RNS Number:7745L
Global Petroleum Ltd
03 May 2005

3 May 2005

Global Petroleum Limited ('Global')

ANNOUNCEMENT RE: FALKLAND OIL AND GAS LIMITED

Global Petroleum Limited (AIM / ASX: GBP), an Australian-based oil and gas
exploration company, advises that Falkland Oil and Gas Limited (FOGL) made the
attached release on the 3rd of May 2005.

This announcement suggests that Global's 16.06% shareholding (i.e. 12.848
million shares) in FOGL could potentially have quite significant value for
Global shareholders. A FOGL share price of #1/share translates to approximately
19c per Global share (GBP 8p/Global share).

Further information about FOGL's Falkland Island Oil & Gas Project can be found
in a presentation that FOGL has posted on its website www.fogl.co.uk

Further information:

Global Petroleum Limited
Dr John Armstrong, Executive Chairman +61 (0) 7 3211 1122

Bell Pottinger Corporate & Financial
Nick Lambert +44 (0) 7811 358 764

Tuesday 3rd May 2005

Falkland Oil and Gas Limited

("FOGL" or "the company")

Significant increase in number of identified leads

Enhanced possibility of a new petroleum province
in the South and East Falkland Basins

FOGL announces that it has completed its current 9,450 km 2D seismic data
acquisition programme over most of its licence area. The initial interpretation
of the preliminary processed records from the survey has proved encouraging and
greatly exceeds the Company's initial expectations.

The programme has indicated a larger and more diverse project than originally
anticipated and has identified numerous possible drill targets, with indications
that some could potentially be of significant size.

FOGL has now identified approximately 130 leads,(1) far in excess of the eight
(8) leads identified at the time of its AIM IPO in October 2004. Given the
positive results of the survey, FOGL now plans to increase the scope of its
exploration programme far beyond that envisaged at the time of the IPO.

Key points:

* Approximately 130 leads identified, a number of which appear capable of
containing recoverable reserves in excess of 200 million barrels

* FOGL now represents a larger and more diverse project than originally
anticipated

* Encouraging signs that oil and gas could be present

* Further work is planned targeting defining 20 drillable prospects by
about mid-2006

* FOGL is targeting drilling of the first well in 2007

* Already an enhanced possibility of project success

* Licences cover area equivalent to the North Sea Southern Gas Basin and
Central Graben

* Cash position of #10.9 million as at 31 March 2005. FOGL is evaluating
its funding requirements and the source of funds for the increased exploration
programme

John Armstrong, Executive Chairman of FOGL, said:

"In my opinion, this is the most exciting project I've seen for many years. The
results of the 2D seismic are encouraging; the number of leads identified has
far exceeded our most optimistic estimates and we believe it has greatly
enhanced FOGL's prospects. It is clear that the scope of work needed to maximise
the potential of our acreages has increased significantly.

"It is important to remember that, while the leads identified to date each have
seismic expression which indicates the possible presence of a drillable
prospect, when fully mapped, and with the benefit of further data, such leads
may not have all the characteristics necessary to become drillable prospects.
Nevertheless, the large number of leads distributed across several playtypes
suggests that a number of the leads could become technically sound and
potentially economically viable drill prospects. It is the Company's goal to
identify and define 20 such prospects in the immediate future so that they can
be considered for drilling in 2007.

"We have made a lot of progress in the six months since our AIM IPO and the
results to date have been remarkable. Although there is a long way to go, it now
seems quite possible that the Falkland Islands could become a new petroleum
province by the end of the decade."

Hydrocarbon Indicators

Initial interpretation of the new data gives considerable cause for optimism.
The preliminary results of the survey identify numerous Direct Hydrocarbon
Indicators (DHI's) pointing to the presence of working petroleum systems. The
DHI's include gas chimneys, amplitudes and possibly gas hydrates. The leads are
large and diverse, with some leads possibly covering areas of 300 to 500 sq km,
sufficient to hold large reserves of oil or gas. There is also a wide range of
play types with several different styles identified.

Exploration Programme & Funding Arrangements

FOGL plans to conduct further seismic surveys targeting all the leads but with
particular emphasis on the approximately 50 most promising. The aim will be to
develop 20 high quality, technically sound and potentially economically viable
drilling prospects. The Company then intends to develop a multi-well drilling
programme which may be able to begin in 2007.

Full details of the exploration programme are still to be finalised but given
the increased number of identified leads the company expects to expand
significantly the scope of the exploration programme.

Although FOGL had net cash of #10.9 million as at 31 March 2005, the increased
scope of the programme will require additional funding and the Board is
currently considering its options. A further statement on the funding
arrangements and the full details of the programme will be announced soon.

Potential Resources

The extent and depth of the basin suggests that, if it exists, the hydrocarbon
resource could be of a major scale. According to estimates by MBA Petroleum
Consultants, an independent consultant, 1,250 billion barrels of oil / oil
equivalent could have been generated in and in the vicinity of FOGL's licences.

