Final Results

Global Petroleum Ltd
30 September 2005



              Preliminary Results for the year ended 30 June 2005



Principal activities

The principal activities of the Company during the course of the financial year
were:

* A continuing 20% interest in four production sharing contracts related to
  blocks L-5, L-7, L-10 and L-11 in offshore Kenya.

* An investment of 14% held in Falkland Oil and Gas Limited which holds a 77.5%
interest in seven offshore petroleum licences covering approximately 29,000 km2
and 100% interest in a further seven licences covering approximately 50,000 km2
in offshore Falkland Islands.

* An investment of 10% held in Falkland Gold and Minerals Limited which holds an
exclusive minerals licence, onshore Falkland Islands.

* Ireland Licence Option held 100% to carry out a work program in an area which
comprises part of four blocks in the North Celtic Sea Basin to decide whether to
relinquish the option or apply for an exclusive exploration licence.

* Malta Exploration Study Agreement held 100% to decide whether to enter into a
production sharing contract with the Government of Malta over two blocks in the
southern end of the Ragusa Trough, offshore Malta.


Review and results of operations

Consolidated operating loss after tax attributable to the members of the Company
for the year ended 30 June 2005 was $1,772,832 (2004: $3,054,408).

Kenya (Global Petroleum 20%)

The Company has 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 Petroleum (20%) - the terms of an extension of the Licence
including the work programme are subject to discussion with the Kenya
Government.

In L-5 and L-7 Global Petroleum is in a Joint Venture with Woodside (50% and
operator) and Dana Petroleum (E&P) Limited (30%). The costs associated with
Global Petroleum's 20% equity are carried for all activities including the
drilling and testing of two wells.

Woodside withdrew from L-11 in September 2005 and Global Petroleum and Dana
Petroleum (E&P) Limited are negotiating terms for the operation of this block.

In August 2004, the Company announced Woodside's intention to continue in Blocks
L-5 and L-7 at which time Woodside committed to the drilling of the first of the
two wells through which Global Petroleum's costs are carried. In May 2005,
Woodside indicated that it was actively seeking a drilling rig for Kenya and has
indicated the second or third quarters of calendar year 2006 as a likely time of
drilling of the first well which is targeted to be in Block L-5.

Mapping of the 2003 5,500 km2 2D seismic survey revealed several leads in Blocks
L-5 and L-7 in water depths of 1,650 - 2,800 metres with the leads (potential
targets for drilling) ranging in size from 10 km2 (2,500 acres) to 60 km2
(15,000 acres).

Preliminary interpreted results of the 3,600 km 2D seismic survey which was
carried out between November 2004 and January 2005 now indicate the presence of
over 30 leads with sizes ranging from 20 to 100 km2. A lead of 50 km2 would be
capable of holding 350 million barrels of recoverable oil on the basis of
reasonable reservoir assumptions.

Relinquishments have been made during the year from blocks L-5, L-7 and L-10.

Falkland Oil and Gas Limited - FOGL (Global Petroleum 14.0%)

FOGL issued a public offering prospectus on 30 September 2004 and was admitted
to the UK AIM board on 14 October 2004 with a capital raising of £12 million
(A$30 million). Global Petroleum held 12.85 million shares or 16.1% in the new
listed company. The capital was raised to fund seismic surveys over the licence
areas of 33,700 km2 in offshore Falkland Islands held 77.5% by FOGL and 22.5% by
Hardman Resources. In December 2004 FOGL was awarded a further 50,000 km2 in its
own right which is north of the FOGL/Hardman area.

In late December 2004 the seismic survey of 9,450 kms 2D commenced and
preliminary results were announced in May 2005. Over 130 leads were identified
compared with the initial eight leads stated in the AIM prospectus in September
2004.

Encouraged by the results of the first round of seismic, FOGL decided to conduct
a second round of seismic and in June 2005 the GSI vessel 'Admiral' commenced
8,000 kms of 2D seismic which is expected to be completed in October 2005. This
survey has since been extended to 15,000 kms. The company's aim is to identify
20 drillable prospects with drilling possibly beginning in 2007.

