TIDMGBP
RNS Number : 6653H
Global Petroleum Ltd
14 March 2018
14 March 2018
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 2017
Global Petroleum Limited (AIM: GBP, ASX: GBP) announces its
half-year financial results for the six months to 31 December
2017.
Copies of the full Half-year Financial Report are also available
from the ASX website at www.asx.com and from the Company's web site
at www.globalpetroleum.com.au.
For further information please contact:
Global Petroleum Limited
Peter Hill, Managing Director +44 (0) 20 7495
& CEO 6802
Cantor Fitzgerald Europe (Nominated
Adviser & Joint Broker)
+44 (0) 20 7894
David Porter / Nick Tulloch 7000
GMP FirstEnergy Capital LLP (Joint
Broker)
+44 (0) 20 7448
Hugh Sanderson 0200
Tavistock (Financial PR & IR)
+44 (0) 20 7920
Simon Hudson / Barney Hayward 3150
The Directors of Global Petroleum Limited present their report
together with the condensed consolidated interim financial
statements of the Group comprising of Global Petroleum Limited (the
"Company" or "Global" or "Parent") and the entities it controlled
for the half year ended 31 December 2017 ("Consolidated Entity" or
"Group").
Dear Shareholders
We are pleased to present to you the Global Interim Financial
Report for the half year ended 31 December 2017.
A number of objectives were achieved during the reporting period
with a particular focus on the Company's Namibian Licence which
covers Blocks 1910B & 2010A, in the offshore Walvis Basin.
An agreement was reached with the Namibian Ministry of Mines
& Energy ("MME") whereby an extension was granted for the First
Renewal Exploration Period (Phase 2) of the Company's exploration
licence ("the Licence"). The extension was for a period of 12
months to December 2018. At the same time, the MME also agreed
entry by Global and its partners into the Second Renewal Period
(Phase 3), effective from December 2018 for a period of 2
years.
2D seismic data was acquired over the Company's Namibian acreage
during June and July 2017. Processing and interpretation of the
data was finalised and a Competent Persons Report ("CPR") was
commissioned from AGR TRACS, which was completed post the reporting
period end. The CPR confirmed a high level of prospectivity in the
Blocks held by the Company including the calculation of Prospective
Resources. Further details of the CPR and the calculated
Prospective Resources are detailed in the Company's announcement of
15 January 2018.
Subsequent to the publication of the CPR, the Company announced
it would be conducting a structured farm-out process in which it
would be advised by Stellar Energy Advisors.
In Italy, the Company announced in October 2017 the publication
by the Italian authorities of the remaining two Environmental
Decrees relating to its four offshore applications in the Southern
Adriatic. The applications in question are designated d 80 F.R-GP
and d 81 F.R-GP and since the publication of the Decrees a number
of appeals by various interested parties have been notified to the
Company. These appeals will be defended by the Company in a similar
fashion to those relating to the previous two Decrees, which were
originally published in October 2016.
Financial
During the half year ended 31 December 2017, the Group recorded
a loss after tax of US$975,145 (31 December 2016: loss US$957,681).
Cash balances at 31 December 2017 amounted to US$6,080,861 (30 June
2017: US$7,807,605). The Group has no debt.
Outlook
The Company remains committed to pursuing its Italian
applications through to award, along with the Namibian project
where the farm-out process has recently commenced with a view to
seeking a partner to fund future operations on the Block,
commencing with a 3D seismic survey. We look forward to updating
shareholders on progress with these endeavours in due course.