Scott Pickford, petroleum engineers, made an independent assessment of the
initial eight (8) leads and concluded that each had the potential to contain
between 200 million and 600 million barrels of recoverable oil(2). It is
expected that Scott Pickford will be contracted to repeat the process and make
an independent judgement on the potential resources indicated by the new data.
Its findings will be announced on completion of the processing and
interpretation which is expected to be in the third quarter of this year.

An overview presentation will be posted on the FOGL website giving a summary of
the results announced here. Technical information including maps and seismic
lines will be posted on the Company's website in the near future.

www.fogl.co.uk

Enquiries:

FOGL

John Armstrong, Executive Chairman + 61 (0) 7 3211 1122 (+9 hrs GMT)
David Hudd, Deputy Chairman 07771 893 267

College Hill
Ben Brewerton 020 7457 2020

(1) a 'lead' is a feature that requires further technical appraisal prior to a
decision to drill

(2) P50 recoverable oil as estimated by Scott Pickford, a consultancy
specialising in geology, petroleum engineering and economic analyses, in 2004
(IPO Prospectus)

NOTES TO EDITORS

Falkland Oil and Gas Limited ("FOGL") is an oil and gas exploration company
focused exclusively on opportunities offshore of the Falkland Islands. It was
admitted to London's Alternative Investment Market ("AIM") on 14 October 2004 at
an issue price of 40p. The current major shareholders of FOGL are: Falkland
Islands Holdings plc (18%), Global Petroleum (16%) and RAB Capital plc (31%).

At the time of the admission to AIM, FOGL held a 77.5% interest in seven
offshore production licences covering approximately 33,700 sq km to the south
and east of the Falkland Islands. FOGL holds these licences in a joint venture
with Hardman Resources. In December 2004, FOGL was awarded a 100% licence over
an additional 50,000 sq kms adjacent to its existing licence areas. The 83,700
sq km area held by FOGL is equivalent to 380 North Sea blocks: as large as the
Southern Gas Basin and the Central Graben combined.

www.fogl.co.uk

This information is provided by RNS
The company news service from the London Stock Exchange

END

RNS Number:5538M Falkland Oil and Gas Limited 20 May 2005

Friday 20th May 2005

Falkland Oil and Gas Limited ("FOGL" or "the Company")

Preliminary unaudited results for the period ended 31 March 2005

FOGL is an oil and gas exploration company operating in the undrilled South and East Falkland Basins, potentially a new petroleum province in the South Atlantic. Formed in May 2004, these are FOGL's maiden results following its admission to AIM in October 2004.

Highlights


DURING THE PERIOD FOGL:

extended its licence area by 50,000 sq km through the award of a 100%
owned licence


completed a 9,450km 2D seismic survey, well in excess of the IPO
plan; the results of the survey far exceeded expectations by identifying 130
leads


strengthened the management team with the appointment of a second non-executive director and a full time exploration manager

FURTHER WORK IS PLANNED TO DEFINE UP TO 20 DRILLABLE PROSPECTS BY
mid-2006


CURRENT CASH POSITION OF #11 MILLION; THE COMPANY IS DEBT FREE

FOGL IS EVALUATING ITS FUNDING REQUIREMENTS AND THE SOURCE OF FUNDS for the increased exploration programme

FOGL IS TARGETING DRILLING OF THE FIRST EXPLORATION WELL IN 2007
John Armstrong, Executive Chairman of FOGL, said:

"We have made remarkable progress since last year's IPO. The results of the seismic survey are encouraging and have upgraded the licences by providing direct evidence of the presence of hydrocarbons.

"We are now planning a much enlarged exploration programme with the aim of developing a multi-well drilling plan in 2006, with the possibility of drilling the first exploration well in 2007. In this light, we are evaluating our funding requirements and the source of funds for the increased exploration programme. This includes the option of including another party or parties in the project across some or all of the licence acreage.

"This is the most exciting project I've been involved in for some years and there is a real chance that the Falkland Islands will become a new petroleum province."

Enquiries:


FOGL

Falkland sounds upbeat note
James Rossiter, Evening Standard
20 May 2005
THE head of Falkland Oil and Gas was today gushing with confidence about prospects within the old 200-mile exclusion zone mapped out around the islands during Britain's 1982 war with Argentina.
No drilling is targeted before 2007 yet the chairman of the Aim-listed firm, John Armstrong, said today: 'This is the most exciting project I've been involved in for some years and there is a real chance the Falkland Islands will become a new petroleum province.'
His enthusiasm comes barely a day after City analysts called for executives at Britain's growing number of exploration companies to temper their upbeat statements following the 60% slump in Regal Petroleum's shares on Wednesday.
Regal founder Frank Timis is quitting as chief executive following the dramatic revelation this week that, after a series of drilling tests, it will not be able to extract commercial quantities of oil from its Greek Kallirachi-2 project.
But Falkland deputy chairman David Hudd insisted his firm's prospects for finding oil were on course as he confirmed other oil companies had approached it to help finance the exploration of its 329 blocks.
Falkland is sitting on 11m of cash after raising 12m from its Aim listing last September.
Hudd said: 'I am not saying there is necessarily oil but leads are much better than when we floated the company.
'We started off with eight leads. There are now 130 on which further work could be done - some of which could become a prospect and then we can decide if we will drill.'
Delivering a 293,692 pre-tax loss for its 10 months' trading to 31 March, he added: 'We have looked at other companies in the sector which have attracted adverse publicity and we are certainly not doing anything other than being conservative.'
Falkland's biggest shareholder are funds controlled by RAB Capital, also a big investor in Sudan oil explorer White Nile, due to restart trading on Aim on Monday.
******************
Hope this helps trading on Monday in both FOGL and GBP shares.

why does it drop like a stone,are they too shy to go out and look for oil.

