TIDMGBP

RNS Number : 4549G

Global Petroleum Ltd

30 March 2022

30 March 2022

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 2021

Global (AIM: GBP) is pleased to announce its financial results for the six months ended 31 December 2021.

Operational

-- Ongoing technical work has successfully mapped the Barremian-Aptian source rock from previous drilling in the Walvis Basin, offshore Namibia, into the Company's PEL0094 licence area

-- Two significant discoveries of oil and gas in the Orange Basin, offshore southern Namibia, announced in February 2022 by other operators and interpreted by Global to be sourced from the Barremian-Aptian, with highly encouraging technical similarities between these discoveries and the prospectivity in PEL0094

-- European Court judgement in the Company's favour regarding its 4 permit applications, in Italian southern Adriatic Sea; new Hydrocarbon Plan published in February 2022 currently being evaluated

Financial

-- Further successful equity raise of GBP1.0 million gross proceeds in August 2021, strengthening the Company's finances and enabling continued exploration activity in Namibia

-- Cash balance at period end US$2,007,024 (30 June 2021: US$1,834,434), reflecting the equity raise in the period

-- Loss after tax US$825,890 (2021: loss US$3,055,295 following impairment write off associated with expired licence PEL0029).

Strategy and Outlook

The recent drilling successes in the Orange Basin are expected to bring a very strong boost to both industry and investor confidence in relation to Namibian offshore exploration generally. Global believes it is well positioned to benefit from this, and the Company is continuing with its farm-out process to fund the next stage of exploration on its licence.

In Italy, a detailed study of the implications of the new Hydrocarbon Plan is being undertaken, to aid a determination of Global's next steps in relation to its licence applications in the southern Adriatic Sea.

In addition, as previously announced, the Company will continue to explore all strategic alternatives in order to maximise shareholder value.

For further information please visit: www.globalpetroleum.com.au or 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 
  & Joint Broker)                                    2500 
 John Prior / Ailsa MacMaster 
  Corporate Broking: Hugh Rich 
 
 ETX Capital (Joint Broker)                         +44 (0) 20 7392 
  Thomas Smith                                       1568 
 
 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 Interim Financial Report for the six months ended 31 December 2021.

The Company's focus during the reporting period was the continued strengthening of its finances in order to position it to enter the next sub-phase of its Namibian licence PEL0094 from September 2021, and ongoing exploration work on this licence.

In August 2021, Global notified the Ministry of Mines and Energy of its intention to enter into the remaining one year of the PEL0094 Initial Exploration Period, expiring in September 2022. The commitment for this period is to shoot a 2,000 square kilometre 3D seismic data survey. During the period Global has continued with its technical work on the licence, successfully mapping, with the latest technology, the Barremian-Aptian Kudu Shale source rock from previous drilling in the Walvis Basin into its licence area.

Following the end of the reporting period, in February 2022, the oil and gas exploration sector of Namibia was transformed by the announcement of two significant discoveries of oil and gas in the Orange Basin, southern Namibia, reinforcing evidence of a new petroleum province offshore Namibia. The Shell operated Graff-1 well made a discovery of light oil in both primary and secondary targets, proving a working petroleum system for light oil. The TotalEnergies operated Venus 1-X well discovered light oil with associated gas. Rapid appraisal of both discoveries by the respective joint ventures is anticipated. Both of these discoveries, and Global's prospects and leads on PEL0094, are interpreted by the Company to be sourced with the Barremian-Aptian Kudu Shale. Accordingly the apparent technical similarities between these discoveries and the prospectivity in our own licence is highly encouraging.

In November 2021 the Company appointed PVE Consultants to assist in the farm-out of PEL0094, ahead of the exploration drilling in the Orange Basin. Apart from the technical similarities with PEL0094 referred to above, the successful outcome of the Graff-1 and Venus 1-X wells is widely expected to spark interest in Namibian offshore exploration as a whole.

In Italy, regarding the outstanding appeal in relation to the Company's four licence applications in the Adriatic Sea, the judgement of the European Court was announced by the Company in January 2022. The Court found, in effect, that the Company's licence applications offshore Italy in the southern Adriatic do not contravene EU law. Subsequently, in February 2022, the anticipated Hydrocarbon Plan for future exploration and development in Italy was published, and came into legal effect. Global and its advisers are currently undertaking a detailed study of the Hydrocarbon Plan with reference to our licence applications, and the process and timing for implementation of the Plan. Following this, we will assess the Company's options on the way forward with the applications.

