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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Global Petroleum Limited | LSE:GBP | London | Ordinary Share | AU000000GBP6 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.0025 | -3.13% | 0.0775 | 0.075 | 0.08 | 0.08 | 0.0775 | 0.08 | 11,302,939 | 15:27:53 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 0 | -1.28M | -0.0010 | -0.80 | 1.03M |
From May 2019 to May 2024
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:
Hot Features
Premium
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)
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