In June 2005 directors of FOGL placed an additional 11.765 million shares at 85p
to raise further funds of £10 million (A$25 million) for the new seismic surveys
to investigate leads identified through the interpretation of the seismic to
date. Global Petroleum did not take up any shares in the placement preferring
instead to conserve its cash. As a result the Company's holding in FOGL was
diluted down to 14.0%.

In June 2005 FOGL was granted a two year extension to Phase one of its initial
licence area of approximately 33,700 km2 (which was reduced by relinquishment in
June 2005 to approximately 29,000 km2). Phase one now expires in July 2007.
Phase two of the initial licence area with a commitment to drill two wells now
expires in July 2010.

Falkland Gold and Minerals Limited - FGML (Global Petroleum 10.1%)

In November 2004 the company's name was changed from Falkland Minerals Limited
to Falkland Gold and Minerals Limited (FGML) to better reflect its objectives.
The company holds an exclusive onshore minerals licence over the entire land
area of the Falkland Islands.

In order to fund onshore drilling, assays and analysis of the results, FGML
sought and was admitted to the UK AIM board on 9 December 2004 with a capital
raising of some £9 million after costs (A$22.5 million). Global Petroleum holds
7.91 million shares or 10.1% in the new listed company.

Drilling commenced in March 2005 on targets developed from its 2004 aeromagnetic
survey and at June 2005 three holes had been drilled from an initial target of
nine. In June 2005 the first assays were reported as being sub-economic.

Astral assets

At the AGM held on 25 November 2004 shareholders approved the acquisition of
100% of the issued shares of Astral Petroleum Limited (Astral) and the payment
to one of the vendors, TM Services Ltd, of £195,000 (A$504,322) plus the issue
of one million fully paid ordinary Global Petroleum shares to the vendors. The
vendors of Astral included Mr P Blakey and Mr P Taylor who are directors and
substantial shareholders of Global Petroleum; a company associated with both of
them and a company associated with the spouse of Mr M Savage, a director of
Global Petroleum. Mr Savage no longer has any association with the vendors of
Astral.

The two assets acquired were the Ireland Licensing Option and the Malta
Exploration Study Agreement (details of which are listed below). Shareholders
also approved the issue to the vendors of an additional four million fully paid
ordinary Global Petroleum shares (each for Tranches 2 and 3) in respect of each
asset provided the Company entered into conditional farmouts for each asset by
25 November 2005 (ie eight million shares in total if both assets are
farmed-out).

The Company has undertaken remapping and studies combined with some reprocessing
to improve the quality of the seismic lines in the deeper sections to provide
information which will be attractive to potential farminees for both of the
Ireland and Malta interests.

However, the Company was delayed in its endeavours to achieve farmouts due in
large part to the serious illness of its London based consultant. As the due
date for both farmouts is now unlikely to be achieved, the Company will seek an
extension of time from shareholders until 30 June 2006 at the forthcoming AGM to
be held on 24 November 2005. Details will be available in the Explanatory
Memorandum in the AGM Notice of Meeting.

Irish Licensing Option

100% interest in parts of blocks 57/3, 57/4, 57/8 and 57/9 in the North Celtic
Sea Basin.

The Irish Minister for Communications, Marine and Natural Resources granted the
Irish Licensing Option to Astral (Ireland) on 5 September 2003.

Under the Irish Licensing Option, Global Petroleum applied for an exclusive
licence and an extension was granted on a conditional basis until 31 December
2005 provided that Company undertake additional work as agreed by the Minister
and the Company. The Company has applied for a 12 month extension to the License
Option until 31 December 2006.

Since the grant of the Option, Global Petroleum has been working closely with
the Irish Government on the existing work program and has initiated a marketing
program to bring new parties into the Option.

The purpose of the extension is to allow the optionholder (Global Petroleum) to
carry out further work, seek potential farminees through the marketing program
and following completion of both programs decide then what is the best course
for the Company to follow.

Maltese Exploration Study Agreement

Under the Maltese Exploration Study Agreement, TM Services (Malta) Ltd and
Astral Petroleum (Malta) Limited are permitted to study data owned by the
Government and all other data in relation to the area the subject of the
agreement. The parties may elect to enter into a production sharing contract
with the Government of Malta within a certain period of time.