John van der Welle Peter Hill
Chairman Chief Executive Officer
1. OPERATING AND FINANCIAL REVIEW
Namibian Project
The Namibian Project consists of an 85% participating interest
in Petroleum Exploration Licence Number 29 covering Offshore Blocks
1910B and 2010A in the Republic of Namibia. The Licence, issued on
3 December 2010, originally covered 11,730 square kilometres and is
located offshore Namibia in water depths ranging from 1,300 metres
to 3,000 metres (Refer Figure 1). The Initial Exploration Period of
the Licence expired in December 2014, and Global fulfilled its
corresponding work obligations approximately halfway through the
initial four year term. The Company agreed with the Namibian
Ministry of Mines and Energy to a 12 month extension of the Initial
Exploration Period to December 2015, on the basis of an agreed work
programme which entailed further interpretation work on existing
seismic data.
In December 2015, the Company entered into the First Renewal
Exploration Period (Phase 2) of the Licence, making a mandatory
relinquishment of 50% of the Licence Area. Phase 2 was for a
duration of 24 months with a reduced Minimum Work Programme which
no longer contained a well commitment. Instead, the Company
undertook to reprocess and re-interpret previously acquired 2D
seismic data and to shoot 800 kilometres of new 2D. To this end,
the Company's technical team has evaluated reprocessed 2D seismic
data from the 1990s and took delivery of reprocessed speculative 2D
seismic data shot over its Blocks in 2011/12 by the seismic
company, TGS.
Following the reprocessing and evaluation of the historic 2D
data, the Company entered into a contract with Seabird Exploration
of Norway in order to acquire 834 km of new full fold seismic data
over its Blocks. This data was shot during June and July 2017 with
processing and interpretation of the new 2D seismic completed
during the reporting period.
The new information significantly improved the prospectivity
across the Licence area in general and in particular the Gemsbok
prospect. Better imaging from the recently acquired 2D data
revealed that known source rock intervals are likely to be within
the oil generative window and this, combined with data showing
repeating oil seeps along the faulted flanks of Gemsbok, greatly
improves the chance of a major oil discovery.
As a result, the Company commissioned a CPR in respect of its
acreage from consultants AGR TRACS, which was completed post the
reporting period. Prospective resources have been calculated on
three prospects: the Company's primary structure Gemsbok, as well
as Dik Dik and Lion. Further details of the CPR, can be found
within the Company's announcement of 15 January 2018 and the full
report is located on the Company's website.
The Company successfully negotiated and agreed with the MME an
extension of the First Renewal Exploration Period (Phase 2) of the
Company's Licence for a period of 12 months to 3 December 2018. In
addition, the MME agreed entry into the Second Renewal Period
(Phase 3) effective from 3 December 2018 for 2 years.
The minimum work commitment for the one year extension of Phase
2 is the acquisition of 600 square kilometres of 3D seismic which
is contingent on the Company concluding a farm-out agreement with a
third party to fund the acquisition of the 3D data. The 3D
acquisition can be carried over into Phase 3 in the event that it
is not competed within the Phase 2 extension period. During Phase
3, the commitment is to drill a well (depth and location to be
agreed) unless the MME and the Company agree that circumstances
dictate otherwise.
The Company appointed Stellar Energy Advisors subsequent to the
reporting period to advise on a structured farm-out process of the
Company's Namibian acreage with a view to seeking a partner to fund
future operations, commencing with the 3D seismic data
acquisition.
The Company's wholly owned subsidiary, Jupiter Petroleum
(Namibia) Limited, remains operator with an 85% interest in the two
Blocks, with partners NAMCOR and Bronze Investments Pty Ltd
(Bronze) holding 10% and 5% respectively, both as carried
interests.
1. OPERATING AND FINANCIAL REVIEW (continued)
Permit Applications in the Southern Adriatic, Offshore Italy
In August 2013, the Company submitted an application and
proposed work programme and budget to the Italian Ministry of
Economic Development for four exploration areas offshore Italy (the
"Permit Applications" - Figure 2).
As previously reported, various local authorities and interest
groups appealed against the Environmental Decrees in relation to d
82 F.R-GP and d 83 F.R-GP. Publication of Environmental Decrees is
the final administrative stage before grant of the Permits. The
above-mentioned Decrees were published in October 2016 and the
appeals against them are expected to be heard by the Latium
Administrative Tribunal (Rome) in Q4 2018.
