REG - Global Petroleum Ltd - Half-year Report
28/03/2024 07:00
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RNS Number : 6074I Global Petroleum Ltd 28 March 2024
28 March 2024
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.
Global Petroleum Limited
("Global" or "the Company")
Interim Financial Report - Half Year Ended 31 December 2023
Global (AIM: GBP) announces its financial results for the half year ended 31
December 2023.
Highlights
Operational
· The focus during the reporting period, and subsequently, has been the
Company's farm-out process and entering the next exploration period in respect
of its Namibian licence PEL0094 ("Licence");
· On 14 August 2023 the Company announced that the Namibian authorities
had given approval for the Company and its partners to proceed to the First
Renewal Period of the Licence, with a duration of two years from September
2023 to September 2025. Importantly, the usual requirement at the end of the
Initial Exploration Period to relinquish 50 per cent of the Licence area was
waived;
· Global has continued its efforts to farm-out an interest in the
Licence. Further announcements will be made as and when appropriate;
· On 15 September 2023, the Company announced that it had been informed
that appeals against the environmental decrees granted in its favour for
Licence Applications D 80 F.R- GP, D 81 F.R-GP, D 82 F.R-GP and D 83 F.R-GP
("the Applications") by the Italian authorities had been dismissed. The
Company submitted additional documentation in connection with the Applications
to the Italian Ministry of Ecological Transition and has been awaiting a
response from the Ministry regarding the process going forward. Further
announcements will be made as and when appropriate.
Corporate
· A number of changes to the Board of the Company occurred in late
November 2023. Mr Daniel Page and Ms Cecilia Yu were appointed Executive
Directors of the Company and Mr Azib Khan was appointed a Non-Executive
Director of the Company. Mr John Van der Welle, Mr Peter Hill and Mr Garrick
Higgins all resigned from Board.
· Post the period end Mr Daniel Page resigned on 11 March 2024
Financial
· Loss after tax US$3,164 (2022: loss US$695,619) reflecting ongoing
exploration expenditure in Namibia;
· Cash balance at year end US$ 597,365 (31 December 2022: US$ 356,389);
· Costs and overheads minimised during the period;
· Equity raise of £250,000 gross proceeds in August 2023, following
confirmation of entering the First Renewal Period by the Namibian authorities,
with a further fundraise of £253,000 in November 2023.
Strategy and Outlook
The primary aim of the Board remains to find suitable opportunities in the
sector, using the team's extensive network. The Company has continued to make
good progress in identifying potential opportunities with a view to
diversifying the business away from being dependent on a single asset.
For further information, please visit www.globalpetroleum.com.au
(http://www.globalpetroleum.com.au) or contact:
Global Petroleum Limited +61 3 8611 5333
Andrew Draffin, Company Secretary and Non-Executive Director
Panmure Gordon (UK) Limited (Nominated Adviser & Joint Broker) +44 (0) 20 7886 2500
James Sinclair-Ford / Freddie Twist
Hugh Rich
CMC Markets (Joint Broker) +44 (0) 20 7170 8200
Tom Curran / Thomas Smith
SI Capital Limited +44 (0) 148 341 3500
Nick Emerson / Nick Briers
Tavistock (Financial PR & IR) +44 (0) 20 7920 3150
Simon Hudson / Nick Elwes
OPERATING AND FINANCIAL REVIEW
Review of Operations
The focus of Global Petroleum Limited ("Global" or the "Company") during the
reporting period, and subsequently, has been its farm-out process and entering
the next exploration period in respect of its Namibian licence PEL0094
("Licence"), and the continued strengthening of its finances in order to
maintain its options for the Licence and/or the possible pursuit of other
strategic investments. It has also continued to engage with the Italian
authorities regarding the Company's exploration permit applications.
In August 2023, the Company announced that the Namibian authorities had given
approval to proceed to the first renewal exploration Period, from September
2023 to September 2025 .This came with a commitment to acquire, process and
interpret 2,000 kms of 3D seismic data (a commitment carried over from the
Initial Exploration Period) and to drill a well contingent upon the results of
interpretation of the 3D.