Since the grant of the Exploration Study Agreement, Global Petroleum has been
working on the existing work program which includes seismic reprocessing trials
and has initiated a marketing program to bring new parties into the Exploration
Study Agreement.

The Maltese Exploration Study Agreement was to expire on 26 June 2005. The
Maltese Government extended it by 6 months until 26 December 2005 on generally
the same terms. The Company has applied for a 12 month extension to the
Exploration Study Agreement until 26 December 2006.

The purpose of the extension is to allow Global Petroleum to carry out further
work, seek potential farminees through the marketing program and following
completion of both programs decide then what is the best course for the Company
to follow.

Global Petroleum may give notice that it wishes to enter into a Production
Sharing Contract over the area at any time up to expiry of the Maltese
Exploration Study Agreement.

Surat Basin, Queensland (Global Petroleum 100%)

In July 2004 the Company surrendered two permits ATPs 729P and 731P back to the
Queensland Government. During the March 2005 quarter the Company applied to
surrender the remaining permit ATP 728P.

Iraq

A joint venture was established in the previous financial year between the
Company and local interests in Iraq to procure a production sharing contract
(PSC) in northern Iraq. The application to the Kurdistan Regional Government
sought the right to rehabilitate the Chamchamal gas and condensate field. As
reported last year the application was unsuccessful and the joint venture has
lapsed.

In June 2005 the Company formed a joint venture alliance with TM Services
Limited for the purpose of pursuing upstream petroleum interests in Iraq except
in certain areas in northern Iraq known as Chamchamal and Taq Taq.

Significant changes in the state of affairs

The consolidated entity's ordinary share capital increased by $5,897,478 to
$34,436,135 (2004: $28,538,657), principally as a result of the one-for-three
non-renounceable rights issue in September 2004.

The consolidated entity's total assets increased by $3,440,349 to $27,259,208
(2004: $23,818,859), principally as a result of higher cash holdings of
$2,870,407 following the rights issue in September 2004.
Dividends

No dividends have been declared, provided for or paid in respect of the
financial year ended 30 June 2005.

Events subsequent to reporting date

Since 30 June 2005:

* The Company has proposed to amend the Astral Petroleum Limited acquisition
agreement which was approved at the November 2004 AGM. The amendment is in
respect of the Tranche 2 and Tranche 3 shares, being an extension of time for
the issue from 25 November 2005 to 30 June 2006, and is subject to shareholder
approval at the November 2005 AGM.

* 500,000 options were exercised in September 2005 at an exercise price of $0.25
(there were no amounts unpaid on the shares issued).

* Woodside withdrew from L-11 in offshore Kenya in September 2005.

For reporting periods beginning on or after 1 July 2005, the consolidated entity
must comply with Australian equivalents to International Financial Reporting
Standards (AIFRS) as issued by the Australian Accounting Standards Board. The
implementation plan and potential impact of adopting AIFRS are detailed in Note
35 to the financial statements.

Other than the matters discussed above there has not arisen in the interval
between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of
the directors of the Company to affect significantly the operations of the
consolidated entity, the results of those operations or the state of affairs of
the consolidated entity in future financial years

Likely developments

At the date of this report the Company is awaiting the result of Woodside's
endeavours in securing a deepwater drilling rig to drill the first well in L-5
in offshore Kenya. The Company will announce when a rig has been secured by
Woodside.

The consolidated entity will continue to investigate opportunities to add
projects to its portfolio which fit its strategy.