Corporate

The Company notes the continuing volatility of the oil price, which had fallen significantly due to the impact of the COVID-19 pandemic. Its subsequent recovery as demand for oil has increased has recently been over-shadowed by the invasion of the Ukraine, which has caused the oil price to reach levels not seen for many years, with heightened supply concerns. As a pre- revenue company in the early stages of exploration, Global does not directly benefit from current high oil prices. The Company has no direct or indirect exposure to Russia and is not directly impacted by sanctions imposed on the country and/or people and entities connected with it.

The strengthening of the Company's financial position, which commenced in 2020, has now seen three successful equity share placings which have raised combined total gross proceeds of GBP3.4 million (excluding any further proceeds from the future potential exercise of associated warrants). The most recent of these was undertaken in the reporting period in August 2021, and raised gross proceeds of GBP1.0 million.

We are pleased to have successfully undertaken this strengthening of Global's finances, and are delighted to welcome new shareholders to the Company.

Proceeds from these equity raises has enabled the Company to continue its exploration activities in Namibia, including entering the remaining one year Initial Exploration Period on PEL0094 until September 2022, together with ongoing efforts to farm-out part of its equity in this licence.

The impact on our business operations related to COVID-19 has fortunately been very limited.

Financial

During the six months ended 31 December 2021, the Group recorded a loss after tax of US$825,890 (2020: US$3,055,295). Cash balances at 31 December 2021 amounted to US$2,007,024 (30 June 2021: US$1,834,434), the increase reflecting the proceeds from the equity raise completed in the reporting period. The Group has no debt outside of suppliers who are settled on normal commercial terms.

Strategy and Outlook

The recent drilling successes in the Orange Basin are expected to bring a very strong boost to both industry and investor confidence in relation to Namibian offshore exploration generally. We believe that Global is well positioned to benefit from this, and are continuing with our farm-out process to fund the next stage of exploration on our licence.

In Italy, we will need to finish our detailed study of the implications of the new Hydrocarbon Plan, and then determine our next steps in relation to our licence applications in the southern Adriatic Sea.

In addition, as previously announced, the Company will continue to explore all strategic alternatives in order to maximise shareholder value.

John van der Welle Peter Hill

Chairman Chief Executive Officer

   1.            OPERATING AND FINANCIAL REVIEW 

Namibian Project

The Namibian Project consists of an operated 78 per cent participating interest in Petroleum Exploration Licence ("PEL") 0094 (acquired in 2018) which covers Block 2011A (see Figure 1). The Company also previously held an operated 85 per cent participating interest in PEL0029 covering Blocks 1910B and 2010A. PEL0029 expired on 3 December 2020, enabling the Company to focus its technical efforts on PEL0094.

In July 2020 the Company announced updated estimates of Prospective Resources for PEL0094 after interpretation of the existing 3D seismic data, licensed from the Namibian State Oil Company, NAMCOR, in March 2020. The agreement with NAMCOR to licence the 3D seismic data on Block 2011A in return for extra equity in the licence helped conserve the Company's cash resources. The interpretation of the 3D seismic data led to increased confidence in the two prospects, Marula and Welwitschia Deep. The Marula prospect is a distal pinchout of Upper Cretaceous sandstones onto the Welwitschia high. The Welwitschia Deep prospect was also confirmed by interpretation of the 3D seismic data as an Albian carbonate reservoir.

The four-year Initial Exploration Period of PEL0094 had initially been split into two sub-periods of two years each, with the first sub-period ending in September 2020. By an amendment agreed with the Ministry of Mines and Energy (the "Ministry"), the Ministry gave Global a further year to fulfill a modified work commitment, concentrated 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.

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 both the wells and on the seismic data, and also performed seismic inversion on some of the data. 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, 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 more than fulfilled the firm work commitments for the extended sub-period to September 2021. 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 significantly reinforced the Company's confidence that the source rock is present and generating oil in PEL0094 and vindicated the Company's view that the acreage is highly prospective.