The Ministry waived the usual requirement to relinquish 50% of the licence
area at the end of the Initial Exploration Period, which meant that Global and
its partners retained all of the prospectivity of the licence.
At the beginning of each licence period, the Company and its partners are
obliged to issue a guarantee, which is linked to the specified minimum
exploration expenditure of the firm work commitment. The precise quantum is
currently being negotiated between Global and the Ministry with the matter
expected to be resolved in April 2024.
Since the award the Company has licensed both the existing 3D and 2D seismic
data within PEL0094 and further 2D seismic data outside of PEL0094 to allow
the technical story to be understood and described, in order to attract a
partner to join Global in the licence.
Estimates of Prospective Resources for PEL0094 were announced in July 2020 and
in January 2021. In the east of PEL0094 there are 7 leads with a total
unrisked gross Prospective Resources (Best Estimate) of 2,048 million barrels
of oil. In the centre of PEL0094 are the prospects Marula and Welwitschia
Deep, which contain a total of 881 million barrels of oil. This gives a total
on the licence of 2,929 million barrels unrisked gross Prospective Resources
(Best Estimate).
As previously reported, the Company's work has established that in all the
modelled cases the source rock is mature in the northern Walvis Basin and that
sufficient volumes of hydrocarbons have migrated into the prospects previously
identified. Oil seeps have also been located - via a satellite radar study -
within the boundaries of the Licence, thus further supporting the Company's
interpretation of a working petroleum system in the area.
In Italy, following the 'Plan for Sustainable Energy Transition of Appropriate
Areas' ("Plan") which came into effect in February 2022, the Company provided
the Italian authorities technical evidence of the gas prospectivity in
relation to the Company's four licence applications in the Adriatic Sea.
A key structural component of the Plan is the provision that in future only
exploration for gas (as opposed to oil) will be permitted in Italy, both
onshore and offshore. As reported previously, the relevant authority, the
Italian Ministry of Ecological Transition, informed Global that the Company's
exploration objectives in the amended Applications are in compliance with the
provisions of the Plan.
In September 2023, the Company made several announcements regarding Italy that
it had been informed that appeals against the environmental decrees granted in
its favour by the Italian authorities had recently been dismissed by the
Council of State (having previously been dismissed by the tribunal in Rome).
The actions were brought by the Municipality of Margherita di Savoia in Puglia
against the relevant Italian Ministries and entities - with Global joined as
an "interested party" - and related to the Company's applications known as d
80 F.R GP, d 81 F.R GP d 82 F.R-GP and d 83 F.R-GP. The judgements in Global's
favour follow the victories in all of the cases brought against the Company by
various entities in Puglia, culminating in the judgement of the European Court
in January 2022.
Earlier in the year, the Company had submitted further documentation in
connection with the Applications to the Italian Ministry of Ecological
Transition and has been awaiting further dialogue with the Ministry regarding
the process going forward.
Once this process is complete, the Company will assess its options in relation
to the Applications and make an announcement accordingly. If the Company
decides to accept the award of exploration permits, it will seek a partner at
the appropriate time.
As previously announced, there were a number of changes to the Board of the
Company in late November 2023. Mr Daniel Page and Ms Cecilia Yu were appointed
Executive Directors of the Company and Mr Azib Khan was appointed a
Non-Executive Director of the Company. Mr John Van der Welle, Mr Peter Hill
and Mr Garrick Higgins all resigned from Board with Mr Daniel Page resigning
on 11 March 2024.
Subsequent to these changes to the Board, the Company has been pursuing new
opportunities with the aim to generate shareholder value, diversify the
Company's portfolio of assets and deliver a pathway to profitability. Further
updates on these endeavors will be provided in due course if appropriate.