Probably still suffering the Regal Pet setback which has depressed sentiment in the pure exploration companies that have yet to discover the black stuff.

I don't think FOGL are in same category as they now have strong indications from the new leads recently identified from the surveys that needs further and more detailed evaluation by the company's geologists.

This was what dep chairman Hudd said: 'We started off with eight leads. There are now 130 on which further work could be done - some of which could become a prospect and then we can decide if we will drill.'

Very good rise today, up 19%

mmiller555,

Well I thought it was oversold to be honest, so recovering a bit of the lost ground since the Regal Petroleum fiasco IMHO.

MikeM,
any idea on latest news. Mine is, the company is responding correctly to the query, but I am a little bit confused as to why the initial question. I appreciate the Regal fiasco.
If you have the time can you call me tomorrow.
Cheers
C

I fancy this report has all the Majors eying the action offshore Falklands and Kenya when BP says global oil reserves growth stalled in 2004. Another sound reason to be in FOGL and GBP at the moment I think!!


BP says global oil reserves growth stalled in 2004
Tue 14 Jun, 2005 15:09
By Tom Bergin, European Oil and Gas Correspondent

LONDON (Reuters) - Growth in the world's oil and gas reserves stalled last year, a report from oil giant BP showed on Tuesday, bucking a trend that has historically seen new discoveries more than match production.

The BP Statistical Review of World Energy, compiled from official government figures, will reinforce concerns about the ability of global oil supplies to match surging consumption, which grew 3.4 percent in 2004.
The world had 1,188.6 billion barrels of oil reserves at the end of 2004, compared to 1,188.3 billion at the end of 2003, BP, the world's second largest oil firm by market capitalisation, said.

The 0.02 percent growth rate was the lowest since 1990 and compares with a 10-year average above 1.5 percent per annum.

Last year's almost imperceptible rise in oil reserves came despite high prices, which normally help by encouraging new exploration and by making previously uneconomic resources commercial.

Gas fared only slightly better with reserves growing 0.18 percent, but this was the lowest growth rate in over 20 years, and well below the 10-year average of more than 2 percent each year.

The figures contrast with BP's view, regularly voiced by Chief Executive John Browne, that the world is not facing a supply crunch.

However, the data echoes the oil majors' own difficulties in finding oil. Last year, the biggest international firms replaced around 70 percent of the oil and gas they pumped with new finds, analysts said.

Even BP, one of the better explorers in the industry, failed to achieve the 100 percent reserve replacement ratio that shows a firm's resource base is not shrinking.
The report also points to another worrying trend for the oil majors. The gap between their anaemic reserve replacement ratio and an effective 100 percent ratio globally supports investors' fears that the biggest oil companies will lose market share.

Analysts have predicted firms like BP and U.S. rival Exxon Mobil will become increasingly constrained in finding new exploration opportunities in the future because the biggest hydrocarbon reserves look set to be controlled by state-owned oil and gas companies in Russia, Venezuela and the Gulf states.

BP cautioned that pundits have been predicting the imminent depletion of reserves for a century and added that since different governments use different methodologies to calculate proved reserves, it is hard to draw inferences from its review, which is published annually.

mmiller555
Have you looked at Desire Petroleum (DES.L)? They will be drilling in the North Falklands Basin in early 2006. Rig announcement is imminent.
DYOR

regards

Remember the company key assets as follows:

The Companys key assets are:

20% of Kenya Blocks L5, L7, L10 and L11;


16.06% of Falkland Oil and Gas Limited listed on AIM;


10.1% of Falkland Gold and Minerals Limited listed on AIM;


100% of ATP728, Surat Basin, Queensland;


100% of Blocks 57/3, 4, 8 and 9 Ireland;


100% of Blocks 4 and 5 of Area 3 Malta.

Patience is the name of the game with this gem. I am bullish on these and expect some goodness to come from these.

Cheers,


OracleDBA2004

Could be some institutional interest is finally happening on this punt as 250,000 shares were bought at 21p late on Friday afternoon.

mmiller555, this week will be interesting for GBP due to the large buy last friday aft. May be worth buying/averaging down before this gem lifts off.

Up a whopping 8.5% overnight in OZ see:

http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=on&asxCode=GBP#chart

mmiller555, thanks for the wonderful news. Good to see GBP doing well in UK with 10% increase. Goes to show how deflated the shares has been recently....as always, DYOR....

Hi OracleDBA2004,

This punt seems to be catching the imagination of the punters in OZ but is not yet as well known among UK punters.

