Interim Results

Global Petroleum Ltd
10 March 2006


                              Global Petroleum Ltd

                          INTERIM FINANCIAL REPORT FOR

                      THE HALF-YEAR ENDED 31 DECEMBER 2005


DIRECTORS' REPORT

The directors of Global Petroleum Limited present their report on the
consolidated entity consisting of Global Petroleum Limited ('the Company' or
'Global') and the entities it controlled during the half-year ended 31 December
2005 ('consolidated entity' or 'group'), together with the condensed
consolidated financial report for the half-year ended 31 December 2005 and the
review report thereon.


DIRECTORS

The directors of the Company at any time during or since the end of the
half-year are:

Dr John Armstrong (Executive Chairman)     - appointed 31 May 2002
Mr Peter Blakey                            - appointed 4 October 2001
Mr Peter Dighton                           - appointed 23 December 2003
Mr Mark Savage                             - appointed 23 November 1999
Mr Peter Taylor                            - appointed 4 October 2001



REVIEW AND RESULTS OF OPERATIONS

Operating results

During the December 2005 half-year, the group recorded a loss of $338,677 (2004:
$936,577).

Principal activities

The principal activities in regard to the Company's projects were:

(a) Kenya:

    (i)  Over 30 prospects and leads identified in L-5 and L-7;

    (ii) Woodside Energy withdraws from L-11; and


    (iii)Global and Dana Petroleum withdraw from L-10 and L-11.

(b) Falkland Oil and Gas Limited ('FOGL') www.fogl.co.uk

    (i)  Global has a 14.0% shareholding in listed FOGL (12.85 million shares). 
         At 6 March 2006 FOGL shares traded at 158 p/share which values the 
         Company's holding at A$47.9 million or 28 cents per Global ordinary 
         share;

    (ii) FOGL has recorded 11,500 km of second round 15,000 km 2D seismic;

    (iii)FOGL is seeking Farminees to share risk, cost and upside; and

    (iv) New Chairman and CEO appointed.

(c) Falkland Gold and Minerals Limited ('FGML') www.fgml.co.uk

    (i)  The group sold its 10.1% interest in FGML in December 2005 for 10p per 
         share for consideration of A$1.83 million. This resulted in a gain on 
         disposal of $1.09 million.

(d) Astral Petroleum Limited

    (i)  Shareholders approved an extension of time for the issue of fully paid
         Global shares to Astral Petroleum vendors if farmouts from the 
         Company's acreage in Ireland and Malta are achieved;

    (ii) Ireland Option License extended to 31 December 2006; and

    (iii)Malta Blocks extended to 26 June 2006.


Review of operations

(a) Kenya

The Company holds a 20% interest in two blocks (L-5 and L-7) offshore Kenya
together with Woodside Energy (50% and operator) and Dana Petroleum (30%).

From the results of Woodside's mapping of the 2003 5,500 km 2D seismic survey
and the 2004/05 3,600 km 2D seismic survey, it is clear that L-5 and L-7 contain
over 30 prospects and leads, a number of which are each capable of containing
several hundred to a billion barrels of recoverable oil. There are Direct
Hydrocarbon Indicators ('DHI': potential oil and gas indicator) on some of the
leads. In its 2004 Annual Report, Dana noted that the two possible first targets
- Pomboo (L-5) and Sokwe (L-7) - each have the potential to contain over one
billion barrels of oil in place.

More recently in its late 2005 presentation to investors, Woodside noted that
its Kenya holdings contain 'multiple large structural prospects', which it
includes in its group of 'big hit' targets.

The costs associated with the Company's 20% equity in L-5 and / or L-7 are fully
carried for all activities including the drilling and testing of the first two
wells. Woodside will only earn its equity when these two wells are drilled.

Woodside is still to make a firm commitment to a drilling rig in Kenya, although
it continues to investigate rig possibilities. In its half-yearly report to
shareholders dated 15 February 2006 Woodside advised that drilling is planned
'Q3/4 2006' and it is hoped that Woodside will have established a firm position
on a rig to do this in the near future.

The Company withdrew from Blocks L-10 and L-11 in October 2005. Woodside had
previously withdrawn from L-10 in August 2004 and in September 2005 it withdrew
from L-11. In October 2005, both Dana and the Company withdrew from L-10 because
the partners were unable to reach agreement with the Kenyan Government as to the
work programme terms for an extension. The partners then also withdrew from L-11
on the basis of its assessed low oil and gas prospectivity.


(b) Falkland Oil and Gas Limited ('FOGL') (Global shareholding 14%) www.fogl.co
.uk

Global now holds 14% of FOGL which was diluted from 16.1% as a result of the
Company deciding to conserve its cash position and not to participate in a
placement of 11.765 million new shares at 85p per share in May 2005. At 6 March
2006 FOGL shares traded at 158 p/share which values the Company's holding at
A$47.9 million or 28 cents per Global ordinary share.

FOGL holds licenses over 29,000 km2 which is held by FOGL 77.5% and Hardman
Resources 22.5% and licenses over 50,000 km2 which are held by FOGL in its own
right.

The first round of 9,450 km of 2D seismic which commenced in December 2004
identified 130 leads some of which are very large and capable of holding several
billion barrels of oil. Based on these results a second round of 15,000 km 2D
seismic was commenced in June 2005. By mid-February 2006 some 11,500 km of
seismic had been completed. Results of the latest round are expected be
available in the first half of calendar 2006.

In view of the prospectivity of its areas FOGL appointed Stellar Energy Advisors
to introduce potential farminees to offset the costs associated with the next
stage of the project leading up to drilling, possibly in calendar 2007.

In December 2005 Global's Dr John Armstrong stepped down as Executive Chairman
and FOGL appointed a new Chairman and new CEO. Dr Armstrong remains a director
of FOGL.


(c) Falkland Gold and Minerals Limited ('FGML') www.fgml.co.uk

The group sold its 10.1% interest in FGML in December 2005 for 10p per share for
consideration of A$1.83 million. This resulted in a gain on disposal of $1.09
million. The sale will supplement cash resources and be used to fund existing
and potential new projects.