DIRECTORS' REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
1. DIRECTORS
The Directors of the Company at any time during or since the half-year are:
Non-Executive
Mr Andrew
Draffin
Non-Executive Director
Mr Azib Khan (appointed 27 November
2023) Non-Executive Director Mr John van
der Welle (resigned 27 November 2023) Non-Executive
Director Mr Garrick Higgins (resigned 27 November
2023) Non-Executive Director
Executive
Ms Cecila Yu (appointed 27 November
2023) Executive Director Mr Daniel Page
(appointed 27 November 2023, resigned 11 Executive Chairman March 2024)
Mr Peter Hill (resigned 27 November
2023) Executive Director
2. SUBSEQUENT EVENTS
On 2 February 2023 Mr Daniel Page and Ms Cecilia Yu were issued with
100,000,000 fully paid ordinary shares in the Company at an issue price equal
to the last placing price of 0.06 pence for a total consideration of £60,000
each. The Shares are voluntarily escrowed for 90 days. The share issue will
preserve the cash position of the Company and is in recognition of the below
market rate remuneration for the Executive Directors.
Mr Andrew Draffin was also be issued with 33,333,333 Shares in the Company at
an issue price equal to the last placing price of 0.06 pence, for a total
consideration of £20,000 with an escrow period of 90 days. The Shares were
issued as full and final settlement of unpaid compensation relating to
services provided to the Company outside his role of Non-Executive Director to
31 December 2023.
The Board also resolved to issue options to both the Executive and
Non-Executive Directors as outlined below.
The issued options have the following performance and time-based vesting
conditions proportional to the number of options issued to each Director as
outlined below.
1. 20% of options issued vest if the market capitalisation of the
Company grows by 50% within 1 year from date of issue;
2. 20% of options issued vest if the market capitalisation of the
Company grows by 100% within 1 year from date of issue;
3. 20% of options issued vest if the market capitalisation of the
Company grows by 150% within 1 year from date of issue;
4. 20% of options issued vest if the market capitalisation of the
Company grows by 200% within 1 year from date of issue; and
5. Remaining 20% of options issued vest in equal instalments over 5
years from date of issue.
All options have an expiry of 10 years from date of issue with an exercise
price of equal to a 50% premium to the 7-day VWAP to 31 December 2023 being
0.0645 pence. No options have met their vesting conditions at the date of this
report.
Mr Daniel Page resigned from his position as Executive Director and Chairman
of the Company on 11 March 2024.
The Company announced a partnership agreement with Cynergy East Med LLC on 26
January 2024 which was subsequently mutually terminated on 12 March 2024
following the resignation of Mr Daniel Page.
The Company is also in open negotiations with a number of counter parties
around the potential acquisition of complementary and in some cases
diversified assets and continues to seek a partner for it Namibian licence.
All discussions are preliminary and non-binding at the date of this report.
3. AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
The lead auditor's independence declaration is set out on page 4 and forms
part of the Directors' Report for the 6-month period ended 31 December 2023.
Signed in accordance with a resolution of the Directors
Andrew Draffin
Director and Company Secretary
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
These consolidated financial statements and notes represent those of Global
Petroleum Limited and Controlled Entities (the "Group").