FOGL is getting most of the attention at mo, but our Chairman John Armstrong runs both companies and remember also that he has put a large sum of his own cash upfront for FOGL to be able to finance further 3D siesmic surveys on the now better identified new leads on the Sth Falklands licence areas.

Once news gets around that GBP has just as exciting plays in other regions (along with among others Dana and Woodside in the offshore Kenya plays), then feel that this wee gem will really take wings.

Patience in this case is a virtue and glad I'm in for what I feel is an exciting ride - come what may and coming from an oil industry background, know the oil majors are watching the action offshore Kenya and Sth Falklands from a not too far distance.

Luck to all.

Mike

Don't know what's caused the jump north today, but now up 16.3% on the day.

Anyone know the reasons for the very welcome lift today?

Cheers,

Mike

From the F00L B.B. which may explain some of today's increase!!

But that isn't the only "Explo" company I've bought in the last 24 hours. I've also bought a pretty large amount of Global Petroleum [GBP].
GBP is also ISAable, being Aussie listed. Global's website is here:
http://www.globalpetroleum.com.au/
It has two main equity assets:
a) a 14% shareholding in Falklands Oil and Gas [12.85 mn shares, worth 14.4mn at current share prices]
b) a 10.1% holding in Falklands Gold & Minerals [worth c 1.9mn]

....and it has licences/agreements in Malta and Ireland and hopes for something in Iraq...but lets more or less ignore those, and say that the shareholdings and these bits are worth about 17mn at present.

Global has just under 170mn shares in issue so, say, at 23p its market cap is 39mn....so what do you get for the other 22mn?

.....you get
a holding of 20% in three blocks L-5, L-7, and L-11 offshore Kenya. In regard to
the fourth Block L-10 which is held by Dana (80% and operator) and Global (20%) the terms of an
extension of the Licence including the work programme are subject to discussion with the Kenya
Government.
In L-5, L-7 and L-11 Global is in a Joint Venture with Woodside (50% and operator in L5 and L7, and
40% and Operator in L11) and Dana Petroleum (E&P) Limited (30% in L5 and L7 and 40% in L11).
The costs associated with Global's 20% equity are carried for all activities including the drilling and
testing of two wells. In August 2004, the Company announced Woodside's intention to continue in
Blocks L5 and L7 at which time Woodside committed to the drilling of the first of the two wells
through which Global's costs are carried.

According to Dana's recently-published plans for drilling in 2006, they expect to drill the Pomboo [L5] and [if Pomboo succeeds] Sockwe [L7] prospects next summer. These are described by Dana as "very large, robust structures" and the Dana prelims noted Both the Pomboo and
Sokwe prospects have the potential to contain over one billion barrels of oil in place.

....and Global is being free-carried though these two wells. What are they worth? Assuming shareholders are effectively paying 22mn for these two wells alone, does this represent value for money?

Well....the two wells sound as if they should be targetting c.600mn bbls gross recoverables.....which would be 120mn net to Global. Lets assume that a find in Kenya would be worth $3 per barrel [perhaps too high....but OTOH this factors in nothing for the rest of the blocks which, in the event of commercial oil, would surely become much more valuable].....say $360mn, or 200-220mn to Global......

....which suggests that the market has no more than about a 10% chance of success attached to these wells at present [22mn/220mn]. Obviously, if both wells fail, we would be looking at the share price potentially halving.....but, OTOH, if even one succeeds then a substantial rise in the shares would result.

My hunch is that this is a reasonable bet.....not one to put the farm on - but IMO they've got a decent shot at a high return over the next year or so [and perhaps more to come from the the rest of Kenya or the Falklands later?]

There's an April interview with the Chairman here: http://www.wallstreetreporter.com/linked/GLOBALPETROLEUMLIMITED.html

FWIW

emptyend

In today for a few.

Latest quarterly report posted on ASX overnight.

Date in headrer appears wrong, dated 28th July 2005.

October 2005 Company Update

It's nearly 16mb file so patience will pay off dividends.

Now here is one for the future people.

From boyant on advfn

And well worth a read.

ANNUAL REPORT 2005

Global withdraws from L-10 and L-11 in offshore Kenya

"With respect to L-10, Dana as operator and on behalf of Global had been negotiating since September 2004 the terms of an extension to the block beyond the expiry date of December 2004, but was unable to reach agreement with the Kenyan Government"

"Global retains a 20% equity position in each of Blocks L-5 and L-7 where its share of the cost of two wells is fully carried. Woodside is the operator with 50% of L-5 and L-7 and is actively seeking a drilling rig. The CEO of Woodside, in his presentation to North American Investors in September 2005, noted that the first well is scheduled for the second or third quarter of 2006. Woodsides mapping of seismic data acquired in the Companys Kenya licences indicates that L-5 and L-7 are two very prospective areas having over 30 leads and prospects with a number being capable of holding several hundred million barrels of oil."

GBP fortunes changing perhaps with all buys today?

Is anyone still holding onto these? Any prospects? I'm still holding mine

Up 2.25p. RNS today announces that the JV will be drilling the first oil exploration well in offshore Kenya in October.

WOODSIDE COMMITS TO SECOND EXPLORATION WELL IN JOINT VENTURE WITH GLOBAL AND DANA IN OFF-SHORE KENYA

No looking back now.

