GLOBAL: PETROLEUM LIMITED

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2008

Review of Operations AND ACTIVITIES

Kenya 

The L5 and L7 Joint Venture comprises:

Woodside Energy (Kenya) Pty Ltd     30% (and operator)

Dana Petroleum (E&P) Ltd                30%

Repsol Exploracion S.A.                   20%

Global Petroleum                              20%

PSC L5 expired on 11 July 2008 and PSC L7 on 8 June 2008. None of the joint venture parties have given notice that they wish to renew the PSC's.

Notice has been given to Woodside Energy (Kenya) Pty Limited ("Woodside") terminating the Farm-In Agreement ("FIA"). The termination notice has been given based on Woodside's refusal to drill a second exploratory well in the project area in accordance with the FIA and its failure to take any steps to remedy this refusal, which Global considers to be a repudiation and breach of the FIA.

Global and joint venture partner Dana Petroleum (E&P) Ltd have commenced legal proceedings in the English High Court of Justice to recover losses suffered as a result. 

The carrying value of the Consolidated Entity's Kenya exploration expenditure has been written-down to nil during the financial year.

Falkland Oil and Gas Limited ("FOGL") 

During the year FOGL announced it had entered into a farm-out agreement with a subsidiary of BHP Billiton over FOGL's 2002 and 2004 licences to the South and East of the Falkland Islands. Under the agreement, BHP Billiton will acquire a 51% interest, and will take over the operatorship of the licences. A minimum of two exploration wells will be drilled in the next 3 years and BHP Billiton pays FOGL US$12.75 million in reimbursement of certain historical costs.

Global sold a significant parcel of its FOGL shares during the year, realising a gain before tax of approximately $27.1 million. As at 30 June 2008, Global held approximately 1.85% of the issued shares of FOGL, valued at approximately $4.6 million. 

Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 

RWE Dea AG ("RWE"), which has farmed into Global's interest in the Exploration Study Agreement covering Blocks 4 & 5, has the right to earn up to a total 70% interest if the parties enter into a PSC with the Malta Government and RWE commits to the drilling of a well. The Maltese Government have not granted an extension to the Exploration Agreement that expired on 30 June 2008 however RWE are continuing talks with a potential farminee. 

Should a well be drilled, Global's 30% share (including 3% on behalf of a UK marketing agency that assisted Global in the farm-in process) of the costs of such a well would be fully carried by RWE.

The carrying value of the Consolidated Entity's Malta exploration expenditure has been written-down to nil during the financial year.

Significant Changes in the State of Affairs

Other than as outlined in the Review of Operations and Activities above, the following significant changes in the state of affairs of the Consolidated Entity occurred during the year:

• Mr Peter Dighton resigned from the Board on 31 January 2008 and Mr Shane Cranswick was appointed a Non-Executive Director of the Company on 6 June 2008. 

Significant Post Balance Date EvenTS

On 15 August 2008, the Company announced it was farming in to the Leighton oil prospect owned by Texon Petroleum Limited (ASX: TXN). The Company will earn a 15% Working Interest ("WI") in the first well by funding 30% of the cost of drilling the well, which is forecast to be approximately US$300,000.

In addition, Global reimbursed Texon US$180,000 in respect of prospect generation and lease costs for the well.

When the first well on Leighton has been drilled, Global will have the option to participate in the drilling of a second well on the Leighton prospect under the same terms to earn a WI in the Leighton leases. Global only earns a 15% WI in Leighton when this second well has been drilled. All subsequent wells drilled on Leighton will be at each company's earned working interest. 

Other than as outlined above, as at the date of this report there are no matters or circumstances, which have arisen since 30 June 2008 that have significantly affected or may significantly affect:

• the operations, in financial years subsequent to 30 June 2008 of the Consolidated Entity;

• the results of those operations, in financials years subsequent to 30 June 2008 of the Consolidated Entity; or

• the state of affairs, in financial years subsequent to 30 June 2008 of the Consolidated Entity.

Environmental Regulation and Performance

The Consolidated Entity's operations are subject to various environmental laws and regulations under the relevant government's legislation. Full compliance with these laws and regulations is regarded as a minimum standard for all operations to achieve.

Instances of environmental non-compliance by an operation are identified either by external compliance audits or inspections by relevant government authorities. 

There have been no significant known breaches by the Consolidated Entity during the financial year. 

Likely Developments and Expected Results 

It is the Board's current intention that the Consolidated Entity will focus on maximising the value of its oil and gas exploration assets in Kenya and Malta and continue to examine new opportunities in mineral exploration, particularly in the oil and gas sector.  

All of these activities are inherently risky and the Board is unable to provide certainty that any or all of these activities will be able to be achieved. In the opinion of the Directors, any further disclosure of information regarding likely developments in the operations of the Consolidated Entity and the expected results of these operations in subsequent financial years may prejudice the interests of the Company and accordingly, has not been disclosed.

INCOME STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

The accompanying notes form part of the Income Statements.

BALANCE SHEETS

AS AT 30 JUNE 2008

The accompanying notes form part of the Balance Sheets. 

CASH FLOW STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

The accompanying notes form part of the Cash Flow Statements.

STATEMENTS OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008