(d) Astral Petroleum Limited

At the Company's AGM on 24 November 2005 shareholders approved a once only
extension of time from 25 November 2005 until 30 June 2006 for the issue to the
vendors of Astral Petroleum Limited an additional four million fully paid
ordinary shares in the Company if the Company achieves a conditional farmout in
each of the Irish and Malta licenses. That is, potentially an additional eight
million shares.

(i) Ireland Licence Option 03/3 (Global 100%)

Global acquired 100% of this Licence Option in December 2004 for a period of 12
months. An extension has been granted by the Irish Government from 31 December
2005 until 31 December 2006. The area comprises part blocks 57/3, 57/4, 57/8 and
57/9 in the North Celtic Sea Basin and is located 30-70 km to the south and
south west of the Seven Heads and Kinsale Head gas fields. The Company continues
to reprocess the seismic data over the main prospect of below the Wealdon Sands
which has Jurassic and Lower Cretaceous targets capable of holding a potential
280 million barrels of oil in place.

(ii) Malta Blocks 4 & 5 (Global 100%)

Global acquired 100% of an Exploration Study Agreement for Blocks 4 and 5 in
December 2004 for a period of 12 months. An extension has been granted from 26
December 2005 until 26 June 2006. These blocks are located at the south end of
the Ragusa Trough which appears to be the source of the oil in fields in the
northern Italian part of the Trough.

Reprocessing of key seismic lines of the 1991 Texaco Survey as required by the
study agreement was conducted during the period. Previous mapping of the Gamma
and Beta prospects suggest that they could be capable of containing 400-900
million barrels of oil respectively.

(iii) In 2005 the Company appointed Envoi Limited, a petroleum industry project
broker based in London, to seek Farminees to join Global in these projects.


(e) New prospects

The Company continues to seek new opportunities in Iraq and other areas.


Lead Auditor's Independence Declaration under Section 307C of the Corporations
Act 2001

The lead auditor's independence declaration is set out on page 8 and forms part
of the directors' report for the half-year ended 31 December 2005.

Signed in accordance with a resolution of directors.


J D Armstrong
Director
Brisbane
9 March 2006


CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2005



                                            Note   31 Dec 2005     31 Dec 2004
                                                             $               $

Revenue - rendering of services                 2       62,111         270,817

Gains on disposal - available-for-sale
investments                                     5    1,093,589               -

Depreciation expense                                   (11,530)        (33,412)
Salaries and employee benefits expense                (229,045)       (219,670)
Consulting and professional fees                      (315,772)       (213,235)
Shareholder costs                                      (60,744)       (163,126)
Occupancy costs                                        (18,673)        (19,868)
Losses on disposal - exploration assets                      -        (114,083)
Exploration and evaluation expenditure
written off                                           (944,482)       (320,228)
Net other expenses                                     (66,357)       (198,140)
                                                       --------        --------
Loss before financing                                 (490,903)     (1,010,945)
                                                       --------        --------

Financial income - interest
received/receivable                                    150,782         149,195
Net foreign exchange gain                                1,444           1,303
                                                       --------        --------
Net financing income                                   152,226         150,498
                                                       --------        --------

Share of losses of associates accounted for
using the equity method                                      -         (76,130)
                                                       --------        --------
Loss before tax                                       (338,677)       (936,577)

Income tax expense                                           -               -
                                                       --------        --------
Loss for the period attributable to equity
holders of the parent                           2     (338,677)       (936,577)
                                                       --------        --------

                                                         Cents           Cents
Basic loss per share                                     (0.20)          (0.59)
Diluted loss per share                                   (0.20)          (0.59)



CONDENSED CONSOLIDATED INTERIM STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE SIX MONTHS ENDED 31 DECEMBER 2005


                                                   Note      31 Dec     31 Dec
                                                               2005       2004
                                                                  $          $

Recognised directly in equity
Fair value reserve
Available-for-sale investments - change in
fair value                                                1,041,766          -
Available-for-sale investments -
transferred to profit/loss on disposal                   (5,352,938)         -
                                                            --------   --------
Net expense recognised directly in equity                (4,311,172)         -
Loss for the period                                        (338,677)  (936,577)
                                                            --------   --------
Total recognised income and expense for the
period attributable to equity holders of
the parent *                                        6    (4,649,849)  (936,577)
                                                            --------   --------

Effect of change in accounting policy
Effect of adoption of AASB 132 and AASB 139 on 1
July 2005 (with 2004 not restated)
Net increase in fair value reserve
Available-for-sale investments - change in
fair value                                          9    39,188,153          -


Other movements in equity arising from transactions with owners as owners are
set out in note 6.

* This amount does not include the impact of changes in accounting policy.



CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
AS AT 31 DECEMBER 2005



                                                   31 Dec 2005    30 June 2005
                                           Note              $               $

Current assets
Cash and cash equivalents                            5,487,651       6,159,540
Trade and other receivables                          1,946,847         213,340
Other financial assets                                     600             600
Other assets                                                 -          72,710
                                                      ---------       ---------
Total current assets                                 7,435,098       6,446,190
                                                      ---------       ---------

Non-current assets
Available-for-sale investments               5      36,638,953       2,495,798
Property, plant and equipment                           58,236          73,897
Exploration and evaluation expenditure              17,563,652      18,068,045
                                                      ---------       ---------
Total non-current assets                            54,260,841      20,637,740
                                                      ---------       ---------
TOTAL ASSETS                                        61,695,939      27,083,930
                                                      ---------       ---------

Current liabilities
Trade and other payables                               252,121         303,247
Employee benefits                                        8,247           7,095
                                                      ---------       ---------
Total current liabilities                              260,368         310,342
                                                      ---------       ---------
TOTAL LIABILITIES                                      260,368         310,342
                                                      ---------       ---------
NET ASSETS                                          61,435,571      26,773,588
                                                      ---------       ---------

Equity
Issued capital                                      34,559,814      34,436,135
Reserves                                            34,925,436          48,455
Accumulated losses                                  (8,049,679)     (7,711,002)
                                                      ---------       ---------
TOTAL EQUITY                                 6      61,435,571      26,773,588
                                                      ---------       ---------