Great prospects over all here imo.

"The Joint Venture is scheduled to drill the first of the two wells in Block L-5
beginning October 2006, with the timing dependent on met-ocean conditions and
the arrival of the rig in Kenya. "

SWW, that's good news by the sound of it, will definitely keep watching and waiting.

I like the fact that GBP enables you to have a crack at FOGL for free as well.

Wish I'd thought a bit harder about this stock while it was sub-20p, though!!

soul traders, it's easy to loose sight of the apparent sleepers when not much is going on that's newsworthy.

Sub 20 was very nice, I believe that this is still cheap now bearing in mind the potential.

You may be right about the potential. Alas I am fully invested elsewhere at the mo.

The trend since December may finally convince me, though.

soul - there is plenty of time before the drill ship gets on site, so take your time deciding what you want to do.

Who is to say your current investments are not as good or even better?

Thanks SWW - Time will tell :o)

Thought I would bring this over from TMF as it clarifies yesterdays RNS.

Thanks to tournesolf for his efforts.

Starts "tournesolf

After yeserday's rns I called Global's PR outfit to obtain clarification. They contacted Global overnight and have just called me back with the results.

According to Global's chairman; Woodside and the other JV partners are now committed to drilling 2 wells, one each in L5 and L7, both in the 4th quarter of 2006.

The apparent ambiguity in the RNS was simply an inadvertent punctuation error.

The deadline for drilling L7 as laid out in the terms of the PSC is 2008. But Woodside et al have decided to get on with it without hanging around.

+++++++++++++++++++++++++++++

The decision to bring forward the L7 drilling is a significant assertion of confidence. (as well as a reflection of the tightness of the rig market) which has to be construed as a GOOD THING

+++++++++++++++++++++++++++++

Well done to Global's PR people (bell Pottinger) for being so responsive. We criticise their profession from time to time, so we should not be shy of giving them credit when it is called for.


RG "


Well, I did what I said I wouldn't and topped up a few more.

That will do now though.

Good rise toady as well.

soul* - when you get here! .... just had a look at the chart and now from memory, there was good support at about 27 (hit twice recently and rebounded) but a resistance at 28 ...... one was 25 mda and the other 50 and both rising, but can't remember which way round ...... Current mid is 28, so there is an argument for waiting until it breaks back upwards

Cynic, you beat me to it !! :o)

Okay, to bring everybody up to date, I just posted the following on "Driver's Tips".

Guten Tag from Frankfurt!

Today's tip for hole-in-the-ground fans: Global Petroleum (GBP). Mkt Cap around 50 mil, holds 14% of FOGL shares (in itself worth 16 mil at today's 125p a share), and has an exciting portfolio including prospects in Malta and offshore Ireland. The most important bit is offshore Kenya, in JV with Woodside and Dana, in which GBP holds 20%. Multiple leads in two blocks, some capable of containing multiple hundred-million to one billion bbls in place.

A drilling rig has been secured and GBP will be free-carried for the first well in each of the two blocks. Drilling is hoped to take place in Oct 2006.

Chart showed a nice steady climb in the last few months; the last few days of upheaval have caused a retrace so the shares could be a real bargain.

WDIK, IMO, PDYOR, etc.

I am about to dip a toe in the water. Opinions welcomed, especially on the GBP thread. Ta.

Cynic,

Good point re the chart - I think you have observed correctly. Am not a TA expert, but I wonder if the retrace of the recent pronounced peak up to 36p and down to 25p can be in part regarded as an exception due to the recent prevailing market panic.

The SP has ticked up again today and we are at
GBP Bid: 27p Offer: 29p Change: 1.25 (my broker's indicative spread).

I have been sufficiently convinced to get in with an initial 5,000 shs just now. Am awaiting order processing for a price.

EDIT Got in at 29p plus costs.

movement .... yes in part, though of course MDA by definition moves daily!

Well, the SP hasn't done much in 3 months (unlike most other things in my portfolio, which have descended).

RNS out today:

Global Petroleum Ltd - Repsol joins Kenya JV
RNS Number:0558I
Global Petroleum Ltd
24 August 2006


24 August 2006

Global Petroleum Ltd

Repsol joins global Joint Venture for offshore Kenya drilling

Global Petroleum Ltd reports that Repsol Exploracion S.A. (a wholly owned
subsidiary of Spanish based company Repsol YPF - an integrated oil and gas
company which produces over 1 million barrels of oil equivalent per day) has
joined the Joint Venture which will drill two wells offshore Kenya in the last
quarter of this year, one each in Blocks L5 and L7. Holdings in the L5 and L7
Joint venture are now:

* Woodside 30% (and operator);
* Dana 30%
* Repsol 20%
* Global 20%

The costs associated with Global's 20% in L5 and L7 are carried for all
activities through the drilling of the first well in each of these areas.
Woodside and Repsol earn their farm-in equity when these two wells are drilled.

The Joint Venture has already contracted a rig for drilling. The first of the
two wells is likely to be in L5 on the Pomboo prospect and this is scheduled to
begin in October this year. The second well will be drilled in Block L7 and is
likely to be on the Sokwe prospect.