In August 2021 Global notified the Ministry of its intention to enter into the remaining one year of the Initial Exploration Period, expiring in September 2022. The commitment for this period is to shoot a new 2,000 square kilometre 3D seismic data survey, which the Company intends to fund via a farm-out. The Company expects to be able to secure a further one-year extension to the Initial Exploration Period (to September 2023) if necessary, based on the precedent of PEL0029 and that of other companies holding exploration licences offshore Namibia.

Much of the interest by oil companies (including super-majors) in Namibia historically was believed to have been driven by the perception that the Barremian-Aptian source rock in Namibia is of excellent quality, regionally developed and so capable of generating substantial volumes of hydrocarbons. The source rock had been proven by previous drilling in southern Namibia where the Orange Basin is located. The same Barremian-Aptian source rock is also proven by two previous wells in the Walvis Basin in the north (where PEL0094 is situated). Global used part of the proceeds raised in 2021 to map the source rock from those wells into its licence, using the latest technology, and carried out a study to calculate the volume of oil likely generated and available to migrate into Global's prospects and leads.

Following the end of the reporting period, in February 2022 the oil and gas exploration sector of Namibia was transformed by the announcement of two significant discoveries of oil and gas in the Orange Basin, southern Namibia, reinforcing evidence of a new petroleum province offshore Namibia. The Shell operated Graff-1 well made a discovery of light oil in both primary and secondary targets, proving a working petroleum system for light oil. The TotalEnergies operated Venus 1-X well discovered light oil with associated gas. Rapid appraisal of both discoveries by the respective joint ventures is anticipated. Both of these discoveries, and Global's prospects and leads on PEL0094, are interpreted by the Company to be sourced from the Barremian-Aptian as previously prognosed. Accordingly, the apparent technical similarities between these discoveries and the prospectivity in our own licence is highly encouraging.

In November 2021 the Company appointed PVE Consultants to assist in the farm-out of PEL0094, ahead of the exploration drilling in the Orange Basin. Apart from the technical similarities with PEL0094 referred to above, the successful outcome of the Graff-1 and Venus 1-X wells is widely expected to spark interest in Namibian offshore exploration as a whole.

http://www.rns-pdf.londonstockexchange.com/rns/4549G_1-2022-3-29.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 (see 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 Permit 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 judgement of the European Court was announced by the Company in January 2022. The Court found, in effect, that the Company's licence applications offshore Italy in the southern Adriatic do not contravene EU law.

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, a Government-appointed Commission was 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 and environmental factors 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 was extended twice.

In February 2022, the anticipated Hydrocarbon Plan was published, and came into legal effect. Global and its advisers are currently undertaking a detailed study of the Hydrocarbon Plan with reference to our licence applications, and the process and timing for implementation of the Plan. Following this, we will assess the Company's options on the way forward with the applications.

http://www.rns-pdf.londonstockexchange.com/rns/4549G_2-2022-3-29.pdf

   2.            SUBSEQUENT   EVENTS 

There are no events subsequent to reporting period.

3. AUDITOR'S INDEPENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

The lead auditor's independence declaration is set out on page 7 and forms part of the Directors' Report for the 6 month period ended 31 December 2021.

Signed in accordance with a resolution of the Directors:

Andrew Draffin

   Director   and Company Secretary Dated: 29 March 2022 

GLOBAL PETROLEUM LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE HALF-YEARED 31 DECEMBER 2021

 
                                                                 Group 
                                                        For the six months ended 
                                                              31 December 
                                                            2021         2020 
     Note                                                    US$          US$ 
Employee benefits expense                                (270,052)      (132,365) 
Administrative expenses                                  (416,361)      (433,959) 
Other expenses                                            (88,986)      (120,548) 
Depreciation and amortisation                              (1,720)        (1,720) 
Exploration and business development 
 expenses                                       5            (546)       (27,886) 
Exploration written off                         5                -    (2,409,656) 
Foreign exchange gain                                     (48,357)         70,122 
                                                 -----------------  ------------- 
Results from operating activities                        (826,022)    (3,056,012) 
Finance income                                                 132            717 
                                                 -----------------  ------------- 
Net finance income                                             132            717 
                                                 -----------------  ------------- 
Loss before income tax                                   (825,890)    (3,055,295) 
Tax benefit (expense)                                            -              - 
                                                 -----------------  ------------- 
Loss for the period                                      (825,890)    (3,055,295) 
                                                 =================  ============= 
 
  Earnings per share 
  From continuing and discontinued operations 
Basic loss per share (cents)                                (0.11)         (1.03) 
Diluted loss per share (cents)                              (0.11)         (1.03) 
 

The accompanying notes form part of these financial statements.

