Global Petroleum : Interim Financial Report – Half-year ended 31 December 2020

26 March 2021

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 2020

Global Petroleum Limited (AIM: GBP) announces its financial results for the six months ended 31 December 2020.

Operational

• • One year extension of licence PEL0094 sub-period until September 2021 agreed with Namibian Ministry of Mines and Energy, with an amended work commitment for the sub-period - now completed

• • Work commitments also completed for last phase of PEL0029, which expired in December 2020, no further extensions being allowed

• • Updated best estimate of Prospective Resources on PEL0094 announced in January 2021 showing threefold increase to 2,284 million barrels of oil net to Global

• • Farm-out process for PEL0094 commenced in Q1 2021 and currently ongoing

Finances

• • Successful equity raise of £1.4 million completed in September 2020, to fund ongoing exploration work on the Company's Namibian licences

• • Cash balance at period end US$1,247,787 (30 June 2020: US$932,818)

• • In order to preserve cash, further G&A reduction from April 2021 including a second 25 per cent cut of UK Directors' salary/fees, with other savings to be implemented

• • Loss after tax US$3,044,332 (2019: loss US$748,541) after impairment write off following expiry of PEL0029 amounting to US$2,409,656 (2019: Nil).

Strategy and Outlook

The Company's strategy remains to seek a farm-in partner for PEL0094. In parallel with the farm-out process, given the Company's reducing cash resources and the continued delays regarding its Italian licence applications, the Board has also decided to explore all strategic alternatives, in order to maximize shareholder value.

Copies of the full Half-year Financial Report are also available from the Company's website:www.globalpetroleum.com.au

For further information please contact:

Global Petroleum Limited	[phone]
Peter Hill, Managing Director & CEO Andrew Draffin, Company Secretary
Panmure Gordon (UK) Limited (Nominated Adviser & Sole Broker)	[phone]
Corporate Finance: Nicholas Harland / Ailsa MacMaster Corporate Broking: Hugh Rich
Tavistock (Financial PR & IR) Simon Hudson / Nick Elwes	[phone]

GLOBAL PETROLEUM LIMITED LETTER TO SHAREHOLDERS

Dear Shareholders,

We are pleased to present to you the Global's Interim Financial Report for the six months ended 31 December 2020.

During and following the reporting period, the Company has been focused on completing the work programmes for its two Namibian licences - PEL0029 and PEL0094. As a result of the further technical work carried out, an updated estimate of Prospective Resources was generated for PEL0094, and announced in January 2021.

The updated Prospective Resources (best estimate) net to Global on an unrisked basis - for the Company's main prospects Marula and Welwitschia Deep along with a number of new leads - totals 2,284 million barrels of oil. This represented a threefold increase compared with the previous estimate, and confirmed the Company's view that the acreage is highly prospective.

In July 2020 agreement was reached with the Ministry of Mines and Energy for the extension of the PEL0094 licence sub-period, from September 2020 until September 2021, with a modified work programme commitment.

In December 2020 PEL0029 expired under its terms, further extensions not being permitted under Namibian petroleum exploration law.

Having announced the updated Prospective Resources estimate, Global then commenced a farm-out process which is currently underway in respect of PEL0094. Securing a new partner would facilitate entry into the next sub-period of the licence, which carries a commitment to shoot a new 3D seismic survey on Block 2011A.

In Italy the Company notes the ongoing delays relating to its four licence applications offshore in the Adriatic Sea, caused by various appeals, one of which is now due to be considered by the European Court later in 2021. In addition, the moratorium on hydrocarbon exploration activities, including permit applications, has been extended again - until August 2021.

Corporate

During the reporting period Global strengthened its finances to provide funding for its ongoing work commitments on its Namibian licences. In September 2020 the Company successfully raised £1.4 million in aggregate before costs via a Placing of 177,000,000 Ordinary Shares at a price of 0.75 pence per share, along with a Subscription by certain Directors for a further 9,666,667 Ordinary Shares. As a further component of the Placing and Subscription, 186,666,667 Warrants were issued at an exercise price of 1.5 pence per share with a duration of 2 years (one Warrant for every new Ordinary Share). In the event the Warrants are exercised in full, associated proceeds will be £2.8 million, with the result that the Company will have raised gross proceeds of £4.2 million at a weighted average price of 1.125 pence per share.

In July 2020, Global completed its previously announced de-listing from the Australian Securities Exchange (ASX), resulting in the quotation of the Company's Ordinary Shares solely on the Alternative Investment Market (AIM) in London.

The Company remains committed to reducing its cost base further, in order to conserve cash resources. Following the announcement in April 2020 of cuts to G&A costs, including a 25% reduction in UK Directors' salaries/fees effective from that month, the Board has agreed upon a further reduction in UK Directors' salaries/fees by the same amount, effective 1 April 2021, along with other savings to be implemented in due course.

Board

It was with great regret we announced in February 2021 the passing of Peter Blakey, major shareholder and Non-executive Director of the Company. Peter contributed significantly to Global in his time as a Director over many years, and the Board would like to acknowledge its gratitude for this.