For further information, refer also to Global's releases dated 16/3/06 and
4/5/06 and Global's website: www.globalpetroleum.com.au

Further information

Global Petroleum Ltd
John Armstrong, Executive Chairman + 61(0) 7 3211 1122

Bell Pottinger Corporate & Financial
Nick Lambert +44 (0)20 7861 3232

www.globalpetroleum.com.au

On the positive side, however, they have a rig and drilling on the first prospect will begin in October. I'm happy.

Offshore Kenya,eh?

I was on the first ever offshore well there (as far as I'm aware) just over 20 years ago. Challenging as far as I remember!

Did you find any hydrocarbons, though?

Big Al, do you know what vessel is drilling for them?

Big Al

Please cast your eyes over this and tell me if you have an opinion you can share?


Taken from TMF poster is SW10 who knows a thing or two.

Humm...

(A cynic writes)

The essence of this remains: "Our vessel was never actually designed for exploration drilling operations" - to which you might add: "but we thought we'd give it a go because we get to shake-down our vessel whilst someone else pays the bills."

It's too new

Before arriving on-site with our research-cum-exploration vessel, it will have drilled one test hole with a riser and BOPs; presumably have run one cement job and had its first experience of wireline operations. Ambitious? Well, even new exploration rigs have to start somewhere. But at least they're designed for purpose. Chikyu hasn't even got a track-record in drilling research holes.

It's the wrong design

So, how are things going? Current (Aug 14th) quotes for the shakedown include "eventful and exciting", "there have been many technical challenges" (see http://www.jamstec.go.jp/chikyu/eng/news/20060814.html). Not surprising perhaps; that's what shakedowns are for after all. And how many of these "eventful and exciting challenges" will be ironed out before the vessel starts drilling in earnest in Kenya?

(It's also notable that all the reported discussion appears to be centred on research rather than getting-oil-out-the-ground.)

The conversion remains unproven

And what's this from JAMSTEC? "The Chikyu will conduct its first riser drilling as well as targeting to 2,200 meter below the sea floor, the deepest scientific drilling depths through the sea floor ever recorded in the history." Eh? Shome mishtake shurely? I make that about 7200ft. It might be a record in the scientific drilling books (not my area), but I don't think that's going to impress many on a deepwater drillship.

The downright experimental approach to all this becomes more evident when you note that the Kenya and Australia jaunts are described thus: "Subsequent shakedown cruises for operational testing ... are being planned in cooperation with other institutions to enable Chikyu personnel to master as much drilling technology as possible."

The crewing will be a problem

Er, master the drilling technology???

I'd thought the drilling will be done the experienced Norwegians from Seadrill. But will it? Seadrill have only got one drillship; the West Navigator. What are they going to do -- pull the crew (and more importantly, the drillers) from there? I don't suppose Shell would be much amused by that approach. So where's the experience coming from to drill a decent exploration well with a brand-new rig?

SNAFUs will abound

SW10's Law is going to apply in spades on this one. As well as the standard contributors of Mother Nature, geology, people and technology the additional ingredients as I see them in this case include:

* Brand-new vessel;
* Vessel backward-converted to exploration vessel (I imagine this includes addition of shale shakers, wireline and mud-logging units, cement units, additional staroage space (mud, cement etc). I would mention riser-handling equipment too, but I seem to recall Chikyu had been built for that?
* Lack of vessel experience on the drill floor
* Lack of exploration experience on the drill floor?
* Culture clash (research vs. exploration)
* Culture clash (anyone for Aussies vs Japanese vs Norwegians?)
* Dual - and conflicting - missions (vessel shakedown vs commercial drilling)

Good luck to all whose money sails in her. I'll stay on the quay for the moment.

SW10

http://boards.fool.co.uk/Message.asp?mid=10130158&sort=whole#10137864

I was on board this till they got the rig!

Apparently it is nearly as big as the Titanic

soul traders

We found nothing of commercial interest. However, we had interesting problems setting anchors, losses in top hole which led to a 2-stage cement job and then some massive pore pressure increases which required a lot of time and effort to deal with. Please bear in mind this was 20 years ago and the well was a complete wildcat. Unocal was the operator and we were not very far offshore. I do remember it was fabulous to crewchange out of Mombasa - I'd spent the previous 2 years in Nigeria!!!

I'll think about this rig thing, sww. I'm a little confused by the above post.

Thanks for replying so far Al.

sww

Followed the links to the Chikyu site. Purpose-built drillship for taking deepsea cores by the look of it. It's definitely got all the mod-cons and wouldn't be difficult to go drilling for oil and gas from what I can see.

There's a lot worse out there, believe me!! That's especially so since utilisation is so high. As for the language thing, my current rig probably has 5 or 6 different nationalities onboard. It's always been that way and not an issue IMO.

Not sure why everyone is so upset.

Al.

Thanks for your reply, it has to be a lack of knowledge that has caused the disenting voices.

I admit I know little about this, there is nothing like having first hand experience in these matters which is why, when I saw you had looked in, I asked for your opinion which I take as being fair and honest.