GLOBAL PETROLEUM LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

 
                                                          Group 
                                                31 December    30 June 2021 
                                                      2021 
                                       Note            US$             US$ 
Assets 
Current assets 
 Cash and cash equivalents                        2,007,024       1,834,434 
Trade and other receivables                          53,851          80,622 
Other assets                                        235,412          39,384 
                                             --------------  -------------- 
Total current assets                              2,296,287       1,954,440 
                                             --------------  -------------- 
 
  Non-current assets 
  Property, plant and equipment                      14,877          16,597 
Exploration and evaluation assets         5       1,164,739         972,467 
                                             --------------  -------------- 
Total non-current assets                          1,179,616         989,064 
                                             --------------  -------------- 
Total assets                                      3,475,903       2,943,504 
                                             ==============  ============== 
 
  Liabilities 
Current liabilities 
 Trade and other payables                            89,537          83,999 
Provisions                                          231,229         163,458 
                                             --------------  -------------- 
Total current liabilities                           320,766         247,457 
                                             --------------  -------------- 
 
Total liabilities                                   320,766         247,457 
                                             --------------  -------------- 
Net assets                                        3,155,137       2,696,047 
                                             ==============  ============== 
 
  Equity attributable to owners of 
  the parent entity 
  Issued capital                          6      43,474,971      42,189,991 
Reserves                                          1,249,042       1,249,042 
Accumulated losses                             (41,568,876)    (40,742,986) 
                                             --------------  -------------- 
Total equity                                      3,155,137       2,696,047 
                                             ==============  ============== 
 

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 2021

 
 
                                               Issued            Option      Foreign        Accumulated        Total 
                                               Share Capital    Reserve     Currency        Losses 
                                                                           Translation 
                                                                             Reserve 
                                                     US$            US$       US$            US$             US$ 
  Consolidated Group 
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) 
                                           -----------------  ---------  -------------  ----------------  ----------- 
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 
                                           =================  =========  =============  ================  =========== 
Six months ended 31 December 2021 
Balance at 1 July 2021                            42,189,991    678,632        570,410      (40,742,986)    2,696,047 
Comprehensive income/(loss) 
Loss for the period                                        -          -              -         (825,890)    (825,890) 
                                           -----------------  ---------  -------------  ----------------  ----------- 
Total comprehensive income/(loss) 
 for the period                                            -          -              -         (825,890)    (825,890) 
                                           -----------------  ---------  -------------  ----------------  ----------- 
Transactions with owners, in their 
 capacity as owners, and other transfers 
Issue of shares                                    1,367,000          -              -                 -    1,367,000 
Transaction costs                                   (82,020)          -              -                 -     (82,020) 
                                           -----------------  ---------  -------------  ----------------  ----------- 
Total transactions with owners 
 and other transfers                               1,284,980          -              -                 -    1,284,980 
                                           -----------------  ---------  -------------  ----------------  ----------- 
 
Balance at 31 December 2021                       43,474,971    678,632        570,410      (41,568,876)    3,155,137 
                                           =================  =========  =============  ================  =========== 
 

The accompanying notes form part of these financial statements.

GLOBAL PETROLEUM LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 31 DECEMBER 2021

Group

For the six months ended 31 December

 
                                                   Note             2021       2020 
                                                                     US$        US$ 
Cash flows from operating activities 
 Interest received                                                   132          717 
Payments to suppliers and employees                            (816,425)    (759,344) 
GST/VAT refunds received                                          26,771       26,832 
                                                          --------------  ----------- 
Net cash (used in) operating activities                        (789,522)    (731,795) 
                                                          --------------  ----------- 
 
  Cash flows from investing activities 
  Payments for exploration and business 
  development expenditure                                      (192,818)    (656,496) 
Reclassification of bank guarantee                             (130,050)            - 
                                                          --------------  ----------- 
Net cash (used in) investing activities                        (322,868)    (656,496) 
                                                          --------------  ----------- 
 