The Company announced during the reporting period (in October
2017) that the remaining two Environmental Decrees in relation to
the Permit Applications, designated d 80 F.R-GP and 81 F.R-GP, had
been published by the Italian authorities.
As with the previous two Environmental Decrees, a number of
appeals by various interested parties against the new Decrees have
been notified to the Company. Global understands that recent
appeals against other Environmental Decrees in the Southern
Adriatic have been rejected by the same tribunal.
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 Marathon, OMV and
Eni/Novatek (the latter just 35 km from the nearest of the Permit
Applications). The four Permit Application Blocks are contiguous
with the Italian median lines abutting Croatia, Montenegro and
Albania respectively.
1. OPERATING AND FINANCIAL REVIEW (continued)
Outlook
The Company remains committed to pursuing its Italian
applications through to award, along with the Namibian project
where the farm-out process has recently commenced with a view to
seeking a partner to fund future operations on the Block,
commencing with a 3D seismic survey.
Presentation currency
The financial information in this half year report is presented
in United States dollars (US$).
2. DIRECTORS
The Directors of the Company at any time during or since the end
of the half year are:
Non-Executive
Mr John van der Welle - Chairman
Mr Peter Blakey
Mr Damien Cronin (resigned as a Director and Company Secretary
31 December 2017)
Mr Andrew Draffin (appointed as Company Secretary 1 January
2018)
Mr Garrick Higgins (appointed as a Non-Executive Director 9
October 2017)
Mr Peter Taylor
Executive
Mr Peter Hill - Managing Director and Chief Executive
Officer
3. ASX LISTING RULE 5.4.3
The following information is provided in accordance with ASX
Listing Rule 5.4.3:
-- The Company holds Petroleum Exploration Licence Number 29
covering Offshore Blocks 1910B and 2010A in the Republic of
Namibia.
-- No petroleum tenements were acquired by the Company during the review period.
-- No beneficial percentage interests in joint venture, farm-in
or farm-out agreements were acquired or disposed of by the Company
during the review period.
4. SUBSEQUENT EVENTS
With the exception of the items below, there has not arisen, in
the interval between the end of the half year and the date of this
report, any item, transaction or event of a material nature likely,
in the opinion of the Directors of the Company, to affect
significantly the operations of the Group, the results of those
operations or the state of affairs in subsequent financial
periods.
On 15 January 2018, the Company announced the results of a
Competent Persons Report which confirmed a high level of
prospectivity in the Namibian Blocks held by the Company, and
included the calculation of Prospective Resources.
Stella Energy Advisors were appointed on 19 January 2018 to
advise the Company during a structured farm-out process of the
Company's Namibian acreage with a view to seeking a partner to fund
future operations, commencing with a 3D seismic survey.
5. AUDITOR'S INDEPENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
The lead auditor's independence declaration is set out on page 9
and forms part of the Directors' Report for the 6 month period
ended 31 December 2017.