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2005


                                                   31 Dec 2005     31 Dec 2004
                                                             $               $
Cash flows from operating activities
Cash paid to suppliers and employees                  (700,876)       (773,658)
Interest received                                      200,652         128,598
Management fees received                               168,627         293,787
                                                       --------        --------
Net cash used in operating activities                 (331,597)       (351,273)
                                                       --------        --------

Cash flows from investing activities
Acquisition of property, plant and equipment            (2,497)         (6,650)
Exploration expenditure, including overheads
capitalised                                           (461,474)       (308,435)
Proceeds from disposal of exploration assets                 -         852,933
Acquisition of subsidiaries                                  -        (741,782)
Cash paid for other financial assets                         -      (1,183,369)
Proceeds from other financial assets                         -          60,879
                                                       --------        --------
Net cash used in investing activities                 (463,971)     (1,326,424)
                                                       --------        --------

Cash flows from financing activities
Proceeds from the issue of share capital               125,000       5,536,518
Share issue expenses                                    (1,321)       (123,046)
                                                       --------        --------
Net cash from financing activities                     123,679       5,413,472
                                                       --------        --------

Net (decrease) / increase in cash and cash
equivalents                                           (671,889)      3,735,775
Cash acquired on acquisition of subsidiaries                 -          21,126
Cash and cash equivalents at 1 July                  6,159,540       3,289,133
                                                       --------        --------
Cash and cash equivalents at 31 December             5,487,651       7,046,034
                                                       --------        --------


NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Note

1   Significant accounting policies

2   Segment reporting

3   Acquisitions of subsidiaries

4   Interests in joint venture operations

5   Non-current assets - Available-for-sale investments

6   Capital and reserves

7   Contingencies

8   Explanation of transition to AIFRS

9   Changes in accounting policy


NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS


1. SIGNIFICANT ACCOUNTING POLICIES

Global Petroleum Limited (the 'Company') is a company domiciled in Australia.
The condensed consolidated interim financial report of the Company for the six
months ended 31 December 2005 comprise the Company and its subsidiaries
(together referred to as the 'consolidated entity') and the consolidated
entity's interest in associates and jointly controlled entities.

The condensed consolidated interim financial report was authorised for issue by
the directors on 9 March 2006.

(a) Statement of compliance

The condensed consolidated interim financial report is a general purpose
financial report which has been prepared in accordance with Australian
Accounting Standards adopted by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001.

International Financial Reporting Standards ('IFRS') form the basis of
Australian Accounting Standards adopted by the AASB, and for the purpose of this
report are called Australian equivalents to IFRS ('AIFRS') to distinguish from
previous Australian GAAP. The interim financial report of the consolidated
entity also complies with IFRS and interpretations adopted by the International
Accounting Standards Board.

This is the consolidated entity's first AIFRS condensed consolidated interim
financial report for part of the period covered by the first AIFRS annual
financial report and AASB 1 First time adoption of Australian equivalents to
International Financial Reporting Standards. The condensed consolidated interim
financial report does not include all of the information required for a full
annual financial report.

The interim financial report is to be read in conjunction with the most recent
annual financial report, however, the basis of their preparation is different to
that of the most recent annual financial report due to the first time adoption
of AIFRS. This report must also be read in conjunction with any public
announcements made by Global Petroleum Limited during the half-year in
accordance with continuous disclosure obligations arising under the Corporations
Act 2001.

An explanation of how the transition to AIFRS has affected the reported
financial position, financial performance and cash flows of the consolidated
entity is provided in note 8. This note includes reconciliations of equity and
profit or loss for comparative periods reported under Australian GAAP (previous
GAAP) to those reported for those periods under AIFRS.

(b) Basis of preparation

The financial report is presented in Australian dollars.

The financial report is prepared on the historical cost basis except that the
following assets and liabilities are stated at their fair value: financial
instruments classified as available-for-sale.

Non-current assets held for sale are stated at the lower of carrying amount and
fair value less costs to sell.

The preparation of an interim financial report in conformity with AASB 134
Interim Financial Reporting requires management to make judgements, estimates
and assumptions that affect the application of policies and reported amounts of
assets and liabilities, income and expenses.

These estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.

This condensed consolidated interim financial report has been prepared on the
basis of AIFRS in issue that are effective or available for early adoption at
the consolidated entity's first AIFRS annual reporting date, 30 June 2006. Based
on these AIFRS, the Board of Directors have made assumptions about the
accounting policies expected to be adopted when the first AIFRS annual financial
report is prepared for the year ended 30 June 2006.

The consolidated entity has not elected to early adopt any accounting standards
under AIFRS at 31 December 2005. The consolidated entity has elected to early
adopt IFRS 6 Exploration for and Evaluation of Mineral Resources with effect
from 1 July 2005 under IFRS.

The Australian Accounting Standards and UIG Interpretations that will be
effective or available for voluntary early adoption in the annual financial
statements for the period ended 30 June 2006 are still subject to change
therefore cannot be determined with certainty. Accordingly, the accounting
policies for that annual period that are relevant to this interim financial
information will be determined only when the first AIFRS financial statements
are prepared at 30 June 2006.

The preparation of the condensed consolidated interim financial report in
accordance with AASB 134 resulted in changes to the accounting policies as
compared with the most recent annual financial statements prepared under
previous GAAP. Except for the change in accounting policy relating to
classification and measurement of financial instruments (refer note 9), the
accounting policies set out below have been applied consistently to all periods
presented in these condensed consolidated interim financial statements. They
also have been applied in preparing an opening AIFRS balance sheet at 1 July
2004 for the purposes of the transition to Australian Accounting Standards -
AIFRS, as required by AASB 1. The impact of the transition from previous GAAP to
AIFRS is explained in note 8. Where relevant, the accounting policies applied to
the comparative period have been disclosed if they differ from the current
period policy. The accounting policies have been applied consistently throughout
the consolidated entity for the purposes of this condensed consolidated interim
financial report.

(c) Principles of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Company. Control exists when the
Company has the power, directly or indirectly, to govern the financial and
operating policies of an entity so as to obtain benefits from its activities. In
assessing control, potential voting rights that presently are exercisable or
convertible are taken into account. The financial statements of subsidiaries are
included in the condensed consolidated interim financial report from the date
that control commences until the date that control ceases.

