Below a copy and paste from a UK investor forum.Author: DAVER383...

Below a copy and paste from a UK investor forum.

Author: DAVER383 Number: of 125710
Subject: 2010 Share Comp Entry - GBP (Global Petroleum) Date: 7/1/10 15:35
Recommendations: 15

Global Petroleum is an Australian based O & G company listed on ASX. It is also listed on AIM and therefore; ISA able.

Its website (which is wholly inadequate and provides little if any assistance) is here; http://www.globalpetroleum.com.au/ .

I should inform you that I bought in to Global early last year at around 5p. I watched with bated breath as it rose to 14p and got greedy. Go on my son, git that oil!

...the well turned out to be a duster and I had so many ruddy shares I couldnt dump them until it got back down to around 5p. Gutted...and that was with an investment of less than 10 grand!! (Now I have had a taste of just one of the problems of what it must be like to invest miwwions my son, ...when you are in the leagues of the pauly pilots and djps etc around here... ? Cant wait until I have to make my first RNS to say why I am buying the company etc...anyway back to the real world. Just take fair warning this is not a recommendation to buy. I currently do not own shares in the GBP, although I intend to be (re-)investing shortly. DYOR and feel free to (constructively) criticise mine.

GBPs share price is currently around 11.25 bid with 174,444,787 shares in issue giving a market capitalisation of approximately 19.62m; The interim accounts show they made 2.45m of earnings after tax to 30/06/09 and I am led to believe they have 27.09m cash in the bank at present. (So no immediate threat to cash flows (going bust)).

Two of the directors of the company, Mark Savage Chairman; and Peter Blakey are I believe founders of the company now known as (a pub favourite) Dana, although I understand they no longer have an interest in Dana. They do have an interest in Tower Resources (TRP) and have a farm in agreement with Neptune Petroleum (Uganda) Ltd, a wholly owned subsidiary of TRP in

Operations (taken directly from the Annual Report)

Leighton Project
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 earned a 15% Working Interest (WI) in the first well by funding
30% of the cost of drilling the well in addition to reimbursing 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 opted to participate in the drilling of a second well under the same terms to earn a 15% WI in the Leighton leases. All subsequent wells drilled on Leighton are at each companys earned working interest.
Global has now commenced receiving revenue from the production of both Peeler #1 and Tyler Ranch #1.

Uganda
During the year, Global announced that it has reached agreement (Farm In Agreement) with Neptune Petroleum
(Uganda) Limited (Neptune), a wholly-owned subsidiary of Tower Resources plc (Tower), an AIM listed oil and gas exploration company, to farm in to an interest in Neptunes Uganda acreage. Global has the right to earn a 50% interest in Exploration Area 5 (EA5), north western Uganda by meeting the cost of two exploration commitment wells.
EA5 is a 6,040 sq km licence area situated at the northern end of the Albertine Graben in northern Uganda. A
regional aeromagnetic survey has identified that EA5 contains one of five identified sedimentary depocentres (or basins), called the Rhino Camp Basin, within the Albertine Graben and a programme of seismic interpretation and geochemical sampling has been completed.
It was agreed that Globals funding of Iti-1 was capped at US$6.5 million in the event that drill stem testing was not justified and US$7.5 million in the event that the presence of hydrocarbons supports the need for a drill stem test programme, after which Global would fund 25% of continuing well costs. In May 2009, Neptune drilled Iti-1 and advised that the well, which was drilled to a total depth of 592 meters, did not encounter any producible reservoir sands at the Iti-1 location. Minor hydrocarbon shows were monitored during drilling but evidence of limited quantities of oil in the lowermost target horizon remained ambiguous in the subsequent down-hole well logs and pressure test data. The apparent lack of reservoir at this location did not justify further testing or the immediate move to drill a second well. The Consolidated Entity realised a write down in exploration expenditure of A$9,397,989 during the financial year in relation to the EA5 Project.
There are no expenditure cap levels for the drilling of the second well. Notwithstanding the above, Global may opt not to fund the second well in which case Global may, at its sole discretion, continue with a 25% interest or withdraw from EA5 altogether.
A re-evaluation of the well data, combined with all other available technical data, has now been completed.
Global is reviewing the results of this work before electing to participate in a second well.

Kenya
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 Woodsides 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 the Company considers to be a repudiation and breach of the FIA.
The Company and joint venture partner Dana Petroleum (E&P) Limited are continuing legal proceedings to
recover losses suffered as a result. The proceedings have progressed to the pre-trial disclosure stage. The
Company anticipates a hearing in the English High Court of Justice in 2010.



If the Uganda well comes in (due in the first Qtr of this year), it is conceivable GBP could be a real contender to win the Nicky Fraser Cup.

Say; (back of a fag packet calculation of); 100mn bopd divided by 174 mn shares = 57.5p + 11.25 current = potential 68.75p.

See also:

thegreatgeraldos post here; http://boards.fool.co.uk/Message.asp?mid=11790589&sort=postdate