Group
For the six months ended 31
December
2023 2022
Note US$ US$
Other income 4 305,799 -
Employee benefits expense (16,401) (186,188)
Administrative expense (200,966) (376,821)
Other expenses (77,146) (61,097)
Share based payments - (47,027)
Depreciation and amortisation expense (9,718) (1,720)
Exploration and business development expenses 6 (10,248) (16,566)
Foreign exchange gain (loss) 2,007 (9,022)
Results from operation activities (6,673) (698,441)
Finance income 3,509 2,822
Net finance income (3,164) (695,619)
Loss before income tax (3,164) (695,619)
Tax benefit (expense) - -
Loss for the period (3,164) (695,619)
Earnings per share
From continuing and discontinued operations
Basic earnings per share (cents) (0.0002) (0.0700)
Diluted earnings per share (cents) (0.0002) (0.0700)
The accompanying notes form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023
Group
31 December 30 June 2023
2023
Note US$ US$
Assets
Current assets
Cash and cash equivalents 597,365 356,389
Trade and other receivables 28,810 35,301
Total current assets 626,175 391,690
Non-current assets
Property, plant and equipment - 9,719
Other assets 130,050 190,083
Exploration and evaluation assets 6 1,790,138 1,724,039
Total non-current assets 1,920,188 1,923,841
Total assets 2,546,363 2,315,531
Liabilities
Current liabilities
Trade and other payables 23,326 89,894
Provisions - 259,751
Total current liabilities 23,326 349,645
Total liabilities 23,326 349,645
Net assets 2,523,037 1,965,886
Equity
Issued capital 7 44,903,846 44,343,531
Reserves 854,227 854,227
Accumulated losses (43,235,036) (43,231,872)
Total equity 2,523,037 1,965,886
The accompanying notes form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
31 DECEMBER 2023
Issued Share Capital Option Reserve Foreign Currency Translation Accumulated Losses Total
Reserve
US$ US$ US$ US$ US$
Consolidated Group
Six months ended 31 December 2022 -
Balance at 1 July 2022 43,474,971 678,632 570,410 (42,390,080) 2,333,933
Comprehensive income
Loss for the period - - - (695,619) (695,619)
Total comprehensive income/(loss) for the period - - - (695,619) (695,619)
Transactions with owners, in their capacity as owners, and other
transfers
Issue of shares 924,000 - - - 924,000
Transaction costs (55,440) - - - (55,440)
Issue of options - 47,027 - - 47,027
Expiry of options - (441,842) - 441,842 -
Total transactions with owners and other transfers 868,560 (394,815) - 441,842 915,587
Balance at 31 December 2022 44,343,531 283,817 570,410 (42,643,857) 2,553,901
Six months ended 31 December 2023 -
Balance at 1 July 2023 44,343,531 283,817 570,410 (43,231,872) 1,965,886
Comprehensive income
Loss for the period - - - (3,164) (3,164)
Total comprehensive income/(loss) for the period - - - (3,164) (3,164)
Transactions with owners, in their capacity as owners, and other
transactions
Issue of shares 629,952 629,952
Transaction costs (69,637) (69,637)
Total transactions with owners and other transactions 560,315 - - - 560,315
Balance at 31 December 2023 44,903,846 283,817 570,410 (43,235,036) 2,523,037
The accompanying notes form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31
DECEMBER 2023
Group
For the six months ended 31 December
2023 2022
US$ US$
Cash flows from operating activities
Interest received 3,509 2,822
Payments to suppliers and employees (296,320) (699,883)
GST/VAT refunds received 3,771 3,110
Net cash (used in) operating activities (289,040) (693,951)
Cash flows from investing activities
Payments for exploration and business development expenditure (30,299) (285,377)
Net cash (used in) investing activities (30,299) (285,377)
Cash flows from financing activities
Proceeds from issue of shares 629,952 924,000
Payments for capital raising costs (69,637) (55,440)
Net cash provided by financing activities 560,315 868,560
Net increase in cash held 240,976 (110,768)
Cash and cash equivalents at beginning of financial year 356,389 1,139,775
Cash and cash equivalents at end of financial year 597,365 1,029,007
The accompanying notes form part of these financial statements.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIALS & STATEMENTS FOR
THE SIX MONTHS ENDED 31 DECEMBER 2023
Note 1 Reporting Entity
Global Petroleum Limited ("Global" or the "Company") is a company domiciled
and incorporated in Australia. It is a company limited by shares and whose
shares are publicly traded on the London Stock Exchange (AIM). The condensed
consolidated interim financial statements of the Company as at and for the six
months ended 31 December 2023 are comprised of the Company and its controlled
entities (together referred to as the "Group"). The Group is a for-profit
entity and is primarily involved in oil and gas exploration and development.