                      STATEMENTS OF FINANCIAL PERFORMANCE
                        FOR THE YEAR ENDED 30 JUNE 2005


                                   Consolidated            Global Petroleum
                        Note     2005         2004         2005         2004
                                   $            $            $            $

Revenue from
ordinary activities      3    1,624,106    1,588,064    1,006,413      140,522

Depreciation
expense                  4      (58,251)     (34,800)     (13,940)     (16,231)
Salaries and
employee benefits
expense                        (444,000)    (189,035)    (265,848)     (82,320)
Consulting fees                (862,751)    (241,575)    (742,816)    (159,965)
Shareholder costs              (172,011)     (96,683)    (126,429)     (88,244)
Occupancy costs                 (46,283)     (25,843)     (12,124)     (12,291)
Carrying amount of
non-current assets
disposed                        (14,728)      (2,357)        (405)      (2,357)
Exploration and
evaluation expenditure 
written off:
Relating to
exploration assets
disposed                 4     (887,532)    (996,757)    (166,585)           -
Other                    4     (593,502)  (2,875,580)    (593,502)    (470,970)
Write-down of
investment in
controlled entity        4            -            -     (613,234)  (1,776,605)
Net other expenses
from ordinary
activities                     (235,409)    (168,377)    (148,713)     (90,434)
Net foreign
exchange loss            4            -       (4,570)        (986)           -
                                 --------     --------     --------     --------
Share of net losses
of associates
accounted for           
using the equity
method                  27      (82,471)      (6,895)           -            -
                                 --------     --------     --------     --------
Loss from ordinary
activities before
related income tax
expense/benefit               (1,772,832)  (3,054,408)  (1,678,169)  (2,558,895)

Income tax
(expense)/benefit        6            -            -            -            -
                                 --------     --------     --------     --------

Net loss                20    (1,772,832)  (3,054,408)  (1,678,169)  (2,558,895)
                                 --------     --------     --------     --------

Non-owner transaction                
changes in equity                     -            -            -            -
                                 --------     --------     --------     --------

Total changes in
equity from non-owner
transactions attributable
to the members of the 
parent entity                 (1,772,832)  (3,054,408)  (1,678,169)  (2,558,895)
                                 ========     ========     ========     ========

                                  Cents        Cents
Basic earnings per
share                    7        (1.08)       (2.51)
Diluted earnings
per share                7        (1.08)       (2.51)





                        STATEMENTS OF FINANCIAL POSITION
                               AS AT 30 JUNE 2005


                                     Consolidated             Global Petroleum
                        Note       2005         2004         2005         2004
                                     $            $            $            $
Current assets
Cash assets              8    6,159,540    3,289,133    6,135,310    3,279,991
Receivables              9      213,340      119,222       77,700       56,082
Other financial
assets                  10          600       61,480          600          600
Other assets            11       72,710       13,929       19,837       13,929
                                  -------     --------     --------     --------
Total current
assets                        6,446,190    3,483,764    6,233,447    3,350,602
                                  -------     --------     --------     --------

Non-current assets
Other financial
assets                  12    2,495,798            -   18,625,854   18,147,910
Investments
accounted for
using the equity
method                  27            -    2,112,981            -            -
Receivables             13            -            -    2,769,662    1,256,924
Property, plant
and equipment           14       73,897      114,318       69,594       96,599
Exploration and
evaluation
expenditure             15   18,243,323   18,107,796      113,687      742,931
                                  -------     --------     --------     --------
Total non-current
assets                       20,813,018   20,335,095   21,578,797   20,244,364
                                  -------     --------     --------     --------

TOTAL ASSETS                 27,259,208   23,818,859   27,812,244   23,594,966
                                  -------     --------     --------     --------

Current liabilities
Payables                16      303,247      945,838      206,510      166,835
Provisions              17        7,095       48,801        7,095       48,801
                                  -------     --------     --------     --------
Total current
liabilities                     310,342      994,639      213,605      215,636
                                  -------     --------     --------     --------

Non-current liabilities
Payables                18            -            -       61,260       61,260
                                  -------     --------     --------     --------
Total non-current
liabilities                           -            -       61,260       61,260
                                  -------     --------     --------     --------

TOTAL LIABILITIES               310,342      994,639      274,865      276,896
                                  -------     --------     --------     --------

NET ASSETS                   26,948,866   22,824,220   27,537,379   23,318,070
                                  =======     ========     ========     ========

Equity
Contributed
equity                  19   34,436,135   28,538,657   34,436,135   28,538,657
Accumulated
losses                  20   (7,487,269)  (5,714,437)  (6,898,756)  (5,220,587)
                                  -------     --------     --------     --------

TOTAL EQUITY            22   26,948,866   22,824,220   27,537,379   23,318,070
                                  =======     ========     ========     ========