Associates

Associates are those entities for which the consolidated entity has significant
influence, but not control, over the financial and operating policies. The
condensed consolidated interim financial statements include the consolidated
entity's share of the total recognised gains and losses of associates on an
equity accounted basis, from the date that significant influence commences until
the date that significant influence ceases. When the consolidated entity's share
of losses exceeds its interest in an associate, the consolidated entity's
carrying amount is reduced to nil and recognition of further losses is
discontinued except to the extent that the consolidated entity has incurred
legal or constructive obligations or made payments on behalf of an associate.

Joint ventures

Joint ventures are those entities over whose activities the consolidated entity
has joint control, established by contractual agreement.

Jointly controlled operations and assets

The interest of the consolidated entity in unincorporated joint ventures and
jointly controlled assets are brought to account by recognising in its financial
statements the assets it controls and the liabilities that it incurs, and the
expenses it incurs and its share of income that it earns from the sale of goods
or services by the joint venture.

Transactions eliminated on consolidation

Intragroup balances, and any unrealised gains and losses or income and expenses
arising from intragroup transactions, are eliminated in preparing the condensed
consolidated interim financial statements.

Unrealised gains arising from transactions with associates and jointly
controlled entities are eliminated to the extent of the consolidated entity's
interest in the entity with adjustments made to the 'Investment in associates'
and 'Share of associate's net profit' accounts.

Unrealised losses are eliminated in the same way as unrealised gains, but only
to the extent that there is no evidence of impairment.

Gains and losses are recognised as the contributed assets are consumed or sold
by the associates and jointly controlled entities or, if not consumed or sold by
the associate or jointly controlled entity, when the consolidated entity's
interest in such entities is disposed of.

(d) Foreign currency

Foreign currency transactions

Transactions in foreign currencies are translated at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated to
Australian dollars at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in the income
statement. Non-monetary assets and liabilities that are measured in terms of
historical cost in a foreign currency are translated using the exchange rate at
the date of the transaction. Non-monetary assets and liabilities denominated in
foreign currencies that are stated at fair value are translated to Australian
dollars at foreign exchange rates ruling at the dates the fair value was
determined.

Financial statements of foreign operations

The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on consolidation, generally are translated to
Australian dollars at foreign exchange rates ruling at the balance sheet date.
The revenues and expenses of foreign operations, excluding foreign operations in
hyperinflationary economies, are translated to Australian dollars at rates
approximating the foreign exchange rates ruling at the dates of the
transactions. The revenues, expenses, assets and liabilities of foreign
operations in hyperinflationary economies are translated to Australian dollars
at the foreign exchange rates ruling at the reporting date. Foreign exchange
differences arising on retranslation are recognised directly in a separate
component of equity.

Prior to translating the financial statements of foreign operations in
hyperinflationary economies, the financial statements, including comparatives,
are restated to account for changes in the general purchasing power of the local
currency. The restatement is based on relevant price indices at the reporting
date.

Net investment in foreign operations

Exchange differences arising from the translation of the net investment in
foreign operations are taken to the translation reserve. They are released into
the income statement upon disposal.

In respect of all foreign operations, any differences that have arisen before 1
July 2004, the date of transition to AIFRS, are presented as a separate
component of equity (see note 8).

(e) Exploration and evaluation expenditure

Exploration and evaluation costs are accumulated in respect of each separate
area of interest.

Exploration and evaluation costs are carried forward where right of tenure of
the area of interest is current and they are expected to be recouped through
sale or successful development and exploitation of the area of interest, or
where exploration and evaluation activities in the area of interest have not yet
reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.

When an area of interest is abandoned or the directors decide that it is not
commercial, any accumulated costs in respect of that area are written off in the
financial period the decision is made.

The carrying amounts of exploration and evaluation expenditure are reviewed in
accordance with the impairment policy (see accounting policy (j)). The
consolidated entity performs an impairment test on capitalised exploration and
evaluation costs if there is an impairment indicator such as:

   • the right to explore has expired during the period or will expire in the
     near future and is not expected to be renewed
   • substantive expenditure on further exploration for and evaluation of
     mineral resources in the specific area is neither budgeted nor planned
   • exploration and evaluation in the specific area has not led to the
     discovery of commercially viable quantities of mineral resources and the
     entity has decided to discontinue such activities in the specific area
   • sufficient data exists to indicate that the carrying amount of the asset
     is unlikely to be recovered in full from successful development or by sale
     even if development in the specific area is likely to proceed.

In the event of impairment, write-downs to the income statement are made. Any
subsequent increments are also recognised in the income statement to the extent
that it is a reversal of the previous write-down.

(f) Property, plant and equipment

Owned assets

Items of property, plant and equipment are stated at cost less accumulated
depreciation and impairment losses (see accounting policy (j)). The cost of
acquired assets includes (i) the initial estimate at the time of installation
and during the period of use, when relevant, of the costs of dismantling and
removing the items and restoring the site on which they are located, and (ii)
changes in the measurement of existing liabilities recognised for these costs
resulting from changes in the timing or outflow of resources required to settle
the obligation or from changes in the discount rate.

Where parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items of property, plant and
equipment.

Leased assets

Leases in terms of which the consolidated entity assumes substantially all of
the risks and rewards of ownership are classified as finance leases. Other
leases are classified as operating leases. Lease payments are accounted for as
described in accounting policy (o).

Subsequent costs

The consolidated entity recognises in the carrying amount of an item of
property, plant and equipment the cost of replacing part of such an item when
that cost is incurred if it is probable that the future economic benefits
embodied within the item will flow to the consolidated entity and the cost of
the item can be measured reliably. All other costs are recognised in the income
statement as an expense as incurred.

Depreciation

Depreciation is charged to the income statement on a straight-line or reducing
balance basis over the estimated useful lives of each part of an item of
property, plant and equipment. The depreciation rates used for each class of
asset in the current and comparative periods are as follows:


                                                        2005             2004
Plant and equipment                           
- reducing balance method of depreciation      11.25% to 40%    11.25% to 40%
- straight line method of depreciation                   40%              40%

The residual value, if not insignificant, is reassessed annually.