I was scared out of holding these by some posters elsewhere, but I did not want to leave it at that.

I feel I can now make a more measured approach to the up and coming driling by Woodside in Kenya.

Mind you Woodsides geologists worry me a but too after the debacle at Chinguetti!

My Dentist is just as bad as they are at drilling the wrong places.......

Of course with Dana and now Repsol involved in this operation, I am feeling a little more confident to reenter the fray.

Thank you.

sww

There's never any guarantee, of course, but there are a lot of old rigs out there just now having real teething problems because they were stacked for 2-3 years. Once rig equipment lies unused for even a few months, the chances of getting it back to full use without massive headaches is nil. At least this rig seems new and has done some work. I've no doubt Woodside will have looked it over thoroughly with some experienced rig hands so they should know what they are getting. All that chat about shakers and stuff seems silly talk to me. As for SW10's "Laws" I can't see one that does not apply to every rig going back to drilling after a spell away. I'm tempted to say the guy knows enough to be dangerous and nothing more. ;-))

I seem to have missed the Chinguetti thing. I thought all was well down the west coast.

Does anyone have a link to the acreage offshore Kenya. I tried the government site via Woodside one, but there's nothing indicating the blocks and where they are.

One final word on Kenya - what a current down that coast. ;-0

Kenya acreage slide 8 and 9

Points all taken Big Al.

SW10 is a TMF guru who "knows" a lot.

I am not in a position to question his experience, but I understand what you are saying.

Of course I also need to apply that they are only drilling one hole just now, so there's no rush to get in these, using the industry avarage of 25% the likelyhood is they will not hit anything any way, but that wont write off the licenses.

Falklands update......

Before anyone decides it's time to reassess this stock, I understand FOGL have now closed the Data Room for the Farmee's so there may be something coming soon from that direction.

Chinguetti is another (long) story.

Thx for link

Afternoon all!

Firstly, Big Al, thanks for your many replies and the fascinating and useful firsthand info therein!

Next, I tried to give the Chikyu issue some thought overnight and didn't come up with much, apart from two mildly sceptical points:

1.) Given that drilling is fraught with issues anyway, and that the crew of the Chikyu must be at least a little bit profesional or they'd soon be out of business, it seems that underlining the newness of the vessel is a bit of a red herring. If I'm feeling really cycnical I could say it's an extremely subtle deramp. Look how few shares were sold today already (only about 63K, i.e. peanuts, but the SP is up 6.5%) - it doesn't take much to move this one at present.

2.) I don't know SW10, but I've recently read a lot of posts in which the poster is clearly thinking just a little bit too hard (I've probably written a few myself too). Most of the good examples of this phenomenon can be found on the SEO thread - you know the type, where every little detail and turn of phrase in news releases is examined minutely, until one completely loses sight of what the point was in investing (or in my case re SEO, not investing!).

If the SP had plummeted this morning, I'd have thought about getting out, but since the SP is up two days in a row and I'm within 0.25p of breaking even, I think I'll stick. Have to admit I was feeling slightly torn because I have something else in mind that I'm itching to buy, but a funny feeling tells me that patience with my portfolio will reward me over the coming weeks, as various of my investmets are due to report or drill or do something else exciting.

Lots of green all over my portfolio today, actually!

I have resonably optimistic feelings about GBP - I hope they will be successful in turning those big leads into assets and that ought to put legs on the SP.

SWW - good to see you on this thread too!

What's your negative thought about Ching? Okay, the reserves are about to take a hit. Are you suggesting that HNR & Co. should have done a 4D seismic to maybe establish oil seep rates. Or have they genuinely been unfortunate in hitting a resource whose pressure just happened to drop off sharply when they started extracting the oil (I'm no expert, but I guess that anything can and will go wrong)?

I like your #2, soul traders. ;-))

This business is simple really. We try to buy close to the bottom and sell close to the top. lol

Thanks Big Al, and you're dead right - 'bout time there was some serious action too, after three months in the doldrums!

soul - I'll answer on HNR.

Good call, SWW, had the same thought myself about trying to keep things on-thread :o)

Good article about GBP on oilbarrel.com today.

Extract:

Drilling on the Woodside operated Blocks L5 and L7 is due to start in October. The first well will probably test the Pomboo prospect, where broker KBC Peel Hunt says there is gross potential for 200 to 250 million barrels. This will be most likely be followed by a well on the Sokwe prospect (gross 130-150 million barrels).

These wells will indeed be high risk. The waters are virtually unexplored with the Woodside wells being the first wells in Kenyan waters for more than 20 years and the first ever ultra deep wells in East Africa. Woodside has given the project a less than one-in-ten chance of success but given that the project involves some US$100million to US$120 million of drilling costs it seems likely the company actually harbours higher hopes than this.


For Global shareholders, the project offers near term exposure to the drillbit rather than sure-fire production and this is what, for the moment, Global is all about. KBC Peel Hunt has predicted some speculative buying ahead of the wells being sunk.