                            STATEMENTS OF CASH FLOWS
                        FOR THE YEAR ENDED 30 JUNE 2005


                                       Consolidated           Global Petroleum
                        Note         2005        2004         2005        2004
                                       $           $           $            $
Cash flows from
operating activities
Payments to suppliers
and employees                  (1,413,269)   (694,600)    (981,404)   (392,124)
Goods and services tax
refunded                          119,646      53,652      119,646      53,652
Interest received                 330,522     101,056      336,565     109,023
Dividends received
from controlled
entities                                -           -      652,793           -
Management fees
received                          359,165      91,756            -           -
                                   --------    --------     --------    --------
Net cash provided by/
(used in) operating
activities              33(a)    (603,936)   (448,136)     127,600    (229,449)
                                   --------    --------     --------    --------

Cash flows from
investing activities
Payments for property,
plant and equipment               (42,420)     (4,493)     (35,579)     (4,493)
Payments for
exploration expenditure,
Including overheads
capitalised                      (592,201)   (876,373)    (176,715)   (269,775)
Proceeds on disposal
of exploration assets             850,745           -            -           -
Payments for
controlled entities     26(b)    (721,178)          -     (721,178)          -

Payments for
investments                    (1,183,369)    (25,558)           -           -
Proceeds from other
financial assets                   60,886     161,297            -       9,868
Repayments of loans
from controlled
entities                                -           -      599,053           -
Advances to controlled
entities/associated
company                                 -           -   (2,018,616)   (703,200)
                                   --------    --------     --------    --------
Net cash used in
investing activities           (1,627,537)   (745,127)  (2,353,035)   (967,600)
                                   --------    --------     --------    --------

Cash flows from
financing activities
Proceeds from issue of
shares                          5,661,518   2,509,000    5,661,518   2,509,000
Share issue expenses             (134,040)    (73,281)    (134,040)    (73,281)
Costs of admission to
the Alternative Investment
Market of the London
Stock Exchange                   (446,724)          -     (446,724)          -
                                   --------    --------     --------    --------
Net cash provided by
financing activities            5,080,754   2,435,719    5,080,754   2,435,719
                                   --------    --------     --------    --------

Net increase in cash
held                            2,849,281   1,242,456    2,855,319   1,238,670

Cash acquired on
acquisition of
controlled entities     26(b)      21,126           -            -           -

Cash at beginning of
the financial year              3,289,133   2,046,677    3,279,991   2,041,321
                                   --------    --------     --------    --------

Cash at end of the
financial year          33(b)   6,159,540   3,289,133    6,135,310   3,279,991
                                   ========    ========     ========    ========




                         NOTES TO FINANCIAL STATEMENTS

1. REVENUE FROM ORDINARY ACTIVITIES

                                          Consolidated
                                        2005        2004
                                          $           $          $         $
Revenue from operating
activities
Interest received/receivable -
related parties                            -           -       8,795     8,795
Interest received/receivable -
other parties                        347,527     123,909     344,775   123,182
Rendering of services from
operating activities                 424,681      92,094           -         -
Other revenues
Net foreign exchange gain              1,103           -           -     5,715
Proceeds on the disposal of
exploration assets                   850,745   1,366,629           -         -
Proceeds on disposal of
property, plant and equipment             50       2,830          50     2,830
Dividends - related parties -
wholly-owned group                         -           -     652,793         -
Other revenue                              -       2,602           -         -
                                      --------    --------    --------  --------
                                   1,624,106   1,588,064   1,006,413   140,522
                                      ========    ========    ========  ========


2.  EXPENSES AND (GAINS)/LOSSES FROM ORDINARY ACTIVITIES

                                       Consolidated           Global Petroleum
                                     2005         2004       2005         2004
(a) Expenses

Depreciation of plant and
equipment                          68,113       71,974     62,179       69,663
Less: depreciation capitalised
or oncharged to controlled
entities                           (9,862)     (37,174)   (48,239)     (53,432)
                                   --------     --------   --------     --------
                                   58,251       34,800     13,940       16,231
                                   --------     --------   --------     --------