(g) Investments

Investments in debt and equity securities

Current accounting policy

Financial instruments held by the consolidated entity classified as being
available-for-sale are stated at fair value, with any resultant gain or loss
recognised directly in equity, except for impairment losses and, in the case of
monetary items such as debt securities, foreign exchange gains and losses. Where
these investments are derecognised, the cumulative gain or loss previously
recognised directly in equity is recognised in profit or loss. Where these
investments are interest-bearing, interest calculated using the effective
interest method is recognised in the income statement.

The fair value of financial instruments classified as available-for-sale is
their quoted bid price at the balance sheet date.

Financial instruments classified as available-for-sale investments are
recognised / derecognised by the consolidated entity on the date it commits to
purchase / sell the investments. Securities held to maturity are recognised /
derecognised on the day they are transferred to / by the consolidated entity.

Comparative period policy

Investments in other listed entities are measured at the lower of cost and
recoverable amount.

The quantitative effect of the change in accounting policy is set out in note 9.

(h) Trade and other receivables

Trade and other receivables are stated at cost less impairment losses (see
accounting policy (j)).

(i) Cash and cash equivalents

Cash and cash equivalents comprises cash balances and call deposits with an
original maturity of three months or less. Bank overdrafts that are repayable on
demand and form an integral part of the consolidated entity's cash management
are included as a component of cash and cash equivalents for the purpose of the
statement of cash flows.

(j) Impairment

The carrying amounts of the consolidated entity's assets are reviewed at each
reporting date to determine whether there is any indication of impairment. If
any such indication exists, the asset's recoverable amount is estimated (see
below).

An impairment loss is recognised whenever the carrying amount of an asset of its
cash generating unit exceeds its recoverable amount. Impairment losses are
recognised in the income statement unless the asset has previously been
revalued, in which case the impairment loss is recognised as a reversal to the
extent of that previous revaluation with any excess recognised through the
income statement.

Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to the
cash-generating unit (group of units) and then, to reduce the carrying amount of
the other assets in the unit (group of units) on a pro rata basis.

When a decline in the fair value of an available-for-sale financial asset has
been recognised directly in equity and there is objective evidence that the
asset is impaired, the cumulative loss that had been recognised directly in
equity is recognised in profit or loss even though the financial asset has not
been derecognised. The amount of the cumulative loss that is recognised in
profit or loss is the difference between the acquisition cost and current fair
value, less any impairment loss on that financial asset previously recognised in
profit or loss.

Calculation of recoverable amount

The recoverable amount of assets is the greater of their fair value less costs
to sell and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks
specific to the asset. For an asset that does not generate largely independent
cash inflows, the recoverable amount is determined for the cash-generating unit
to which the asset belongs.

Reversals of impairment

An impairment loss in respect of an investment in an equity instrument
classified as available-for-sale is not reversed through profit or loss.

In respect of other assets, an impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset's carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.

(k) Share capital

Transaction costs

Transaction costs of an equity transaction are accounted for as a deduction from
equity, net of any related income tax benefit.

(l) Employee benefits

Wages, salaries and annual leave

Liabilities for employee benefits for wages, salaries and annual leave represent
present obligations resulting from employees' services provided to reporting
date, calculated at undiscounted amounts based on remuneration wage and salary
rates that the consolidated entity expects to pay as at reporting date,
including related on-costs.

Defined contribution plans

Obligations for contributions to defined contribution pension plans are
recognised as an expense in the income statement as incurred.

Share-based payment transactions

The fair value of options granted is recognised as an employee expense with a
corresponding increase in equity. The fair value is measured at grant date and
spread over the period during which the employees become unconditionally
entitled to the options. The fair value of the options granted is measured using
the binomial method, taking into account the terms and conditions upon which the
options were granted. The amount recognised as an expense is adjusted to reflect
the actual number of share options that vest except where forfeiture is only due
to market-related conditions.

Options granted after 7 November 2002 that vested before 1 January 2005 have not
been recognised on transition to AIFRS, as permitted by AASB 1 First Time
Adoption of Australian Equivalents to International Financial Reporting
Standards.

(m) Trade and other payables

Trade and other payables are stated cost.

(n) Revenue, net financing income and other income

Rendering of services

Revenue from management services is recognised in the income statement in line
with the management agreements and contracts.

Net financing income

Net financing income comprises interest receivable on funds invested, dividend
income and foreign exchange gains and losses.

Interest income is recognised in the income statement as it accrues, using the
effective interest method. Dividend income is recognised in the income statement
on the date the entity's right to receive payments is established. In the case
of distributions from controlled entities recognised by the parent entity, this
date is when dividends are declared by the controlled entities.

Other income - Sale of non-current assets

The proceeds of non-current asset sales are recognised at the date control of
the asset passes to the buyer, usually when an unconditional contract of sale is
signed. The gain or loss on disposal is calculated as the difference between the
carrying amount of the asset at the time of disposal and the net proceeds on
disposal (including incidental costs).

(o) Expenses

Operating lease payments

Payments made under operating leases are recognised in the income statement on a
straight-line basis over the term of the lease. Lease incentives received are
recognised in the income statement as an integral part of the total lease
expense and spread over the lease term.

(p) Income tax

Income tax on the income statement comprises current and deferred tax. Income
tax is recognised in the income statement except to the extent that it relates
to items recognised directly in equity, in which case it is recognised in
equity.

Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantially enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method, providing for
temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. The
following temporary differences are not provided for: the initial recognition of
assets or liabilities that affect neither accounting nor taxable profit and
differences relating to investments in subsidiaries to the extent that they will
probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities,
using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised. Deferred tax assets are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.

Additional income taxes that arise from the distribution of dividends are
recognised at the same time as the liability to pay the related dividend.

Tax consolidation

The Company and its wholly-owned Australian resident entities have formed a tax
consolidated group with effect from 1 July 2003 and are therefore taxed as a
single entity from that date. The head entity within the tax-consolidated group
is Global Petroleum Limited.

Current tax expense / income, deferred tax liabilities and deferred tax assets
arising from temporary differences of the members of the tax-consolidated group
are recognised in the separate financial statements of the members of the
tax-consolidated group using the 'separate taxpayer within group' approach by
reference to the carrying amounts in the separate financial statements of each
entity and the tax values applying under tax consolidation.

