Hill 6,000,000
Peter Taylor 1,500,000
John van der
Welle 2,000,000
On 26 January 2021 the Company announced an updated estimate of
Prospective Resources for PEL0094 (Block 2011A), offshore Namibia.
On 3 February 2021 the Company announced the passing of long-term
Director and major shareholder Mr Peter Blakey.
GLOBAL PETROLEUM LIMITED DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Global
Petroleum Limited, the Directors of the Company declare that:
1. the condensed consolidated interim financial statements and
notes are in accordance with the Corporations Act 2001 and:
(a) comply with Australian Accounting Standards applicable to
the entity, which, as stated in accounting policy Note 1 to the
financial statements, constitutes compliance with International
Financial Reporting Standards; and
(b) give a true and fair view of the financial position as at 31
December 2020 and of the performance for the six months ended on
that date of the consolidated group.
2. in the Directors' opinion there are reasonable grounds to
believe that the Company will be able to pay its debts as and when
they become due and payable.
Director
Mr Andrew Draffin
Dated this 25 March 2021
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END
IR VELFLFXLFBBZ
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March 26, 2021 03:00 ET (07:00 GMT)
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