Financial

The Group recorded a loss after tax of US$3,055,295 for the half year (2019: loss US$748,541). This includes an impairment charge of US$2,409,656 million relating to PEL0029 which expired in December 2020. Cash balances at 31 December 2020 were US$1,247,787 (30 June 2020: US$932,818), the increase reflecting in particular the equity issue completed in the reporting period. The Group has no debt except that relating to suppliers, which are settled on normal commercial terms.

Strategy and Outlook

The Company's strategy remains to seek a farm-in partner for PEL0094. In parallel with the farm-out process, given the Company's reducing cash resources and the continued delays regarding its Italian licence applications, the Board has also decided to explore all strategic alternatives, in order to maximize shareholder value.

John van der Welle Chairman

Peter Hill

Chief Executive Officer

1.

OPERATING AND FINANCIAL REVIEW

Namibian Project

Up until the latter part of the reporting period the Namibian Project consisted of an operated 85 per cent participating interest in Petroleum Exploration Licence ("PEL") Number 0029 covering Blocks 1910B and 2010A, and an operated 78 per cent participating interest in PEL0094 (acquired in 2018) which covers Block 2011A (see Figure 1). PEL0029 expired on 3 December 2020.

In July 2020 the Company announced updated estimates of Prospective Resources for PEL0094 after interpretation of the 3D seismic data survey recently licensed from the Namibian State Oil Company, NAMCOR. A total of 881 million barrels of unrisked gross Prospective Resources (Best Estimate) was estimated in PEL0094 in two prospects, Marula and Welwitschia Deep, of which 687 million barrels are net to Global. The interpretation of the 3D seismic data led to increased confidence in the two prospects. The Marula prospect is a distal pinchout of Cretaceous sandstones onto the Welwitschia high. Global's interpretation of the 3D seismic data revealed a significant amplitude anomaly whose down-dip edge conforms with structure, which resulted in the geological chance of success of Marula being increased from 8 per cent to 18 per cent. The Welwitschia Deep prospect was also confirmed by interpretation of the 3D seismic data and the Albian carbonate reservoir had Best Estimate unrisked gross Prospective Resources of 671 million barrels of oil (523 million barrels net to Global). The agreement with NAMCOR in March 2020 to licence the existing 3D seismic data on Block 2011A in return for extra equity in the licence also helped conserve the Company's cash resources.

In July 2020, the Company also announced that the Ministry of Mines and Energy in Namibia (the "Ministry") had agreed to extend the PEL0094 licence sub-period from September 2020 to September 2021 and to modify the work commitments. The four-year Initial Exploration Period had been split into two sub-periods of two years each, with the first sub-period ending in September 2020. The amendment agreed by the Ministry gave Global a further year to fulfill a modified work commitment. The modified work programme agreed with the Ministry concentrates on the licensing of existing seismic data and the carrying out of studies specifically designed to focus on the exciting Marula and Welwitschia Deep prospects. Should the Company elect to enter the next licence sub-period in September 2021, the commitment is to shoot a new 2,000 square kilometre 3D seismic data survey.

In November 2020 the Company purchased historic 2D seismic data in order to map the source rock from the Wingat-1 and Murombe-1 wells in the south of the Walvis Basin into Global's acreage to the north. The Company also commissioned studies to examine the amplitude with offset ("AVO") response of the source rock in the wells. The Company's interpretation of this data, together with the commissioned studies, enabled the source rock to be mapped with even further confidence into Global's acreage.

In December 2020 the Company purchased further historic 2D seismic data in order to improve interpretation of both its Marula prospect and also the relatively under-explored eastern part of the block.

Consequently post the reporting period, in January 2021 the Company announced an updated estimate of Prospective Resources for PEL0094. The additional Prospective Resources in the east of PEL0094 consist of 7 new leads with a total unrisked gross Prospective Resources (Best Estimate) of 2,048 million barrels of oil ("barrels"). As previously reported in July 2020, the pre-existing prospects - Marula and Welwitschia Deep - contain a total of 881 million barrels, making a new total on the licence of 2,929 million barrels unrisked gross Prospective Resources (Best Estimate). Regarding the Prospective Resources attributable to Global, the total unrisked net Prospective Resources (Best Estimate) now total 2,284 million barrels compared with the previous number of 687 million barrels net to Global - which related to Marula and Welwitschia Deep alone. This means that the total unrisked net Prospective Resources (Best Estimate) - both gross and net - are over three times as large, due to the new leads identified. When adjusted for exploration risk, Prospective Resources have approximately doubled.

The technical work undertaken in late 2020 has more than fulfilled the firm work commitments on PEL0094. As well as identification of the significant new leads in the eastern part of PEL0094, the geological chance of success of Marula was increased from 18 per cent to 22 per cent and the further work has significantly reinforced the Company's confidence that the source rock is present and generating oil in PEL0094.The Company believes that the latest work has vindicated the Company's view that the acreage is highly prospective. The updated Prospective Resources estimates were also timely as the Company commenced the farm-out process for PEL0094.

With respect to the Company's other Namibian licence, PEL0029 (Blocks 1910B and 2010A), the licence was issued on 3 December 2010 and expired under its terms on 3 December 2020, further extensions not being permitted under Namibian petroleum exploration law. The Company completed its outstanding licence work programme commitments for PEL0029 under budget in the latter part of 2020.