  Cash flows from financing activities 
  Proceeds from issue of shares                                1,367,000    1,801,040 
Payments for capital raising costs                              (82,020)     (97,780) 
                                                          --------------  ----------- 
Net cash provided by financing activities                      1,284,980    1,703,260 
                                                          --------------  ----------- 
Net increase/(decrease) in cash held                             172,590      314,969 
Cash and cash equivalents at 1 July                            1,834,434      932,818 
                                                          --------------  ----------- 
Cash and cash equivalents at 31 December                       2,007,024    1,247,787 
                                                          ==============  =========== 
 

The accompanying notes form part of these financial statements.

   GLOBAL   PETROLEUM   LIMITED 

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIALS STATEMENTS

FOR THE SIX MONTHSED 31 DECEMBER 2021

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 2021 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 2021 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 2021 ('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 29 March 2022. 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 2021.

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 2021.

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$825,890 (31 December 2020: loss of US$3,055,295) and had net cash outflows from the operating activities of US$789,522 (31 December 2020: net cash outflows of US$731,795) for the half-year ended 31 December 2021. As of that date, the Group had net assets of US$3,155,137 (30 June 2021: US$2,696,047) and cash assets of US$2,007,024 (30 June 2021: US$1,834,434). 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, noting the Company has raised gross proceeds of GBP3.4 million in three successful equity raises in the period from September 2020 to August 2021.

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 2021   30 June 
                             of business                           2021 
                                                     (%)           (%) 
 Global Petroleum 
  UK Limited               United Kingdom           100            100 
 Global Petroleum 
 Exploration Limited       United Kingdom           100            100 
 Global Petroleum          British Virgin 
  Namibia Limited              Islands              100            100 
 
 

Note 5 Exploration and Evaluation Assets

 
                             6 months to    12 months to 
                              31 December    30 June 2021 
                                 2021 
                                 US$             US$ 
 Balance at beginning 
  of period                    972,467        2,673,754 
 Expenditure capitalised 
  during the period            192,272         708,985 
 Expenditure written off 
  during the period               -          (2,410,272) 
                            -------------  -------------- 
 Balance at end of period     1,164,739        972,467 
                            =============  ============== 
 

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 did not expense any other exploration and evaluation costs in the statement of profit and loss, (31 December 2020: US$2,409,656).

An amount of US$546 (31 December 2020: US$27,886) 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. In August 2021, the Company announced that the Namibian authorities had acknowledged the exercise by the Company of its option to enter into the next sub-period of PEL0094 from September 2021 to September 2022.

Note 6 Issued Capital

 
                               6 months to    12 months to 
                                31 December    30 June 2021 
                                   2021 
                                   US$             US$ 
 811,541,816 (30 June 2021: 
  611,541,816) fully paid 
  ordinary shares               43,474,971     42,189,991 
                              -------------  -------------- 
                                43,474,971     42,189,991 
                              =============  ============== 
 

The Group has authorised share capital amounting to 811,541,816 ordinary shares.

a) Ordinary Shares

 
                         6 months to 31 December     12 months to 30 June 
                          2021                        2021 
                             No.           US$           No.          US$ 
 Balance at beginning 
  of period               611,541,816   42,189,991   202,652,927   39,221,112 
 Shares issued during 
  the period              200,000,000    1,367,000   408,888,889    3,191,040 
 Less: Transaction 
  costs                             -     (82,020)             -    (222,161) 
                        -------------  -----------  ------------  ----------- 
 Balance at end 
  of period              811,541,816    43,474,971   611,541,816   42,189,991 
                        -------------  -----------  ------------  ----------- 
 

On 13 August 2021, the Company completed a placing issuing a total of 200,000,000 fully paid ordinary shares, raising a total of US$1,367,000.