[JAMSTEC Press Release]
October 10, 2006
The Deep-sea Drilling Vessel Chikyu Test Drilling off the Shimokita Peninsula -Partly Damaged on BOP Hydraulic Connectors-
-------------------------------------------------------------------
As the emergency response to the rapidly developed low-pressure, around 6pm on Oct.7th (Sat.), the Deep-sea Drilling Vessel Chikyu of Japan Agency for Marine-Earth Science and Technology (JAMSTEC; Yasuhiro Kato, President) had disconnected Riser Pipe from Blow-Out Preventer (BOP) urgently at the test drilling area off the Shimokita Peninsula (100 kilo meters north east off Hachinohe City), and had been standing by near the site with Riser Pipe remain connecting. After the weather recovered, partly damages on the BOP Hydraulic Connectors were found during the inspection. The damages seemed to be caused by severe welters in the storm. Currently, we are carefully evaluating the damaged condition and are studying further schedule for test drilling.


http://www.jamstec.go.jp/jamstec-e/PR/0610/1010/index.html

Don't know if you kept up, but this escapade was a shakedown.

Don't look too promising at the moment!

Bad weather damage.

Those darn welters.............!

Pomboo spudded

Place your bets...........

Just in case anyone missed the news.........

Global Petroleum Ltd
25 January 2007


25 January 2007
KENYA

Further to Woodside's release of 23 January 2007 regarding the results of the
Pomboo well in Kenya, Global advises that the L7 Joint Venture has decided not
to drill Sockwe South No. 1 in this drilling campaign.

There are numerous prospects and leads in our Kenya Licences L5 and L7. Pomboo
has established the presence of reservoirs and seals although the well lacked
oil and gas shows. It is important that the decision on the next phase of
exploration be determined after a comprehensive technical assessment of the
relevance and implications of the new information obtained from Pomboo. This
work is expected to occur over the next three to six months.

Accordingly, Woodside as operator of the L5 and L7 Joint Venture will discuss
options with the Kenya Government with a view to agreeing the appropriate way
forward for the JV and Government.

The L5 and L7 Joint Venture comprises:

Woodside Energy (Kenya) Pty Ltd 30% (and operator);
Dana Petroleum (E&P) Ltd 30% *
Repsol Exploration S.A. 20% *
Global Petroleum 20%

The costs associated with Globals 20% in L5 and L7 are carried for all
activities through the drilling of the first well in each of these areas.

For further information, refer to Globals website:
www.globalpetroleum.com.au

I think this means GBP are now in deep poo.

If they have decided not to drill Sockwe, then there is nothing left for Kenya. The huge costs involved in acquiring the drill ship, getting it there and drilling the Pomboo duster are enormous.

What has GBP left? 14% of FOGL and a Malteaser.

Big Al, BTW the drillship appears to have performed as it should have done, so thanks for your much earlier informed post.

Hi Seawall.

I thought GBP had loads of potential, but now am very glad I dumped it at around 29p to go shopping for something else.

Hope you haven't done too badly on this.

No I'm fine.

It was amongst my recent clear out of long shot stocks

Thanks for asking.

Good thing too - the words "shirt" and "lose" spring to mind . . .

Global Petroleum Ltd
24 July 2007



FALKLAND OIL & GAS LIMITED ANNOUNCEMENT

Global Petroleum Limited advised that Falkland Oil & Gas Limited ('FOGL') has
released an announcement in relation to a possible farm in to certain assets.
The full announcement appears hereunder.

Global Petroleum holds a 14% interest in FOGL.

Mark Savage
Chairman

Telephone: +1505 344 2822
Fax: +1505 344 2922
Email:
marksavage@comcast.net


23 July 2007

Falkland Oil & Gas Limited
(the 'Company' or 'FOGL')

Falkland Oil & Gas Limited (the 'Company' or 'FOGL') notes the price movement in
the Company's share price and confirms that it is in advanced discussions which
may or may not lead to a major resources company farming in to certain of its
assets.

Any such transaction, if agreed between the two parties, would be subject, inter
alia, to the approval of the Falkland Islands Government.

A further announcement will be made in due course.

Enquiries:

About time this one had a bit of luck, may it go upwards in peace.

Certainly going upwards with the FOGL rumours. Nice end to the month !

Maybe get two bites of the cherry here...
(SHARECAST) - Australia-based AIM-listed oil explorer Globl Petroleum said the third well at its 15% owned Leighton project in Texas has begun to flow oil and gas.

The Tyler Ranch #2 well flowed oil and gas at the gross rate of 366 barrels of oil equivalent per day (boepd) from the Olmos reservoir.

The flow rate is in line with Peeler #1 and Tyler #1, the first two wells drilled on the Leighton onshore project located on the Gulf Coast of Texas.

The combined output rate of the three wells in production is a gross 600 boepd, of which Globals share is 67.5 boepd.

The Tyler Ranch #2 well has been hooked up to oil tanks and a gas sales pipeline so Global will start to receive revenue from the wells output.

Texan Petroleum, the majority owner of the prospect, said that drilling continues on Tyler Ranch #3, the fourth Leighton production well.

The drill has bored down to a depth of 4,189 feet (1,277 metres) and is expected to hit the targeted Olmos oil and gas reservoir in six to eight days.