The consolidated annual financial statements of the Group as at and for the
year ended 30 June 2023 are available upon request from the Company's
registered office at Level 4 91 William Street, Melbourne, VIC 3000, Australia
or at www.globalpetroleum.com.au. (http://www.globalpetroleum.com.au/)
Note 2 Basis of Preparation
Statement of compliance
These interim financial statements have been prepared in accordance with AASB
134 Interim Financial Reporting, the Corporations Act 2001 and IAS 34 Interim
Financial Reporting. They should be read in conjunction with the Group's last
annual consolidated financial statements as at and for the year ended 30 June
2023 ('last annual financial statements'). They do not include all of the
information required for a complete set of annual financial statements.
However, selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the changes in the
Group's financial position and performance since the last annual financial
statements.
These interim financial statements were authorised for issue by the Company's
Board of Directors on 28 March 2024. The financial information in this
half-year report is presented in United States dollars ("US$").
Use of judgement and estimates
In preparing these interim financial statements, management has made
adjustments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expenses. Actual results may differ from these estimates.
Any significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those applied to the consolidated financial statements as at and for
the year ended 30 June 2023.
Note 3 Summary of Significant Accounting Policies
The accounting policies applied in these financial statements are the same as
those applied to the Group's consolidated financial statements as at and for
the year ended 30 June 2023.
Going Concern Note
The financial statements have been prepared on the going concern basis of
accounting, which contemplates the continuity of normal business activity and
the realisation of assets and the settlement of liabilities in the ordinary
course of business.
The Group has no source of operating revenue and settles its expenditure
obligations from existing cash resources. It generated a loss of US$3,164 (31
December 2022: loss of US$695,619) and had net cash outflows from the
operating activities of US$289,040 (31 December 2022: net cash outflows of
US$693,951) for the half-year ended 31 December 2023. As of that date, the
Group had net assets of US$2,523,037 (30 June 2023: US$1,965,886) and cash
assets of US$597,365 (30 June 2023: US$356,389). The Group has no debt.
The Directors have prepared a cash flow forecast for the next 12 months based
on best estimates of future inflows and outflows of cash, to support the
Group's ability to continue as a going concern. The ability of the Company to
continue as a going concern is principally dependent upon a combination of one
or more of the following factors - management of existing funds; securing
further funds via raising capital from equity markets; concluding a farm-out
arrangement whereby a farm-in party would assume the costs of meeting certain
future exploration and other commitments on the Company's Namibian licence;
and the deferral of licence commitments.
The raising of additional equity capital is subject to market conditions and
investor demand; securing a farm-out requires agreement with a suitable third
party which the Group has not achieved to date; and any deferral of licence
commitments would require the consent of the Namibian Ministry of Mines and
Energy. As each of these are not within the Company's control, these
conditions constitute a material uncertainty that may cast significant doubt
on the use of the going concern basis of accounting. However, the Director
have a reasonable expectation that one or more of these actions will be
achieved and note a successful equity placing in the reporting period which
raised gross proceeds of approximately $0.630 million (half-year ended 31
December 2022: GBP0.924 million).
The Company is also pursuing other commercial opportunities with an intention
to build a diversified portfolio of assets. Discussions with counter parties
are ongoing with a number of potential counterparties at the date of this
report.
Accordingly, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future, and therefore the Directors continue to adopt the going concern basis
of accounting in preparing the financial statements. The financial statements
do not include any adjustments relating to the classification of assets
including Exploration and Evaluation assets, or the recoverability of asset
carrying values, or to the amount and classification of liabilities, which
might result should the Group be unable to continue as a going concern.
Application of New and Revised Accounting Standards
The Group has adopted all of the new, revised or amending Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board
("AASB") that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are
not yet mandatory have not been early adopted.
Note 4 Other Income
31 December 2023 31 December 2022
US$ US$
Write off of provision for annual leave 259,751 -
Refund from Italy in relation to its applications 46,048 -
305,799 -
Note 5 Interests in Subsidiaries
(a) Information about Principal Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary
shares or ordinary units which are held directly by the Group. The proportion
of ownership interests held equals the voting rights held by the Group.