Current tax liabilities and assets and deferred tax assets arising from unused
tax losses and tax credits of the members of the tax-consolidated group are
recognised by the Company (as head entity in the tax-consolidated group).
Deferred tax assets and deferred tax liabilities are measured by reference to
the carrying amounts of the assets and liabilities in the Company's balance
sheet and their tax values applying under tax consolidation.

Any current tax liabilities (or assets) and deferred tax assets arising from
unused tax losses assumed by the head entity from the subsidiaries in the tax
consolidated group will be recognised as amounts receivable or payable to other
entities in the tax consolidated group in conjunction with any tax funding
arrangement amounts. Any difference between these amounts will be recognised by
the Company as an equity contribution to or distribution from the subsidiary.
Distributions would firstly reduce the carrying amount of the investment in the
subsidiary and would then be recognised as revenue. The Company recognises
deferred tax assets arising from unused tax losses of the tax-consolidated group
to the extent that it is probable that future taxable profits of the
tax-consolidated group will be available against which the asset can be
utilised.

Any subsequent period adjustments to deferred tax assets arising from unused tax
losses assumed from subsidiaries are recognised by the head entity only.

(q) Segment reporting

A segment is a distinguishable component of the consolidated entity that is
engaged in providing products or services within a particular economic
environment (geographical segment) which is subject to risks and rewards that
are different from those of other segments.

(r) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and
services tax (GST), except where the amount of GST incurred is not recoverable
from the taxation authority. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net
amount of GST recoverable from, or payable to, the Australian Taxation Office
(ATO) is included as a current asset or liability in the statement of financial
position.

Cash flows are included in the statement of cash flows on a gross basis. The GST
components of cash flows arising from investing and financing activities which
are recoverable from, or payable to, the ATO are classified as operating cash
flows.

2. SEGMENT REPORTING

Segment information is presented in the condensed consolidated interim financial
statements in respect of the consolidated entity's geographical segments, which
are the primary basis of segment reporting. The geographical segment reporting
format reflects the consolidated entity's management and internal reporting
structure.

Inter-segment pricing is determined on an arm's length basis. Segment results
include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Segment capital expenditure is the total cost
incurred during the period to acquire segment assets that are expected to be
used for more than one period.

Geographical segments

The consolidated entity's geographical segments are as follows:


31 Dec                                     Falkland    
2005    Australia     Europe     Africa     Islands      Iraq Indonesia Eliminations Consolidated
                $          $          $           $         $         $            $            $
                                          
Segment
revenue
External
revenue         -          -          -      62,111         -         -            -       62,111
           -------     ------     ------     -------    ------    ------     --------     --------
Total                                                                                      
revenue                                                                                    62,111
                                                                                          --------
Result
Segment  
result   (280,620)  (203,531)  (943,158)  1,100,182   (11,550)        -            -     (338,677)   
           -------     ------     ------     -------    ------    ------     --------     --------
Income                                                                                          
tax                                                                                        
expense                                                                                         -
                                                                                          --------
Loss for
the                                                                                      
period                                                                                   (338,677)
                                                                                          --------
31 Dec
2004
Segment
revenue
External
revenue         -          -          -     270,817         -         -            -      270,817
           -------     ------     ------     -------    ------    ------     --------     --------
Total                                                                            
revenue                                                                                   270,817
                                                                                          --------
Result
Segment  
result    (490,530)  (270,165)       -     (114,578)  (32,057)  (29,247)           -     (936,577) 
           -------     ------     ------     -------    ------    ------     --------     --------
Income                                                                                 
tax                                                                               
expense                                                                                         -
                                                                                          --------
Loss for
the                                                                             
period                                                                                   (936,577)
                                                                                          --------

Business segments

The consolidated entity operates within one business segment, being the
petroleum and mineral exploration industry. Accordingly, the consolidated
entity's total revenue and loss for the period relates to that business segment.

3. ACQUISITIONS OF SUBSIDIARIES

The consolidated entity did not gain control over any entities during the
current half-year period.

During the corresponding half-year period, the Company acquired 100% of Astral
Petroleum Limited and its controlled entities under the terms of an acquisition
agreement approved by shareholders at the annual general meeting on 25 November
2004. In each case, the consolidated entity's interest is 100%.

Name of entity                                    Country of incorporation
Astral Petroleum Limited                          United Kingdom
Astral Petroleum Resources (Ireland) Ltd          British Virgin Islands
Astral Petroleum (Malta) Ltd                      British Virgin Islands

The consideration payable under the acquisition agreement consists of three
tranches. The Company paid cash of £195,000 ($504,322) and issued 1 million
ordinary shares in December 2004 (Tranche 1). Tranches 2 and 3 are contingent on
certain conditions relating to the farmout of the interests acquired by the
consolidated entity in the Irish and Maltese permit areas (refer note 7). The
effect of the results of the Astral Petroleum Limited group on the loss for the
six months ended 31 December 2004 was not material.

4. INTERESTS IN JOINT VENTURE OPERATIONS

The consolidated entity holds the following interests in joint ventures, whose
principal activities are in petroleum exploration.

                                               Joint venture % interest
                                                         held
                                                     Consolidated
Joint venture      Principal activity          31 Dec 2005  31 Dec 2004
                                                         %            %
Kenya              Petroleum exploration              20.0         20.0
TM Services -
Global             
(Iraq)             Petroleum exploration              50.0            -
Fira - Global      
(Iraq)             Production sharing                    -         20.0
                   applications

5. NON-CURRENT ASSETS - Available-for-sale investments

                                               31 Dec 2005       30 June 2005

Shares - listed - at fair value                 36,638,953                  -
Shares - listed - at cost                                -          2,495,798
                                                   ---------           --------
                                                36,638,953          2,495,798
                                                   ---------          ---------

Investments in listed shares at cost at 30 June 2005 represented investments in
Falkland Gold and Minerals Limited ('FGML') and Falkland Oil and Gas Limited
('FOGL'). Under previous GAAP, the consolidated entity recorded
available-for-sale investments at cost. In accordance with AIFRS these
investments have been recognised at fair value (current market value) with
effect from 1 July 2005. Refer note 9 for further details of this change in
accounting policy.

