28 March 2024
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 2023
Global (AIM: GBP) announces its
financial results for the half year ended 31 December
2023.
Highlights
Operational
·
The focus during the reporting period, and
subsequently, has been the Company's farm-out process and entering
the next exploration period in respect of its Namibian licence
PEL0094 ("Licence");
·
On 14 August 2023 the Company announced that the
Namibian authorities had given approval for the Company and its
partners to proceed to the First Renewal Period of the Licence,
with a duration of two years from September 2023 to September 2025.
Importantly, the usual requirement at the end of the Initial
Exploration Period to relinquish 50 per cent of the Licence area
was waived;
·
Global has continued its efforts to farm-out an
interest in the Licence. Further announcements will be made as and
when appropriate;
·
On 15 September 2023, the Company announced that
it had been informed that appeals against the environmental decrees
granted in its favour for Licence Applications D 80 F.R- GP, D 81
F.R-GP, D 82 F.R-GP and D 83 F.R-GP ("the Applications") by the
Italian authorities had been dismissed. The Company submitted
additional documentation in connection with the Applications to the
Italian Ministry of Ecological Transition and has been awaiting a
response from the Ministry regarding the process going forward.
Further announcements will be made as and when
appropriate.
Corporate
·
A number of changes to the Board of the Company
occurred in late November 2023. Mr Daniel Page and Ms Cecilia Yu
were appointed Executive Directors of the Company and Mr Azib Khan
was appointed a Non-Executive Director of the Company. Mr John Van
der Welle, Mr Peter Hill and Mr Garrick Higgins all resigned from
Board.
·
Post the period end Mr Daniel Page resigned on 11
March 2024
Financial
·
Loss after tax US$3,164 (2022: loss US$695,619)
reflecting ongoing exploration expenditure in Namibia;
·
Cash balance at year end US$ 597,365 (31 December 2022: US$ 356,389);
·
Costs and overheads minimised during the
period;
·
Equity raise of £250,000 gross proceeds in August
2023, following confirmation of entering the First Renewal Period
by the Namibian authorities, with a further fundraise of £253,000
in November 2023.
Strategy and Outlook
The primary aim of the Board
remains to find suitable opportunities in the sector, using the
team's extensive network. The Company has continued to make good
progress in identifying potential opportunities with a view to
diversifying the business away from being dependent on a single
asset.
For further information, please
visit www.globalpetroleum.com.au
or contact:
Global Petroleum Limited
|
+61 3 8611 5333
|
Andrew Draffin, Company Secretary
and Non-Executive Director
|
|
|
|
Panmure Gordon (UK) Limited (Nominated Adviser & Joint
Broker)
|
+44 (0) 20 7886 2500
|
James Sinclair-Ford / Freddie
Twist
Hugh Rich
|
|
|
|
CMC Markets (Joint Broker)
Tom Curran / Thomas
Smith
|
+44 (0) 20 7170 8200
|
|
|
SI Capital Limited
|
+44 (0) 148 341 3500
|
Nick Emerson / Nick
Briers
|
|
|
|
Tavistock (Financial PR & IR)
Simon Hudson / Nick
Elwes
|
+44 (0) 20 7920 3150
|
OPERATING AND FINANCIAL REVIEW
Review of Operations
The focus of Global Petroleum
Limited ("Global" or the "Company") during the reporting
period, and subsequently, has been its farm-out process and
entering the next exploration period in respect of its Namibian
licence PEL0094 ("Licence"), and the continued strengthening of its
finances in order to maintain its options for the Licence and/or
the possible pursuit of other strategic investments. It has also
continued to engage with the Italian authorities regarding the
Company's exploration permit applications.
In August 2023, the Company
announced that the Namibian authorities had given approval to
proceed to the first renewal exploration Period, from September
2023 to September 2025 .This came with a commitment to acquire,
process and interpret 2,000 kms of 3D seismic data (a commitment
carried over from the Initial Exploration Period) and to drill a
well contingent upon the results of interpretation of the
3D.
