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.