The consolidated entity disposed of its investment in FGML in December 2005 for
net proceeds of $1,827,416 and recorded a net gain on disposal of $1,093,589.

6. CAPITAL AND RESERVES

Reconciliation of movement in capital and reserves attributable to equity
holders of the parent entity


Consolidated       Share    Fair value     Foreign   Accumulated         Total       
                 capital       reserve    currency        losses        equity
                                       translation
                                           reserve
                       $             $           $             $             $

Balance at 1
July 2005     34,436,135             -      48,455    (7,711,002)   26,773,588
Total
recognised
income and
expense                -    (4,311,172)          -      (338,677)   (4,649,849)
Effect of
change in
accounting
policy                 -    39,188,153           -             -    39,188,153
(note 9)
Shares           
issued           125,000             -           -             -       125,000
Share issue
expenses          (1,321)            -           -             -        (1,321)
                 --------      --------    --------      --------      --------
Balance at
31            
December          
2005          34,559,814    34,876,981      48,455    (8,049,679)   61,435,571
                 --------      --------    --------      --------      --------


Share capital

The consolidated entity recorded the following amounts within shareholders'
equity as a result of the issuance of ordinary shares.


                                            Number of   Issue price 
                                      ordinary shares             $            $

Balance at 1 July 2005                   169,794,787                  34,436,135
Shares issued on exercise of options
23 September 2005                            500,000          0.25       125,000

Share issue expenses                                                      (1,321)
                                           ----------     --------     ---------
Balance at 31 December 2005 - fully      
paid                                       170,294,787                34,559,814
                                           ----------     --------     ---------


7. CONTINGENCIES

Other than as set out below, there were no changes in contingent liabilities
since 30 June 2005.

Acquisition of Astral Petroleum Limited - contingent consideration

The Company received approval at the 24 November 2005 AGM for an extension of
time for the issue of the contingent consideration payable upon the acquisition
of Astral Petroleum Limited. The effect of the approval is that if the
consolidated entity enters into a farmout in relation to the Irish permit area
that satisfies the conditions under the acquisition agreement by 30 June 2006,
the Company will be required to issue an additional 4 million ordinary shares
(Tranche 2) to the vendors. If the consolidated entity enters into a farmout in
relation to the Maltese permit area that satisfies the conditions under the
acquisition agreement by 30 June 2006, the Company will be required to issue a
further 4 million ordinary shares (Tranche 3) to the vendors.

Guarantees

Bank guarantees of $28,000 in relation to prospecting activities in Queensland,
Australia, were cancelled during the half-year.

8. EXPLANATION OF TRANSITION TO AIFRS

As stated in note 1(a), these are the consolidated entity's first condensed
consolidated interim financial statements for part of the period covered by the
first AIFRS annual consolidated financial statements prepared in accordance with
Australian Accounting Standards - AIFRS.

The accounting policies in note 1 have been applied in preparing the condensed
consolidated interim financial statements for the six months ended 31 December
2005, the comparative information for the six months ended 31 December 2004, the
financial statements for the year ended 30 June 2005 and the preparation of an
opening AIFRS balance sheet at 1 July 2004 (the consolidated entity's date of
transition).

In preparing its opening AIFRS balance sheet, comparative information for the
six months ended 31 December 2004 and financial statements for the year ended 30
June 2005, the consolidated entity has adjusted amounts reported previously in
financial statements prepared in accordance with its previous basis of
accounting (previous GAAP).

An explanation of how the transition from previous GAAP to AIFRS has affected
the consolidated entity's financial position, financial performance and cash
flows is set out in the following tables and the notes that accompany the
tables. Only those balances where there has been a material impact have been
disclosed below.


Reconciliation of equity
                                 Note      30 June        31 Dec        1 July                               
                                           2005***        2004**         2004*
                                                 $             $             $

Total equity under previous GAAP        26,948,866    27,878,189    22,824,220
Adjustments to reserves:
Foreign currency translation     
reserve                          (a)        48,455        44,981        44,981
Accumulated losses:
Exploration and evaluation
expenditure                      (b)      (223,733)     (574,477)     (367,403)
                                           --------      --------      --------
Total equity under AIFRS                26,773,588    27,348,693    22,501,798
                                           --------      --------      --------

* This column represents the adjustments as at the date of transition to AIFRS.

** This column represents the cumulative adjustments as at the date of
transition to AIFRS and those for the half-year ended 31 December 2004.

*** This column represents the cumulative adjustments as at the date of
transition to AIFRS and those for the year ended 30 June 2005.

Notes to the reconciliation of equity

(a) Under AASB 121 The Effects of Changes in Foreign Exchange Rates, the assets
and liabilities of the consolidated entity's controlled foreign operations with
a functional currency other than Australian currency are translated at the
closing exchange rate at the balance date, with exchange differences arising on
translation recognised as a separate component of equity. Under previous GAAP t
he assets and liabilities of foreign operations that are integrated are
translated using the temporal method whereby monetary assets and liabilities are
translated into Australian currency at rates of exchange current at balance
date, while non-monetary items are translated at exchange rates current when the
transactions occurred, with exchange differences arising on translation brought
to account in the statement of financial performance.

The aggregate impact on the foreign currency translation reserve and exploration
and evaluation expenditure carried in the balance sheet of the consolidated
entity at 1 July 2004 and 31 December 2004 is an increase of $44,981. The
aggregate impact on the foreign currency translation reserve and exploration and
evaluation expenditure carried in the balance sheet of the consolidated entity
at 30 June 2005 is an increase of $48,455.

(b) Under AASB 6 Exploration for and Evaluation of Mineral Resources, costs
incurred before an entity has legal right of access to an exploration area must
be expensed. For the consolidated entity, at 1 July 2004 an amount of $367,403
was reclassified from exploration and evaluation expenditure carried in the
balance sheet to accumulated losses. The adjustment to profit and loss for the
half-year ended 31 December 2004 was $207,074 (increase in loss before tax) and
decrease in capitalised exploration and evaluation expenditure as at 31 December
2004 of $207,074. The adjustment to profit and loss for the year ended 30 June
2005 was $143,670 (decrease in loss before tax) and decrease in capitalised
exploration and evaluation expenditure as at 30 June 2005 of $223,733. An amount
of $350,744 relating to Iraq had been written off under previous GAAP in the six
months ended 30 June 2005. Under AIFRS, $318,687 of this amount was reclassified
from exploration and evaluation expenditure carried in the balance sheet to
accumulated losses at 1 July 2004, and the remaining $32,057 was written off in
the six months ended 31 December 2004.