The Ministry waived the usual
requirement to relinquish 50% of the licence area at the end of the
Initial Exploration Period, which meant that Global and its
partners retained all of the prospectivity of the
licence.
At the beginning of each licence
period, the Company and its partners are obliged to issue a
guarantee, which is linked to the specified minimum exploration
expenditure of the firm work commitment. The precise quantum is
currently being negotiated between Global and the Ministry with the
matter expected to be resolved in April 2024.
Since the award the Company has
licensed both the existing 3D and 2D seismic data within PEL0094
and further 2D seismic data outside of PEL0094 to allow the
technical story to be understood and described, in order to attract
a partner to join Global in the licence.
Estimates of Prospective Resources
for PEL0094 were announced in July 2020 and in January 2021. In the
east of PEL0094 there are 7 leads with a total unrisked gross
Prospective Resources (Best Estimate) of 2,048 million barrels of
oil. In the centre of PEL0094 are the prospects Marula and
Welwitschia Deep, which contain a total of 881 million barrels of
oil. This gives a total on the licence of 2,929 million barrels
unrisked gross Prospective Resources (Best Estimate).
As previously reported, the
Company's work has established that in all the modelled cases the
source rock is mature in the northern Walvis Basin and that
sufficient volumes of hydrocarbons have migrated into the prospects
previously identified. Oil seeps have also been located - via a
satellite radar study - within the boundaries of the Licence, thus
further supporting the Company's interpretation of a working
petroleum system in the area.
In Italy, following the 'Plan for
Sustainable Energy Transition of Appropriate Areas' ("Plan") which
came into effect in February 2022, the Company provided the Italian
authorities technical evidence of the gas prospectivity in relation
to the Company's four licence applications in the Adriatic
Sea.
A key structural component of the
Plan is the provision that in future only exploration for gas (as
opposed to oil) will be permitted in Italy, both onshore and
offshore. As reported previously, the relevant authority, the
Italian Ministry of Ecological Transition, informed Global that the
Company's exploration objectives in the amended Applications are in
compliance with the provisions of the Plan.
In September 2023, the Company
made several announcements regarding Italy that it had been
informed that appeals against the environmental decrees granted in
its favour by the Italian authorities had recently been dismissed
by the Council of State (having previously been dismissed by the
tribunal in Rome). The actions were brought by the Municipality of
Margherita di Savoia in Puglia against the relevant Italian
Ministries and entities - with Global joined as an "interested
party" - and related to the Company's applications known as d 80
F.R GP, d 81 F.R GP d 82 F.R-GP and d 83 F.R-GP. The judgements in
Global's favour follow the victories in all of the cases brought
against the Company by various entities in Puglia, culminating in
the judgement of the European Court in January 2022.
Earlier in the year, the Company
had submitted further documentation in connection with the
Applications to the Italian Ministry of Ecological Transition and
has been awaiting further dialogue with the Ministry regarding the
process going forward.
Once this process is complete, the
Company will assess its options in relation to the Applications and
make an announcement accordingly. If the Company decides to accept
the award of exploration permits, it will seek a partner at the
appropriate time.
As previously announced, there
were a number of changes to the Board of the Company in late
November 2023. Mr Daniel Page and Ms Cecilia Yu were appointed
Executive Directors of the Company and Mr Azib Khan was appointed a
Non-Executive Director of the Company. Mr John Van der Welle, Mr
Peter Hill and Mr Garrick Higgins all resigned from Board with Mr
Daniel Page resigning on 11 March 2024.
Subsequent to these changes to the
Board, the Company has been pursuing new opportunities with the aim
to generate shareholder value, diversify the Company's portfolio of
assets and deliver a pathway to profitability. Further updates on
these endeavors will be provided in due course if
appropriate.