Name of subsidiary Principal place of business Ownership interest held by the
31 December 2023 30 June 2023
(%) (%)
Global Petroleum Exploration Limited United Kingdom 100 100
Global Petroleum Namibia Limited British Virgin Islands 100 100
Note 6 Exploration and evaluation assets
6 months to 31 December 2023 12 months to 30
June 2023
US$ US$
Balance at beginning of period 1,724,039 1,291,599
Expenditure capitalised during the period 66,099 432,440
Expenditure written off during the period - -
Balance at end of period 1,790,138 1,724,039
The Group's Exploration and Evaluation Assets at the end of the reporting
period relates solely to its Namibian licence PEL0094.
During the reporting period, the Group did not expense any other exploration
and evaluation costs in the statement of profit and loss. (31 December 2022:
nil).
An amount of US$10,248 (31 December 2022: US$16,566) was expensed on business
development, which relates to the Group's activities in assessing other
opportunities in the oil and gas sector.
Namibia
In September 2018, Global Petroleum Namibia was awarded licence PEL0094, and a
Petroleum Agreement was signed on 11 September 2018. The Initial Exploration
Period ran for four years and is divided into two sub periods of two years
each: IEP1, and IEP2. IEP1 runs from September 2018 to September 2020. During
IEP1, Global has undertaken to purchase and reprocess the existing available
3D seismic data and other 2D data, as well as some additional G & G
studies. In July 2020, agreement was reached with the Ministry of Mines and
Energy ("MME") for the extension of the sub-period ending in September 2020
for one year to September 2021, with a modified work commitment. The Company
met all IEP1 commitments at the date of this report. In August 2021, the
Company announced that the Namibian authorities had acknowledged the exercise
by the Company of its option to enter into the next sub- period of PEL0094
from September 2021 to September 2022. In April 2022 the Company announced
that the Namibian authorities had granted a one year extension to the Initial
Exploration Period ("IEP"), from September 2022 to September 2023.
In August 2023 the MME gave approval for the Company and its partners to
proceed to the First Renewal Period ("FRP") of Walvis Basin licence PEL0094,
with a duration of two years from September 2023 to September 2025. The work
commitment for the FRP is to acquire, process and interpret 2,000 kms of 3D
seismic data (the "3D Seismic") - carried over from the IEP and to drill a
well contingent upon the results of interpretation of the 3D Seismic. The
original well commitment for the FRP - as specified in the Petroleum Agreement
for PEL0094 - was firm, rather than contingent.
At the beginning of each licence period, the Company and its partners are
obliged to issue a guarantee, which is linked to the specified minimum
exploration expenditure of the firm work commitment. The precise quantum is
currently being negotiated between Global and the Ministry with the matter
expected to be resolved in April 2024.
No adjustments relating to the classification of the Exploration and
Evaluation Assets, or the recoverability carrying value has been made that
might result should the Group be unable to continue as a going concern. Refer
Note 3 - Going Concern for further details around going concern.
Exploration commitments on the Company's exploration tenements are detailed
above and in Note 11.
Note 7 Issued Capital
31 December 2023 30 June 2023
US$ US$
1,711,779,910 fully paid ordinary shares (30 June 2023: 1,040,113,244) fully 44,903,846 44,343,531
paid ordinary shares
44,903,846 44,343,531
The Group has authorised share capital amounting to 1,711,779,910 ordinary
shares.
(a) Ordinary Shares 6 months to 31 December 2023 12 months to 30 June 2023
No. US$ No. US$
Balance at beginning of period 1,040,113,244 44,343,531 811,541,816 43,474,971
Shares issued during the period 671,666,666 629,952 228,571,428 924,000
Less: Transaction costs - (69,637) - (55,440)
Balance at end of period 1,711,779,910 44,903,846 1,040,113,244 44,343,531
(b) Options 6 months to 31 December 2023 12 months to 30 June 2023
Number of options Weight average exercise price Number of options Weighted average exercise price
US$ US$
Balance at beginning of period 29,000,000 0.0111 27,100,000 0.0214
Options issued during the period 10,000,000 0.0050
Options expired during the period (8,100,000) 0.0380
Balance at end of period 29,000,000 0.0111 29,000,000 0.0111
(c) Warrants 6 months to 31 December 2023 12 months to 30 June 2023
Number of warrants Weight average exercise price Number of warrants Weighted average exercise price
US$ US$
Balance at beginning of period 512,063,492 0.0104 397,777,778 0.0110
Warrants issued during the period 250,000,000 0.0013 114,285,714 0.0084
Warrants expired during the period (397,777,778) - - -
Balance at end of period 364,285,714 0.0058 512,063,492 0.0104
Note 8 Operating Segments
Africa - the Group currently holds prospective oil and gas exploration
interests offshore Namibia.