Signed in accordance with a resolution of the Directors:
ANDREW DRAFFIN
Director and Company Secretary
12 March 2018
For the six months ended 31 December
Note 2017 2016
US$ US$
------------------------------------ ----- ------------ ----------
Continuing operations
Salaries and employee benefits
expense (205,755) (216,290)
Administrative expenses (536,465) (517,499)
Other expenses (91,360) (108,719)
Business development expenses 4 (55,164) (77,267)
Foreign exchange gain (loss) (3,422) (37,467)
Equity based remuneration 6 (128,167) (22,348)
Results from operating activities (1,020,333) (979,590)
------------------------------------ ----- ------------ ----------
Finance income 45,188 21,909
------------------------------------ ----- ------------ ----------
Net finance income 45,188 21,909
------------------------------------ ----- ------------ ----------
Profit (loss) before tax (975,145) (957,681)
Tax benefit (expense) - -
------------------------------------ ----- ------------ ----------
Profit (loss) from continuing
operations after tax (975,145) (957,681)
------------------------------------ ----- ------------ ----------
Profit (loss) for the period (975,145) (957,681)
==================================== ===== ============ ==========
Other comprehensive income
Foreign currency translation
differences - foreign operations - -
Other comprehensive income (loss)
for the period, net of tax -
Total comprehensive income (loss)
for the period (975,145) (957,681)
==================================== ===== ============ ==========
Earnings per share (cents)
Basic earnings (loss) per share (0.48) (0.47)
------------------------------------ ----- ------------ ----------
Diluted earnings (loss) per share (0.48) (0.47)
------------------------------------ ----- ------------ ----------
The condensed consolidated statement of profit and loss and
comprehensive income is to be read in conjunction with the
accompanying notes on pages 11 to 14.
Note 31 December 30 June
2017 2017
US$ US$
------------------------------- ----- ------------- -------------
Assets
Cash and cash equivalents 6,080,861 7,807,605
Trade and other receivables 155,947 131,972
Prepayments 64,897 50,352
Total current assets 6,301,705 7,989,929
------------------------------- ----- ------------- -------------
Plant and equipment 5,348 5,943
Exploration assets 4 1,682,631 1,109,115
------------------------------- ----- -------------
Total non-current assets 1,687,979 1,115,058
------------------------------- ----- ------------- -------------
Total assets 7,989,684 9,104,987
------------------------------- ----- ------------- -------------
Liabilities
Trade and other payables 163,414 444,555
Current tax payable - -
Provisions 156,635 143,819
Total current liabilities 320,049 588,374
------------------------------- ----- ------------- -------------
Total non-current liabilities - -
------------------------------- ----- ------------- -------------
Total liabilities 320,049 588,374
------------------------------- ----- ------------- -------------
Net assets 7,669,635 8,516,613
=============================== ===== ============= =============
Equity
Issued share capital 39,221,112 39,221,112
Reserves 1,535,305 1,407,138
Accumulated losses (33,086,782) (32,111,637)
------------------------------- ----- ------------- -------------
Total equity 7,669,635 8,516,613
=============================== ===== ============= =============
The condensed consolidated statement of financial position is to
be read in conjunction with the accompanying notes on pages 11 to
14.
Attributable to owners of the Company
-------------------------- -------------------------------------------------------------------------------
Share Option Foreign Accumulated Total
Capital Reserve Currency Losses Equity
Translation
Reserve
US$ US$
US$ US$ US$
-------------------------- ------------------ --------- -------------------- ------------- -----------
Six months ended
31 December 2017
Balance at 1
July 2017 39,221,112 836,728 570,410 (32,111,637) 8,516,613
Issue of Options
(note 5) - 128,167 - - 128,167
Total comprehensive
profit(loss)
for the period:
Net profit(loss)
for the period - - - (975,145) (975,145)
Other comprehensive
profit(loss):
Foreign exchange
translation differences - - - - -
------------------ ---------
Total comprehensive
profit(loss)
for the period - - - (975,145) (975,145)
Balance at 31
December 2017 39,221,112 964,895 570,410 (33,086,782) 7,669,635
================== ========= ==================== ============= ===========
Six months ended
31 December 2016
Balance at 1
July 2016 39,198,764 836,728 586,827 (30,255,174) 10,367,145
Issued shares
(refer Note 5) 22,348 - - - 22,348
Total comprehensive
profit(loss)
for the period:
Net profit(loss)
for the period - - - (957,681) (957,681)
Other comprehensive
profit(loss):
Foreign exchange
translation differences - - - - -
-------------------- ------------- -----------
Total comprehensive
profit(loss)
for the period - - - (957,681) (957,681)
------------------ --------- -------------------- ------------- -----------
Balance at 31
December 2016 39,221,112 836,728 586,827 (31,212,855) 9,431,812
================== ========= ==================== ============= ===========
Amounts are stated net of tax
The condensed consolidated statement of changes in equity is to
be read in conjunction with the accompanying notes on pages 11 to
14.