DIRECTORS' REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
1. DIRECTORS
The Directors of the Company at
any time during or since the half-year are:
Non-Executive
Mr Andrew Draffin
Non-Executive Director
Mr Azib Khan (appointed 27
November
2023)
Non-Executive Director Mr John van der Welle (resigned 27 November
2023)
Non-Executive Director Mr Garrick Higgins (resigned 27 November
2023)
Non-Executive Director
Executive
Ms Cecila Yu (appointed 27
November
2023)
Executive Director Mr Daniel Page (appointed 27 November 2023,
resigned 11 Executive Chairman March 2024)
Mr Peter Hill (resigned 27
November 2023)
Executive Director
2. SUBSEQUENT EVENTS
On 2 February 2023 Mr Daniel Page and Ms Cecilia Yu were issued with 100,000,000
fully paid ordinary shares in the Company at an issue price equal
to the last placing price of 0.06 pence for a total consideration
of £60,000 each. The Shares are voluntarily escrowed for 90 days.
The share issue will preserve the cash position of the Company and
is in recognition of the below market rate remuneration for the
Executive Directors.
Mr Andrew Draffin was also be issued
with 33,333,333 Shares in the Company at an issue price equal to
the last placing price of 0.06 pence, for a total consideration of
£20,000 with an escrow period of 90 days. The Shares were issued as
full and final settlement of unpaid compensation relating to
services provided to the Company outside his role of Non-Executive
Director to 31 December 2023.
The Board also resolved to issue
options to both the Executive and Non-Executive Directors as
outlined below.
The issued options have the
following performance and time-based vesting conditions
proportional to the number of options issued to each Director as
outlined below.
1. 20% of
options issued vest if the market capitalisation of the Company
grows by 50% within 1 year from date of issue;
2. 20% of
options issued vest if the market capitalisation of the Company
grows by 100% within 1 year from date of issue;
3. 20% of
options issued vest if the market capitalisation of the Company
grows by 150% within 1 year from date of issue;
4. 20% of
options issued vest if the market capitalisation of the Company
grows by 200% within 1 year from date of issue; and
5.
Remaining 20% of options issued vest in equal instalments over 5
years from date of issue.
All options have an expiry of 10
years from date of issue with an exercise price of equal to a 50%
premium to the 7-day VWAP to 31 December 2023 being 0.0645 pence.
No options have met their vesting conditions at the date of this
report.
Mr Daniel Page resigned from his
position as Executive Director and Chairman of the Company on 11
March 2024.
The Company announced a
partnership agreement with Cynergy East Med LLC on 26 January 2024
which was subsequently mutually terminated on 12 March 2024
following the resignation of Mr Daniel Page.
The Company is also in open
negotiations with a number of counter parties around the potential
acquisition of complementary and in some cases diversified assets
and continues to seek a partner for it Namibian licence. All
discussions are preliminary and non-binding at the date of this
report.
3. AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION
307C OF THE CORPORATIONS ACT 2001
The lead auditor's independence
declaration is set out on page 4 and forms part of the Directors'
Report for the 6-month period ended 31 December 2023.
Signed in accordance with a
resolution of the Directors
Andrew Draffin
Director and Company
Secretary
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
These consolidated financial statements and notes
represent those of Global Petroleum Limited and Controlled Entities
(the "Group").