Net expense/(credit) from
movement in:
Provision for employee
entitlements                      (41,706)      30,843    (41,706)      30,843
Exploration and evaluation
expenditure written off:
Relating to exploration
assets disposed                   887,532      996,757    166,585            -
Other                             593,502    2,875,580    593,502      470,970
Write-down of investment in
controlled entity                       -            -    613,234    1,776,605
Operating lease rental
expenses                           11,657       14,102     11,657       14,102

(b) (Gains)/losses

Net losses/(gains) on
disposal of exploration
assets                             36,787     (369,872)   166,585            -
Net losses/(gains) on
disposal of property, plant
and equipment                      14,678         (473)       355         (473)
Net foreign exchange losses             -        4,570        986            -

(c) Significant items included in loss from ordinary
activities (including items in Notes 4(a) and 4(b))
Loss from ordinary activities before income tax expense includes the
following revenues and expenses whose disclosure is relevant in 
explaining the financial performance of the consolidated entity:

Exploration and evaluation
expenditure written off          (593,502)  (2,875,580)  (593,502)    (470,970)
(Losses)/gains on disposal
of exploration assets             (36,787)     369,872   (166,585)           -
Write-down of investment in
controlled entity                       -            -   (613,234)  (1,776,605)
Costs of admission to the
Alternative Investment
Market of the London Stock
Exchange (AIM)                   (446,724)           -   (446,724)           -


3. INCOME TAX

The aggregate amount of income tax attributable to the financial year differs
from the amount calculated on the loss from ordinary activities before tax. The
differences are reconciled as follows:

                                      Consolidated           Global Petroleum
                                   2005         2004         2005         2004
                                     $            $            $            $

Loss from ordinary
activities before tax        (1,772,832)  (3,054,408)  (1,678,169)  (2,558,895)
                                 ========     ========     ========     ========
Income tax calculated
at 30% (2004: 30%)             (531,850)    (916,322)    (503,451)    (767,669)
Tax effect of permanent
differences:
  Exploration and
  evaluation expenditure
  written-off                     178,050      862,674      178,050      141,291
  Write-down of
  investment                            -            -      183,970      532,982
  Net loss/(gain) on
  disposal of
  exploration assets               11,036      (84,467)      49,976            -
  Non-assessable
  dividends                             -            -     (195,838)           -
  Share of associates'
  net losses                       24,741            -            -            -
  Other                           (35,833)         689      (35,833)         689
  Tax losses not brought
  to account                      353,856      137,426      323,126       92,707
                                 --------     --------     --------     --------
Income tax attributable to            -            -            -            -
operating loss                   ========     ========     ========     ========


Future income tax benefits arising from tax losses and timing differences have
not been brought to account at balance date as recovery of tax losses is not
virtually certain and recovery of timing differences is not assured beyond
reasonable doubt:

                                             Consolidated          Global Petroleum
                                           2005        2004        2005        2004
                                            $            $           $           $
Tax losses carried forward            2,087,941   1,674,149   2,066,032   1,630,901
Timing differences                     (359,866)   (631,016)   (359,866)   (647,639)
                                        ---------    --------    --------    --------
                                      1,728,075   1,043,133   1,706,166     983,262
                                        =========    ========    ========    ========

The potential future income tax benefits will only be obtained if:

(i) the relevant company derives future assessable income of a nature and an
amount sufficient to enable the benefit to be realised;

(ii) the relevant company continues to comply with the conditions for
deductibility imposed by the law; and

(iii) no changes in tax legislation adversely affect the relevant company in
realising the benefit.


4. EARNINGS PER SHARE

                                                               Consolidated
                                                            2005          2004
                                                           Cents         Cents

Basic earnings per share                                   (1.08)        (2.51)
Diluted earnings per share is not materially
different from basic earnings per share                    (1.08)        (2.51)

                                                              $             $
Earnings used in the calculation of basic and
diluted earnings per share                            (1,772,832)   (3,054,408)
                                                         =========      ========

Weighted average number of ordinary shares                   No.           No.
outstanding during the year used in the calculation 
of basic and diluted earnings per share               164,045,928   121,787,953
                                                         =========      ========


There has been no conversion to, calls of, or subscriptions for ordinary shares
since the reporting date and before the completion of this financial report.