For the six months ended
31 December
2017 2016
US$ US$
------------------------------- ------------- ------------
Cash flows from operating
activities
Cash paid to suppliers and
employees (1,229,848) (1,059,606)
Interest received 45,188 21,909
Refunds (payments) of GST
and VAT 93,740 96,438
Net cash provided by (used
in) operating activities (1,090,920) (941,259)
------------- ------------
Cash flows from investing
activities
Exploration and business
development expenditure (628,680) (316,667)
Net cash from (used in)
investing activities (628,680) (316,667)
------------- ------------
Net increase (decrease)
in cash and cash equivalents (1,719,600) (1,257,926)
Cash and cash equivalents
at 1 July 7,807,605 10,172,598
Effects of exchange rate
fluctuations on cash and
cash equivalents (7,144) 7,551
Cash and cash equivalents
at 31 December 6,080,861 8,922,223
============= ============
The condensed consolidated statement of cash flows is to be read
in conjunction with the accompanying notes on pages 11 to 14.
1. REPORTING ENTITY
Global Petroleum Limited ("Global") is a company domiciled in
Australia. Global is a company limited by shares incorporated in
Australia and whose shares are publicly traded on the Australian
Securities Exchange (ASX) and the London Stock Exchange (AIM). The
condensed consolidated interim financial statements of the Company
as at and for the six months ended 31 December 2017 comprise 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 2017 are available upon request from
the Company's registered office at Level 5, Toowong Tower, 9
Sherwood Road, Brisbane, QLD 4066, Australia or at
www.globalpetroleum.com.au.
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 2017 ('last annual financial statements'). They do not include
all of the information required for a complete set of annual
financial 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 12 March 2018.
The financial information in this half year report is presented
in United States dollars ("US$").
Use of judgement and estimates
In preparing these interim financial statements, management has
made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
Any significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 30 June 2017.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in these interim financial
statements are the same as those applied to the Group's
consolidated financial statements as at and for the year ended 30
June 2017.
4. EXPLORATION ASSETS
6 months to 12 months
31 December to
2017 30 June 2017
US$ US$
-------------------------- ------------- --------------
Balance at beginning of
period 1,109,115 286,667
Expenditure incurred and
capitalised during the
period 573,516 822,448
-------------------------- ------------- --------------
Balance at end of period 1,682,631 1,109,115
-------------------------- ------------- --------------
The Group's exploration assets at period end relate solely to
its Namibian Project.
An amount of US$55,164 (31 Dec 2016: US$77,267) was spent on
business development, which relates to the Group's activities in
assessing opportunities in the oil and gas sector.
5. EQUITY SECURITIES ISSUED
Discretionary grant of shares
On 26 August 2016, the Company made a discretionary grant of
shares, following shareholder approval at the AGM on 17 November
2015, to the Directors. 838,842 ordinary shares were issued for no
consideration.
This share grant was accounted for as a share based payment and
this resulted in US$22,348 being recognised as an expense in the
half year period to 31 December 2016. No shares were granted in the
6 months to 31 December 2017.