|
|
Group
For the six months ended
31
December
|
|
Note
|
2023
US$
|
2022
US$
|
Other income
|
4
|
305,799
|
-
|
Employee benefits expense
|
|
(16,401)
|
(186,188)
|
Administrative expense
|
|
(200,966)
|
(376,821)
|
Other expenses
|
|
(77,146)
|
(61,097)
|
Share based payments
|
|
-
|
(47,027)
|
Depreciation and amortisation expense
|
|
(9,718)
|
(1,720)
|
Exploration and business
development expenses
|
6
|
(10,248)
|
(16,566)
|
Foreign exchange gain (loss)
|
|
2,007
|
(9,022)
|
Results from operation activities
|
|
(6,673)
|
(698,441)
|
Finance income
|
|
3,509
|
2,822
|
Net finance income
|
|
(3,164)
|
(695,619)
|
Loss before income tax
|
|
(3,164)
|
(695,619)
|
Tax benefit (expense)
|
|
-
|
-
|
Loss for the period
|
|
(3,164)
|
(695,619)
|
Earnings per share
|
|
|
|
From continuing and discontinued
operations
|
|
|
|
Basic earnings per share
(cents)
|
|
(0.0002)
|
(0.0700)
|
Diluted earnings per share
(cents)
|
|
(0.0002)
|
(0.0700)
|
The accompanying notes form part of these financial
statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT
31 DECEMBER 2023
|
|
Group
|
|
|
31 December
|
30 June 2023
|
Note
|
2023
US$
|
US$
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
|
|
597,365
|
356,389
|
Trade and other receivables
|
|
28,810
|
35,301
|
Total current assets
|
|
626,175
|
391,690
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
|
-
|
9,719
|
Other assets
|
|
130,050
|
190,083
|
Exploration and evaluation
assets
|
6
|
1,790,138
|
1,724,039
|
Total non-current assets
|
|
1,920,188
|
1,923,841
|
Total assets
|
|
2,546,363
|
2,315,531
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Trade and other payables
|
|
23,326
|
89,894
|
Provisions
|
|
-
|
259,751
|
Total current liabilities
|
|
23,326
|
349,645
|
Total liabilities
|
|
23,326
|
349,645
|
Net assets
|
|
2,523,037
|
1,965,886
|
Equity
|
|
|
|
Issued capital
|
7
|
44,903,846
|
44,343,531
|
Reserves
|
|
854,227
|
854,227
|
Accumulated losses
|
|
(43,235,036)
|
(43,231,872)
|
Total equity
|
|
2,523,037
|
1,965,886
|
The accompanying notes form part of these financial
statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE
SIX MONTHS ENDED 31 DECEMBER 2023
|
Issued Share
Capital
|
Option Reserve
|
Foreign
Currency Translation
Reserve
|
Accumulated Losses
|
Total
|
US$
|
US$
|
US$
|
US$
|
US$
|
Consolidated Group
|
|
|
|
|
|
Six months ended 31 December 2022
|
|
|
|
|
-
|
Balance at 1 July 2022
|
43,474,971
|
678,632
|
570,410
|
(42,390,080)
|
2,333,933
|
Comprehensive income
|
|
|
|
|
|
Loss for the period
|
-
|
-
|
-
|
(695,619)
|
(695,619)
|
Total comprehensive
income/(loss) for
the
period
|
-
|
-
|
-
|
(695,619)
|
(695,619)
|
Transactions with
owners, in their
capacity as owners,
and
other
|
|
|
|
|
|
transfers
|
|
|
|
|
|
Issue of shares
|
924,000
|
-
|
-
|
-
|
924,000
|
Transaction costs
|
(55,440)
|
-
|
-
|
-
|
(55,440)
|
Issue of options
|
-
|
47,027
|
-
|
-
|
47,027
|
Expiry of options
|
-
|
(441,842)
|
-
|
441,842
|
-
|
Total transactions
with owners
and
other transfers
|
868,560
|
(394,815)
|
-
|
441,842
|
915,587
|
|
|
|
|
|
|
Balance at 31 December 2022
|
44,343,531
|
283,817
|
570,410
|
(42,643,857)
|
2,553,901
|
Six months ended 31 December 2023
|
|
|
|
|
-
|
Balance at 1 July 2023
|
44,343,531
|
283,817
|
570,410
|
(43,231,872)
|
1,965,886
|
Comprehensive income
|
|
|
|
|
|
Loss for the period
|
-
|
-
|
-
|
(3,164)
|
(3,164)
|
Total comprehensive
income/(loss) for
the
period
|
-
|
-
|
-
|
(3,164)
|
(3,164)
|
Transactions with
owners, in their
capacity as owners,
and
other
|
|
|
|
|
|
transactions
|
|
|
|
|
|
Issue of shares
|
629,952
|
|
|
|
629,952
|
Transaction costs
|
(69,637)
|
|
|
|
(69,637)
|
Total transactions
with owners
and
other transactions
|
560,315
|
-
|
-
|
-
|
560,315
|
|
|
|
|
|
|
Balance at 31 December 2023
|
44,903,846
|
283,817
|
570,410
|
(43,235,036)
|
2,523,037
|