(b) Options

 
                          6 months to 31 December       12 months to 30 June 
                                    2021                         2021 
                                 Number of          Weighted average   Number of        Weighted 
                                  options            exercise price      options    average exercise 
                                                                                          price 
                                                          US$                              US$ 
 Balance at beginning 
  of period                     27,100,000               0.0214        8,100,000         0.0380 
 Options issued during 
  the period                         -                                 19,000,000        0.0143 
                         ------------------------  -----------------  -----------  ------------------ 
 Balance at end of 
  period                        27,100,000               0.0214        27,100,000        0.0214 
                         ------------------------  -----------------  -----------  ------------------ 
 
 

(c) Warrants

 
                         6 months to 31 December        12 months to 30 June 
                                   2021                         2021 
                                Number of          Weighted average    Number of        Weighted 
                                 warrants           exercise price      warrants    average exercise 
                                                                                          price 
                                                         GBP                               GBP 
 Balance at beginning 
  of period                    297,777,778              0.012              -                - 
 Warrants issued 
  during the period            100,000,000              0.010         297,777,778         0.012 
                        ------------------------  -----------------  ------------  ------------------ 
 Balance at end 
  of period                    397,777,778              0.011         297,777,778         0.012 
                        ------------------------  -----------------  ------------  ------------------ 
 
 

Note 7 Operating Segments

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.

(a) Segment information

   (i)   Segment   performance 
   Africa                                         Consolidated 
 
                                                   2021              2020         2021       2020 
   For the six months ended 31 December             US$               US$          US$        US$ 
----------------------------------------  ----------------  ----------------  ---------  ----------- 
 Segment revenue 
 External revenue                                            - -                      -            - 
                                          ----------------------------------  ---------  ----------- 
 Total revenue                                               - -                      -            - 
                                          ==================================  =========  =========== 
 Segment result 
 Segment result                                              - (2,409,656)            -  (2,409,656) 
                                          ----------------------------------  ---------  ----------- 
                                                             - (2,409,656)            -  (2,409,656) 
                                          ==================================  =========  =========== 
 Interest income                                             - -                    132          717 
 Net foreign exchange gain (loss)                            - -               (48,357)       70,122 
 Corporate and administration costs                          - -              (777,665)    (716,478) 
                                          ----------------------------------  ---------  ----------- 
 Loss for the period before tax                              - (2,409,656)    (825,890)  (3,055,295) 
                                          ==================================  =========  =========== 
 Income tax benefit                                          - -                      -            - 
                                          ----------------------------------  ---------  ----------- 
 Loss for the 6 months period                                - (2,409,656)    (825,890)  (3,055,295) 
                                          ==================================  =========  =========== 
 
   (ii)   Segment assets and liabilities 
   Africa                                         Consolidated 
 
                                       31 December   30 June   31 December   30 June 
                                           2021        2021        2021        2021 
                                           US$                     US$ 
                                                       US$                      US$ 
-----------------------------------  -------------  --------  ------------  --------- 
Assets 
Segment assets                           1,164,739   972,467     1,164,739    972,467 
Unallocated assets                               -         -     2,311,164  1,971,037 
                                     -------------  --------  ------------  --------- 
Consolidated assets                      1,164,739   972,467     3,475,903  2,943,504 
                                     =============  ========  ============  ========= 
Liabilities 
Segment liabilities                          9,534     3,500         9,534      3,500 
Unallocated liabilities                          -         -       311,232    243,957 
                                     -------------  --------  ------------  --------- 
Consolidated liabilities                     9,534     3,500       320,766    247,457 
                                     =============  ========  ============  ========= 
 
Acquisition of non-current assets, 
 including capitalised                     192,272   708,985       192,272    708,985 
exploration assets 
                                     -------------  --------  ------------  --------- 
 

Note 8 Share-based Payments

   No   share   based   payments   were   made during the 6 month period to 31 December 2021. 

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.

   (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. In August 2021, the Company elected to enter the next licence sub-period IEP2 until September 2022.

The commitment is to shoot and process a new 2,000 square kilometre 3D seismic data 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 
   There   are   no   events   subsequent   to reporting period. 

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 2021 and of the performance for the year 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; and

3. the Directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer.

Director

Mr Andrew Draffin

   Dated :               29 March 2022 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR BLGDXUGDDGDC

(END) Dow Jones Newswires

March 30, 2022 02:00 ET (06:00 GMT)

Global Petroleum (LSE:GBP)
Historical Stock Chart
From Oct 2022 to Nov 2022 Click Here for more Global Petroleum Charts.
Global Petroleum (LSE:GBP)
Historical Stock Chart
From Nov 2021 to Nov 2022 Click Here for more Global Petroleum Charts.