6 months to 31 Number of shares Value of shares
December 2016
------------------- ----------------- -----------------------
Peter Hill 517,545 AU$18,114 (US$13,788)
------------------- ----------------- -----------------------
John van der Welle 93,629 AU$3,277 (US$2,494)
------------------- ----------------- -----------------------
Peter Blakey 48,771 AU$1,707 (US$1,299)
------------------- ----------------- -----------------------
Damien Cronin 130,126 AU$4,554 (US$3,468)
------------------- ----------------- -----------------------
Andrew Draffin Nil Nil
------------------- ----------------- -----------------------
Peter Taylor 48,771 AU$1,707 (US$1,299)
------------------- ----------------- -----------------------
Total 838,842 AU$ 29,359 (US$22,348)
------------------- ----------------- -----------------------
Options issued
On 14 November 2017, following AGM approval, options were issued
to some of the Directors. They were valued at AUD $0.021 (US$0.016)
per option. The fair value of the options was determined by
adopting a Binomial options pricing model. The total expense
arising from the equity based payment for the 6 month period to 31
December 2017 was US$128,167. There were no vesting or performance
conditions. They are exercisable before 13 November 2022. No
options were issued in the 6 months to 31 December 2016.
6 months to 31 Number of options Value of options
December 2017
------------------- ------------------ -------------------------
Peter Hill 6,000,000 AU$126,000 (US$96,125)
------------------- ------------------ -------------------------
John van der Welle 1,000,000 AU$21,000 (US$16,022)
------------------- ------------------ -------------------------
Andrew Draffin 500,000 AU$10.500 (US$8,010)
------------------- ------------------ -------------------------
Garrick Higgins 500,000 AU$10.500 (US$8,010)
------------------- ------------------ -------------------------
Total 8,000,000 AU$ 168,000 (US$128,167)
------------------- ------------------ -------------------------
No options were exercised or cancelled in the 6 month period to
31 December 2017 or 2016.
6. SHARE BASED PAYMENTS
Other than the grant of options disclosed in Note 5, no other
share based payments were made during the 6 month period to 31
December 2017.
7. SEGMENT INFORMATION
The following is an analysis of the Group's revenue and results
by reportable segment.
Africa - the Group currently holds prospective oil and gas
exploration interests offshore Namibia.
7. SEGMENT INFORMATION (cont)
Africa Consolidated
For the six months 2017 2016 2017 2016
ended 31 December US$ US$ US$ US$
----------------------------- --------------- -------------- --------------- ---------------
Segment revenue
External revenue - - - -
----------------------------- --------------- -------------- --------------- ---------------
Total revenue - - - -
============================= =============== ============== =============== ===============
Segment result
Segment result - - - -
- - - -
----------------------------- --------------- -------------- --------------- ---------------
Interest income 45,188 21,909
Net foreign exchange
gain (loss) (3,422) (37,467)
Corporate and administration
costs (888,744) (919,775)
Equity based remuneration (128,167) (22,348)
Profit (loss) for
the period before
tax (975,145) (957,681)
-------------------------------------------------------------- --------------- ---------------
Income tax benefit - -
----------------------------- --------------- -------------- --------------- ---------------
Profit (loss) for
the 6 month period (975,145) (957,681)
============================================================== =============== ===============
Africa Consolidated
31 December 30 June 31 December 30 June
2017 2017 2017 2017
US$ US$ US$ US$
------------------------- ----------------------------- ---------- ---------------------------- ------------
Assets
Segment assets 1,719,484 1,125,077 1,719,484 1,125,077
Unallocated assets - - 6,270,200 7,979,910
------------------------- ----------------------------- ---------- ---------------------------- ------------
Consolidated Assets 7,989,684 9,104,987
========================= ============================= ========== ============================ ============
Liabilities
Segment liabilities 47,519 277,397 47,519 277,397
Unallocated liabilities - - 272,530 310,976
------------------------- ----------------------------- ---------- ---------------------------- ------------
Consolidated liabilities 320,049 588,373
========================= ============================= ========== ============================ ============
8. CAPITAL AND JOINT VENTURE COMMITMENTS
8.1 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.