The accompanying notes form part of these financial
statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX
MONTHS ENDED 31 DECEMBER 2023
|
Group
For the six months ended 31
December
|
|
2023
US$
|
2022
US$
|
Cash flows from operating activities
|
|
|
Interest received
|
3,509
|
2,822
|
Payments to suppliers and
employees
|
(296,320)
|
(699,883)
|
GST/VAT refunds received
|
3,771
|
3,110
|
Net cash (used in) operating activities
|
(289,040)
|
(693,951)
|
Cash flows from investing activities
|
|
|
Payments for exploration and
business development expenditure
|
(30,299)
|
(285,377)
|
Net cash (used in) investing activities
|
(30,299)
|
(285,377)
|
Cash flows from financing activities
|
|
|
Proceeds from issue of shares
|
629,952
|
924,000
|
Payments for capital raising
costs
|
(69,637)
|
(55,440)
|
Net cash provided by financing activities
|
560,315
|
868,560
|
Net increase in cash held
|
240,976
|
(110,768)
|
Cash and cash equivalents at
beginning of financial year
|
356,389
|
1,139,775
|
Cash and cash equivalents at end of
financial year
|
597,365
|
1,029,007
|
The accompanying notes form part of these financial
statements.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIALS &
STATEMENTS FOR THE SIX MONTHS ENDED 31 DECEMBER
2023
Global Petroleum Limited ("Global" or the "Company")
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 2023 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 2023 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 2023 ('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 28 March 2024. 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 2023.
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 2023.
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 Group has no source of operating revenue and
settles its expenditure obligations from existing cash resources.
It generated a loss of US$3,164 (31 December 2022: loss of
US$695,619) and had net cash outflows from the operating activities
of US$289,040 (31 December 2022: net cash outflows of US$693,951)
for the half-year ended 31 December 2023. As of that date, the
Group had net assets of US$2,523,037 (30 June 2023: US$1,965,886)
and cash assets of US$597,365 (30 June 2023: US$356,389). 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 Director have a reasonable
expectation that one or more of these actions will be achieved and
note a successful equity placing in the reporting period which
raised gross proceeds of approximately $0.630 million (half-year
ended 31 December 2022: GBP0.924 million).
The Company is also pursuing other commercial
opportunities with an intention to build a diversified portfolio of
assets. Discussions with counter parties are ongoing with a number
of potential counterparties at the date of this report.
Accordingly, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future, and therefore the
Directors continue to adopt the going concern basis of accounting
in preparing the financial statements. The financial statements do
not include any adjustments relating to the classification of
assets including Exploration and Evaluation assets, or the
recoverability of asset carrying values, or to the amount and
classification of liabilities, which might result should the Group
be unable to continue as a going concern.
Application of New
and
Revised Accounting
Standards
The Group has adopted all of the new, revised or
amending Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ("AASB") that are mandatory
for the current reporting period.
Any new, revised or amending Accounting Standards or
Interpretations that are not yet mandatory have not been early
adopted.
|
31 December 2023
|
31 December 2022
|
|
US$
|
US$
|
Write off of provision for annual leave
|
259,751
|
-
|
Refund from Italy in relation to its applications
|
46,048
|
-
|
|
305,799
|
-
|
Note 5
|
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.