(a)Segment information
(i)Segment performance
Africa Consolidated
2023 2022 2023 2022
US$ US$ US$ US$
For the six months ended 31 December
Segment revenue
External revenue - - - -
Total revenue - - - -
Segment result
Segment Result - - - -
- - - -
Interest income - - 3,509 2,822
Net foreign exchange gain (loss) - - 2,007 (9,022)
Other income - - 305,798 -
Corporate and administration costs - - (314,478) (689,419)
Loss for the period before tax - - (3,164) (695,619)
Income tax benefit (expense) - - - -
Loss for the 6 months period - - (3,164) (695,619)
(ii)Segment assets and liabilities
Africa Consolidated
31 December 2023 30 June 2023 31 December 2023 30 June 2023
US$ US$ US$ US$
Assets
Segment assets 1,790,138 1,724,039 1,790,138 1,724,039
Unallocated assets - - 756,225 591,492
Consolidated assets 1,790,138 1,724,039 2,546,363 2,315,531
Liabilities
Segment liabilities 3,500 7,000 23,326 7,000
Unallocated liabilities - - - 342,645
Consolidated liabilities 3,500 7,000 23,326 349,645
Acquisition of non-current assets, including capitalised - 432,440 - 432,440
Note 9 Share based payments
The aggregate share-based payments for the six months ended 31 December 2023
are set out below:
Six months ended 31 December 2023 Six months ended 31 December 2022
Number Weighted average exercise price Number Weighted average exercise price
US$ US$
Options outstanding as at 1 July 29,000,000 0.0111 27,100,000 0.0000
Options issued during the period - - 10,000,000 0.0050
Options expired during the period - - (8,100,000) 0.0380
Options outstanding as at 31 December 29,000,000 0.0111 29,000,000 0.0111
The following share-based payment arrangements were in existence during the
current reporting period:
Number Grant Date Expiry Date Exercise Price Fair value at grant price Vesting Period
(i) Options Granted 19,000,000 7 January 2021 21 January 2026 US$0.0143 441,842 N/A
(ii) Options Granted 10,000,000 6 December 2022 6 December 2027 US0.005 47,027 N/A
Options were valued using the Black-Scholes model. Where relevant, the
expected life used in the model has been adjusted based on management's best
estimate of the effects of non-transferability of exercise restrictions.
Expected volatility is based on the historical share price volatility of the
Company's ordinary shares over the reporting period.
Number Share price at grant date Expiry Price Expected volatility Option life Risk-free interest rate
US$ US$
Options Granted 19,000,000 0.013 0.014 160% 5 years 1.49%
Options Granted 10,000,000 0.439 - 133% 5 years 1.49%
Note 10 Financial Instruments
The financial assets and liabilities consist of trade and other receivables
and trade and other payables. The financial assets and liabilities are carried
at amortised cost, the carrying value is assumed to approximate their fair
value.
Note 11 Capital and Joint Venture Commitments
(a) Exploration expenditure commitments
Exploration expenditure commitments in order to maintain current rights of
tenure to exploration tenements, the Group is required to perform minimum
exploration work to meet the minimum expenditure requirements specified by
various foreign governments where exploration tenements are held.