8. CAPITAL AND JOINT VENTURE COMMITMENTS (Cont.)
8.2 Joint venture commitments
On 26 August 2011, the Group acquired Jupiter Petroleum Limited
("Jupiter") which holds prospective oil and gas exploration
interests in offshore Namibia. In order to maintain current rights
of tenure to the exploration Licences, Global is required to
perform minimum exploration work to meet the minimum expenditure
requirements
specified in the Namibian Petroleum Exploration Agreement. The obligations include:
(a) Initial Exploration Period (First four years of Licence
commencing on 3 December 2010. On 22 August 2014 the Namibian
Government extended only this Initial Exploration Period by 12
months to 3 December 2015):
The minimum exploration expenditure commitment for the Initial
Exploration Period: was US$1 million. Over US$3 million was spent
by Jupiter during this period.
(b) First Renewal Exploration Period (Three years from 3 December 2015 to 3 December 2018):
The Ministry of Mines and Energy ("MME") agreed a 2 year renewal
period to run until 3 December 2017. They also agreed a 50%
relinquishment of the Licence area. Minimum exploration expenditure
for the 2 year renewal period:
-- The reprocessing of existing 2D seismic lines across that
portion of the Licence Area which is retained following the
mandatory 50% relinquishment. This was completed during the second
and third quarter of 2016.
-- Acquisition of 800km of long offset 2D over the retained
acreage. The reprocessed existing 2D data
will be used to assist with the design and location of the new survey.
The acquisition and processing were completed by the end of
2017.
In November 2017, the MME agreed an extension to the First
Renewal Exploration Period of 12 months to 3 December 2018. In
addition, the MME has agreed entry into the Second Renewal Period
effective from 3 December 2018 for a period of two years.
The minimum work program for the one year extension is the
acquisition of 600 square kilometres of 3D seismic data, contingent
upon Global concluding a farm-out agreement with a third party to
fund the acquisition of the 3D data. If the 3D acquisition is not
completed during the 12 month extension period, it may be carried
over into the Second Renewal Period.
(c) Second Renewal Period (Two years from 3 December 2018):
During the Second Renewal Period the commitment is to drill one
well (depth and location to be agreed) unless the Ministry and
Global agree that circumstances dictate otherwise.
Jupiter has an 85% interest in the Petroleum Exploration
Licence, however, it is responsible for 100% of the expenditure
requirements with its joint venture partners holding a total of 15%
free carried interest.
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.
10. SUBSEQUENT EVENTS
With the exception of the items below, there has not arisen, in
the interval between the end of the half year and the date of this
report, any item, transaction or event of a material nature likely,
in the opinion of the Directors of the Company, to affect
significantly the operations of the Group, the results of those
operations or the state of affairs in subsequent financial
periods.
On 15 January 2018 the Company announced the results of a
Competent Persons Report which the Directors consider confirmed a
high level of prospectivity in the Namibian Blocks held by the
Company, and included the calculation of Prospective Resources.
Stella Energy Advisors were appointed on 19 January 2018 to
advise the Company during a structured farm-out process of the
Company's Namibian acreage with a view to seeking a partner to fund
future operations, commencing with a 3D
seismic survey.
DIRECTORS' DECLARATION
In the opinion of the Directors of Global Petroleum Limited:
1. the condensed consolidated interim financial statements and
notes, set out on pages 10 to 17 are in accordance with the
Corporations Act 2001 including:
(a) giving a true and fair view of the Group's financial
position as at 31 December 2017 and of its performance for the 6
month period ended on that date; and
(b) complying with Australian Accounting Standard AASB 134
Interim Financial Reporting and the Corporations Regulations 2001;
and
2. there are reasonable grounds to believe that the Company will
be able to pay its debts as and when they become due and
payable.
Signed in accordance with a resolution of the Directors:
ANDREW DRAFFIN
Director and Company Secretary
12 March 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LIFSRVTISLIT
(END) Dow Jones Newswires
March 14, 2018 03:02 ET (07:02 GMT)
Global Petroleum (LSE:GBP)
Historical Stock Chart
From Apr 2024 to May 2024
Global Petroleum (LSE:GBP)
Historical Stock Chart
From May 2023 to May 2024