Name of
subsidiary
|
Principal place of
business
|
Ownership interest held by the
|
|
|
31 December 2023
|
30 June 2023
|
|
|
(%)
|
(%)
|
Global Petroleum Exploration Limited
|
United Kingdom
|
100
|
100
|
Global Petroleum Namibia Limited
|
British Virgin Islands
|
100
|
100
|
Note 6
|
Exploration and
evaluation assets
|
|
6 months to 31 December 2023
|
12 months to 30
June 2023
|
|
US$
|
US$
|
Balance at beginning of period
|
1,724,039
|
1,291,599
|
Expenditure capitalised during the period
|
66,099
|
432,440
|
Expenditure written off during the period
|
-
|
-
|
Balance at end of
period
|
1,790,138
|
1,724,039
|
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 2022: nil).
An amount of US$10,248 (31 December 2022: US$16,566)
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 ran 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 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. In April
2022 the Company announced that the Namibian authorities had
granted a one year extension to the Initial Exploration Period
("IEP"), from September 2022 to September 2023.
In August 2023 the MME gave approval for the Company
and its partners to proceed to the First Renewal Period ("FRP") of
Walvis Basin licence PEL0094, with a duration of two years from
September 2023 to September 2025. The work commitment for the FRP
is to acquire, process and interpret 2,000 kms of 3D seismic data
(the "3D Seismic") - carried over from the IEP and to drill a well
contingent upon the results of interpretation of the 3D Seismic.
The original well commitment for the FRP - as specified in the
Petroleum Agreement for PEL0094 - was firm, rather than
contingent.
At the beginning of each licence
period, the Company and its partners are obliged to issue a
guarantee, which is linked to the specified minimum exploration
expenditure of the firm work commitment. The precise quantum is
currently being negotiated between Global and the Ministry with the
matter expected to be resolved in April 2024.
No adjustments relating to the classification of the
Exploration and Evaluation Assets, or the recoverability carrying
value has been made that might result should the Group be unable to
continue as a going concern. Refer Note 3 - Going Concern for
further details around going concern.
Exploration commitments on the
Company's exploration tenements are detailed above and in Note
11.
|
31 December
2023
|
30 June
2023
|
|
US$
|
US$
|
1,711,779,910 fully paid ordinary
shares (30 June 2023: 1,040,113,244) fully paid ordinary
shares
|
44,903,846
|
44,343,531
|
|
44,903,846
|
44,343,531
|
The Group has authorised share
capital amounting to 1,711,779,910 ordinary shares.
(a) Ordinary
Shares
|
6 months to 31 December 2023
|
12 months to 30 June 2023
|
|
No.
|
US$
|
No.
|
US$
|
Balance at beginning of period
|
1,040,113,244
|
44,343,531
|
811,541,816
|
43,474,971
|
Shares issued during the period
|
671,666,666
|
629,952
|
228,571,428
|
924,000
|
Less: Transaction costs
|
-
|
(69,637)
|
-
|
(55,440)
|
Balance at end of
period
|
1,711,779,910
|
44,903,846
|
1,040,113,244
|
44,343,531
|
|
|
|
|
|
|
|
|
(b) Options
|
6 months to 31 December 2023
|
12 months to 30 June 2023
|
|
Number of
options
|
Weight average exercise
price
|
Number of
options
|
Weighted average exercise
price
|
|
|
US$
|
|
US$
|
Balance at beginning of period
|
29,000,000
|
0.0111
|
27,100,000
|
0.0214
|
Options issued during the period
|
|
|
10,000,000
|
0.0050
|
Options expired during the period
|
|
|
(8,100,000)
|
0.0380
|
Balance at end of
period
|
29,000,000
|
0.0111
|
29,000,000
|
0.0111
|
|
|
|
|
|
|
|
|
|
|
(c)
Warrants
|
6 months to 31 December 2023
|
12 months to 30 June 2023
|
|
Number of
warrants
|
Weight average exercise
price
|
Number of
warrants
|
Weighted average exercise
price
|
|
|
US$
|
|
US$
|
Balance at beginning of period
|
512,063,492
|
0.0104
|
397,777,778
|
0.0110
|
Warrants issued during the period
|
250,000,000
|
0.0013
|
114,285,714
|
0.0084
|
Warrants expired during the period
|
(397,777,778)
|
-
|
-
|
-
|
Balance at end of
period
|
364,285,714
|
0.0058
|
512,063,492
|
0.0104
|
|
|
|
|
| |
Note 8
|
Operating
Segments
|
Africa - the Group currently holds prospective oil
and gas exploration interests offshore Namibia.