Options to purchase ordinary shares not exercised at 30 June 2005 have not been
included in the determination of basic earnings per share and diluted earnings
per share as they are not dilutive.


5. DIVIDENDS

No dividends have been declared, provided for or paid in respect of the
financial years ended 30 June 2005 and 2004.


6. STATEMENT OF CASH FLOWS

                                      Consolidated            Global Petroleum
                                   2005         2004         2005         2004
                                    $            $            $            $

(a) Reconciliation of net loss to net cash
provided by/(used in) operating activities

Net loss                     (1,772,832)  (3,054,408)  (1,678,169)  (2,558,895)
Add/(less) items classified
as investing/financing
activities:
(Profit)/loss on
disposal of non-current 
assets                           14,678         (473)         355         (473)
(Profit)/loss on
disposal of exploration 
assets                           36,787     (369,872)     166,585            -
Exploration and
evaluation expenditure
written off                     593,502    2,875,580      593,502      470,970
Costs of admission to the
Alternative Investment
Market of the London
Stock Exchange (AIM)            446,724            -      446,724            -
Add/(less) non-cash items:
Write-down of investment in
controlled entity                     -            -      613,234    1,776,605
Depreciation                     58,251       34,800       13,940       16,231
Net foreign exchange
(gain)/loss                      (1,103)       4,570          986       (5,715)
Provision for employee
entitlements                    (41,706)      30,843      (41,706)      30,843
Share of net losses of
associates                       82,471        6,895            -            -
                                 --------     --------     --------     --------
Net cash provided by/(used
in) operating activities
before change in
assets and liabilities         (583,228)    (472,065)     115,451     (270,434)

Changes in operating assets and
liabilities, net of effects of 
purchase of controlled entities 
during the financial year:
Decrease/(increase) in
receivables                     (94,118)     (41,728)     (21,618)     (29,561)
Decrease/(increase) in
prepayments                      23,262      (12,368)      (5,908)     (12,499)
(Decrease)/increase in
payables                         50,148       78,025       39,675       83,045
                                 --------     --------     --------     --------
Net cash provided
by/(used in) operating
activities                     (603,936)    (448,136)     127,600     (229,449)
                                 ========     ========     ========     ========

(b) Reconciliation of cash

Cash at bank and on hand         203,566       132,922       179,336       123,780
Bank short term deposits       5,955,974     3,156,211     5,955,974     3,156,211
                                --------      --------      --------      --------
                               6,159,540     3,289,133     6,135,310     3,279,991
                                ========      ========      ========      ========


(c) Non-cash investing and financing activities

During the year the Company issued 1 million shares at $0.37 each for the
acquisition of a controlled entity as disclosed in Note 26(b).

During 2004 the consolidated entity disposed of exploration assets for
$1,366,629 in exchange for equity investments in associated entities.

7. EVENTS SUBSEQUENT TO REPORTING DATE

International Financial Reporting Standards

For reporting periods beginning on or after 1 January 2005 the consolidated
entity must comply with Australian equivalents to International Financial
Reporting Standards (AIFRS) as issued by the Australian Accounting Standards
Board. The potential impact of adopting AIFRS is detailed in Note 35.

Other

Since 30 June 2005:

* The Company has proposed to amend the Astral Petroleum Limited acquisition
agreement which was approved at the November 2004 AGM. The amendment is in
respect of the Tranche 2 and Tranche 3 shares, being an extension of time for
the issue from 25 November 2005 to 30 June 2006, and is subject to shareholder
approval at the November 2005 AGM.

* 500,000 options were exercised in September 2005 at an exercise price of $0.25
(there were no amounts unpaid on the shares issued).

* Woodside withdrew from L-11 in offshore Kenya in September 2005.

Other than matters discussed above, there has not arisen since the end of the
financial year any item, transaction or event of a material and unusual nature
likely, in the opinion of the directors of the Company, to affect significantly
the operations of the consolidated entity, the results of those operations, or
the state of affairs of the consolidated entity, in future financial years.




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