These obligations are subject to renegotiation when application for a tenement
is made and at other times. These obligations are not provided for in the
financial statements. Financial commitments for subsequent periods can only be
determined at future dates, as the success or otherwise of exploration
programmes determines courses of action allowed under options available in
tenements. The Group's only exploration expenditure commitments relate to its
interest in joint ventures.
(b) Namibia Licence PEL0094
In August 2023, the MME gave approval for the Company and its partners to
proceed to the First Renewal Period ("FRP") of Walvis Basin licence PEL0094,
with a duration of two years from September 2023 to September 2025. The work
commitment for the FRP is to acquire, process and interpret 2,000 kms of 3D
seismic data (the "3D Seismic") - carried over from the current Initial
Exploration Period and to drill a well contingent upon the results of
interpretation of the 3D Seismic. The original well commitment for the FRP -
as specified in the Petroleum Agreement for PEL0094 - was firm, rather than
contingent.
Global Petroleum Namibia Limited has a 78 per cent interest in the PEL0094,
however it is responsible for 100 per cent of the expenditure requirements
with its joint venture partners holding a total of 22 per cent free carried
interest.
Note 12 Subsequent Events
On 2 February 2023 Mr Daniel Page and Ms Cecilia Yu were issued with
100,000,000 fully paid ordinary shares in the Company at an issue price equal
to the last placing price of 0.06 pence for a total consideration of £60,000
each. The Shares are voluntarily escrowed for 90 days. The share issue will
preserve the cash position of the Company and is in recognition of the below
market rate remuneration for the Executive Directors.
Mr Andrew Draffin was also be issued with 33,333,333 Shares in the Company at
an issue price equal to the last placing price of 0.06 pence, for a total
consideration of £20,000 with an escrow period of 90 days. The Shares were
issued as full and final settlement of unpaid compensation relating to
services provided to the Company outside his role of Non-Executive Director to
31 December 2023.
The Board also resolved to issue options to both the Executive and
Non-Executive Directors as outlined below.
The issued options have the following performance and time-based vesting
conditions proportional to the number of options issued to each Director as
outlined below.
6. 20% of options issued vest if the market capitalisation of the
Company grows by 50% within 1 year from date of issue;
7. 20% of options issued vest if the market capitalisation of the
Company grows by 100% within 1 year from date of issue;
8. 20% of options issued vest if the market capitalisation of the
Company grows by 150% within 1 year from date of issue;
9. 20% of options issued vest if the market capitalisation of the
Company grows by 200% within 1 year from date of issue; and
10. Remaining 20% of options issued vest in equal instalments over 5
years from date of issue.
All options have an expiry of 10 years from date of issue with an exercise
price of equal to a 50% premium to the 7-day VWAP to 31 December 2023 being
0.0645 pence. No options have met their vesting conditions at the date of this
report.
Mr Daniel Page resigned from his position as Executive Director and Chairman
of the Company on 11 March 2024.
The Company announced a partnership agreement with Cynergy East Med LLC on 26
January 2024 which was subsequently mutually terminated on 12 March 2024
following the resignation of Mr Daniel Page.
The Company is also in open negotiations with a number of counter parties
around the potential acquisition of complementary and in some cases
diversified assets and continues to seek a partner for it Namibian licence.
All discussions are preliminary and non-binding at the date of this report.
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Global Petroleum Limited,
the Directors of the Company declare that:
1. the financial statements and notes, as set out on pages 5 to 12,
are in accordance with the Corporations Act 2001 and:
(a) comply with Australian Accounting Standards applicable to the
entity, which, as stated in accounting policy Note 1 to the financial
statements, constitutes compliance with AASB 134: Interim Financial Reporting;
and
(b) give a true and fair view of the financial position as at 31
December 2023 and of the performance for the year ended on that date of the
consolidated group;
2. in the directors' opinion there are reasonable grounds to believe
that the company will be able to pay its debts as and when they become due and
payable; and
3. the directors have been given the declarations required by
section 295A of the Corporations Act 2001from the Chief Executive Officer and
Chief Financial Officer.
Director
Mr Andrew Draffin
-ends-
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