(a)Segment
information
|
|
|
|
|
(i)Segment
performance
|
|
|
|
|
|
|
|
|
|
|
Africa
|
Consolidated
|
|
2023
|
2022
|
2023
|
2022
|
|
US$
|
US$
|
US$
|
US$
|
For the six months
ended 31 December
|
|
|
|
|
Segment
revenue
|
|
|
|
|
External revenue
|
-
|
-
|
-
|
-
|
Total revenue
|
-
|
-
|
-
|
-
|
Segment result
|
|
|
|
|
Segment Result
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
Interest income
|
-
|
-
|
3,509
|
2,822
|
Net foreign exchange gain (loss)
|
-
|
-
|
2,007
|
(9,022)
|
Other income
|
-
|
-
|
305,798
|
-
|
Corporate and administration costs
|
-
|
-
|
(314,478)
|
(689,419)
|
Loss for the period
before tax
|
-
|
-
|
(3,164)
|
(695,619)
|
Income tax benefit (expense)
|
-
|
-
|
-
|
-
|
Loss for the 6
months period
|
-
|
-
|
(3,164)
|
(695,619)
|
|
|
|
|
|
(ii)Segment assets and liabilities
|
|
|
|
|
|
Africa
|
Consolidated
|
|
31 December 2023
|
30 June 2023
|
31 December 2023
|
30 June 2023
|
|
US$
|
US$
|
US$
|
US$
|
Assets
|
|
|
|
|
Segment assets
|
1,790,138
|
1,724,039
|
1,790,138
|
1,724,039
|
Unallocated assets
|
-
|
-
|
756,225
|
591,492
|
Consolidated assets
|
1,790,138
|
1,724,039
|
2,546,363
|
2,315,531
|
Liabilities
|
|
|
|
|
Segment liabilities
|
3,500
|
7,000
|
23,326
|
7,000
|
Unallocated liabilities
|
-
|
-
|
-
|
342,645
|
Consolidated liabilities
|
3,500
|
7,000
|
23,326
|
349,645
|
|
|
|
|
|
Acquisition of non-current assets,
including capitalised
|
-
|
432,440
|
-
|
432,440
|
Note 9
|
Share based
payments
|
The aggregate share-based payments for the six
months ended 31 December 2023 are set out below:
|
Six months ended 31 December
2023
|
Six months ended 31 December
2022
|
|
Number
|
Weighted average exercise
price
|
Number
|
Weighted average exercise
price
|
|
|
US$
|
|
US$
|
Options outstanding
as at 1 July
|
29,000,000
|
0.0111
|
27,100,000
|
0.0000
|
Options issued during the period
|
-
|
-
|
10,000,000
|
0.0050
|
Options expired during the period
|
-
|
-
|
(8,100,000)
|
0.0380
|
Options outstanding
as at 31 December
|
29,000,000
|
0.0111
|
29,000,000
|
0.0111
|
The following share-based payment arrangements were
in existence during the current reporting period:
|
Number
|
Grant Date
|
Expiry
Date
|
Exercise
Price
|
Fair value at grant
price
|
Vesting
Period
|
(i)
Options Granted
|
19,000,000
|
7
January 2021
|
21
January 2026
|
US$0.0143
|
441,842
|
N/A
|
(ii)
Options Granted
|
10,000,000
|
6
December 2022
|
6
December 2027
|
US0.005
|
47,027
|
N/A
|
Options were valued using the Black-Scholes model.
Where relevant, the expected life used in the model has been
adjusted based on management's best estimate of
the effects of non-transferability of exercise restrictions.