Reconciliation of loss for 2005

                                Note     For the year         For the 6 months 
                                                ended                    ended
                                         30 June 2005              31 Dec 2004
                                                    $                        $

Loss as reported under previous
GAAP                                       (1,772,832)                (729,503)
Exploration and evaluation
expenditure                     (b)           143,670                 (207,074)
                                           -----------              -----------
Loss under AIFRS                           (1,629,162)                (936,577)
                                           -----------              -----------

Loss per share

Basic loss per share and diluted loss per share for the six months ended 31
December 2004 under previous GAAP were both 0.46 cents. Under AIFRS the amount
is 0.59 cents. Basic loss per share and diluted loss per share for the year
ended 30 June 2005 under previous GAAP were both 1.08 cents. Under AIFRS the
amount is 0.99 cents.

Revenue - proceeds on sale of non-current assets

Under AIFRS the gain or loss on the disposal of non-current assets is recognised
on a net basis as a gain or loss rather than as under previous GAAP which
separately recognised the consideration received as revenue. This resulted in a
reduction in revenue of $50 and $850,745 for the consolidated entity for the
financial year ended 30 June 2005 and the half-year ended 31 December 2004.

Statement of cash flows

There are no material differences between the statement of cash flows presented
under AIFRS and the statement of cash flows presented under previous GAAP.

9. CHANGES IN ACCOUNTING POLICY

Reconciliation of financial instruments as if AASB 139 was applied at 1 July
2005

In the current financial year the consolidated entity adopted AASB 132 Financial
Instruments: Disclosure and Presentation and AASB 139 Financial Instruments:
Recognition and Measurement. This change in accounting policy has been adopted
in accordance with the transition rules contained in AASB 1, which does not
require the restatement of comparative information for financial instruments
within the scope of AASB 132 and AASB 139.

The adoption of AASB 139 has resulted in the consolidated entity recognising
available-for-sale investments as assets at fair value. This change has been
accounted for by adjusting the opening balance of equity (fair value reserve) at
1 July 2005.

Under previous GAAP, the consolidated entity recorded available-for-sale
investments at cost. In accordance with AIFRS, they are recognised at fair
value. The effect on the consolidated entity is to increase available-for-sale
investments and fair value reserve by $39,188,153 at 1 July 2005, representing
the excess of fair value over the previous GAAP carrying value of the
investments in Falkland Oil and Gas Limited and Falkland Gold and Minerals
Limited (refer note 5).

Under previous GAAP, the consolidated entity classified prepayments as other
assets. In accordance with AIFRS, prepayments of $63,033 at 31 December 2005
have been classified as trade and other receivables. The comparative of $72,710
for 30 June 2005 has not been restated.

The transitional provisions will not have any effect in future reporting
periods.

DIRECTORS' DECLARATION

In the opinion of the directors of Global Petroleum Limited ('the Company'):

1. the financial statements and notes, set out on pages 9 to 26, are in
   accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the financial position of the consolidated
entity as at 31 December 2005 and of its performance, as represented by the
results of its operations and cash flows, for the half-year ended on that date;
and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001; and

2. there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors.


J D Armstrong
Director
Brisbane
9 March 2006


INDEPENDENT REVIEW REPORT TO THE MEMBERS OF
GLOBAL PETROLEUM LIMITED

Scope

The financial report and directors' responsibility

The financial report comprises the condensed consolidated interim statement of
income, statement of changes in recognised income and expense, balance sheet,
statement of cash flows, accompanying notes 1 to 9 to the financial statements,
and the directors' declaration set out on pages 9 to 27 for the Global Petroleum
Limited consolidated entity ('consolidated entity'), for the half-year ended 31
December 2005. The consolidated entity comprises Global Petroleum Limited ('the
Company') and the entities it controlled during that half-year.

The directors of the Company are responsible for the preparation and true and
fair presentation of the financial report in accordance with the Corporations
Act 2001. This includes responsibility for the maintenance of adequate
accounting records and internal controls that are designed to prevent and detect
fraud and error, and for the accounting policies and accounting estimates
inherent in the financial report. The directors are also responsible for
preparing the relevant reconciling information regarding adjustments required
under the Australian Accounting Standard AASB 1 First-Time Adoption of
Australian equivalents to International Financial Reporting Standards.

Review approach

We conducted an independent review in order for the Company to lodge the
financial report with the Australian Securities and Investments Commission. Our
review was conducted in accordance with Australian Auditing Standards applicable
to review engagements.

We performed procedures in order to state whether on the basis of the procedures
described anything has come to our attention that would indicate the financial
report does not present fairly, in accordance with the Corporations Act 2001,
Australian Accounting Standard AASB 134 Interim Financial Reporting and other
mandatory financial reporting requirements in Australia, a view which is
consistent with our understanding of the consolidated entity's financial
position, and of its performance as represented by the results of its operations
and cash flows.

We formed our statement on the basis of the review procedures performed, which
were limited primarily to:

   • enquiries of company personnel; and
   • analytical procedures applied to the financial data.

While we considered the effectiveness of management's internal controls over
financial reporting when determining the nature and extent of our procedures,
our review was not designed to provide assurance on internal controls.

The procedures do not provide all the evidence that would be required in an
audit, thus the level of assurance is less than given in an audit. We have not
performed an audit and, accordingly, we do not express an audit opinion.

A review cannot guarantee that all material misstatements have been detected.

Statement

Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe the half-year financial report of Global Petroleum
Limited is not in accordance with:

(a) the Corporations Act 2001, including:

    (i) giving a true and fair view of the consolidated entity's financial 
        position as at 31 December 2005 and of its performance for the half-year 
        ended on that date; and

    (ii)complying with Australian Accounting Standard AASB 134 Interim Financial
        Reporting and the Corporations Regulations 2001; and

(b) other mandatory financial reporting requirements in Australia.


KPMG

Robert S Jones
Partner
Brisbane
9 March 2006



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