Expected volatility is based on the historical share price
volatility of the Company's ordinary shares over the reporting
period.
|
Number
|
Share price at grant
date
|
Expiry
Price
|
Expected
volatility
|
Option
life
|
Risk-free interest
rate
|
|
|
US$
|
US$
|
|
|
|
Options Granted
|
19,000,000
|
0.013
|
0.014
|
160%
|
5
years
|
1.49%
|
Options Granted
|
10,000,000
|
0.439
|
-
|
133%
|
5
years
|
1.49%
|
Note 10
|
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 11
|
Capital and Joint
Venture Commitments
|
(a) Exploration
expenditure commitments
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
In August 2023, the MME gave approval for the
Company and its partners to proceed to the First Renewal Period
("FRP") of Walvis Basin licence PEL0094, with a duration of two
years from September 2023 to September 2025. The work commitment
for the FRP is to acquire, process and interpret 2,000 kms of 3D
seismic data (the "3D Seismic") - carried over from the current
Initial Exploration Period and to drill a well contingent upon the
results of interpretation of the 3D Seismic. The original well
commitment for the FRP - as specified in the Petroleum Agreement
for PEL0094 - was firm, rather than contingent.
Global Petroleum Namibia Limited has a 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.
Note 12
|
Subsequent
Events
|
On 2 February 2023 Mr Daniel Page and Ms Cecilia Yu were issued with 100,000,000
fully paid ordinary shares in the Company at an issue price equal
to the last placing price of 0.06 pence for a total consideration
of £60,000 each. The Shares are voluntarily escrowed for 90 days.
The share issue will preserve the cash position of the Company and
is in recognition of the below market rate remuneration for the
Executive Directors.
Mr Andrew Draffin was also be issued
with 33,333,333 Shares in the Company at an issue price equal to
the last placing price of 0.06 pence, for a total consideration of
£20,000 with an escrow period of 90 days. The Shares were issued as
full and final settlement of unpaid compensation relating to
services provided to the Company outside his role of Non-Executive
Director to 31 December 2023.
The Board also resolved to issue
options to both the Executive and Non-Executive Directors as
outlined below.
The issued options have the
following performance and time-based vesting conditions
proportional to the number of options issued to each Director as
outlined below.
6. 20% of
options issued vest if the market capitalisation of the Company
grows by 50% within 1 year from date of issue;
7. 20% of
options issued vest if the market capitalisation of the Company
grows by 100% within 1 year from date of issue;
8. 20% of
options issued vest if the market capitalisation of the Company
grows by 150% within 1 year from date of issue;
9. 20% of
options issued vest if the market capitalisation of the Company
grows by 200% within 1 year from date of issue; and
10. Remaining 20%
of options issued vest in equal instalments over 5 years from date
of issue.
All options have an expiry of 10
years from date of issue with an exercise price of equal to a 50%
premium to the 7-day VWAP to 31 December 2023 being 0.0645 pence.
No options have met their vesting conditions at the date of this
report.
Mr Daniel Page resigned from his
position as Executive Director and Chairman of the Company on 11
March 2024.
The Company announced a partnership
agreement with Cynergy East Med LLC on 26 January 2024 which was
subsequently mutually terminated on 12 March 2024 following the
resignation of Mr Daniel Page.
The Company is also in open
negotiations with a number of counter parties around the potential
acquisition of complementary and in some cases diversified assets
and continues to seek a partner for it Namibian licence. All
discussions are preliminary and non-binding at the date of this
report.
DIRECTORS' DECLARATION
In accordance with a resolution of
the Directors of Global Petroleum Limited, the Directors of the
Company declare that:
1. the
financial statements and notes, as set out on pages 5 to 12, 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
AASB 134: Interim Financial Reporting; and
(b)
give a true and fair view of the financial
position as at 31 December 2023 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
2001from the Chief Executive Officer and Chief Financial
Officer.
Director
Mr Andrew Draffin
-ends-