Quarterly Report

Global Petroleum Ltd
31 January 2007



           Global Petroleum Limited - December 2006 Quarterly Report


Kenya (Global 20%)


The Company began drilling its first well in the December quarter. The well,
Pomboo No. 1 in Licence L-5, Kenya, spudded on the 2nd of December 2006. The
Company's weekly report dated 28 December 2006 reported that the depth reached
was 2,944 metres (751 metres below the seabed).

The costs associated with Global's 20% in respect of this well are fully carried
so no costs were incurred by the Company. The other joint venture parties are:

   • Woodside Energy 30% (and operator)
   • Dana Petroleum 30% *
   • Repsol Exploracion 20%*


Since the end of the quarter, on the 23rd of January, Woodside as operator of
the Company's Kenya Joint Venture announced that Pomboo No. 1 had reached a
total depth of 4,887 metres and would be plugged and abandoned. The well
encountered 'in excess of 200 metres of moderate to good quality reservoir
sandstones' in the primary target zone from 4,685m to the total depth but
without oil or gas.


It had been expected that the drilling rig would move to Licence L-7 immediately
following Pomboo to drill Sokwe South No. 1. However at a meeting of the Joint
Venture on the 24th of January it was decided not to drill Sokwe South No. 1 in
this drilling campaign. The voting equity of Woodside and Repsol as farminees,
was sufficient to make this decision binding on the Joint Venture. The Company's
announcement dated 25th January advised shareholders of this outcome.


While there are numerous prospects and leads in our Kenya Licences L-5 and L-7,
and Pomboo has established the presence of reservoirs and seals, the well lacked
oil and gas shows. The JV has decided that the next phase of exploration should
be determined after a comprehensive technical assessment of the relevance and
implications of the new information obtained from Pomboo. This work is expected
to occur over the next three to six months.


Not drilling Sokwe South No. 1 in this drilling campaign is a disappointing
result when shareholders were expecting the Company to be participating in two
wells in Kenya in this drilling programme.


However, when the Woodside review is completed in 3 to 6 months time, the Joint
Venture will agree the forward plan for L-5 and L-7 - subject to the
acceptability of the plan to the Kenya Government.


The costs associated with Global's 20% in L-5 and L-7 are carried for all
activities through the drilling of one well in each Licence. Woodside is
contractually obliged to drill these two wells, - one each in L-5 and L-7. Only
one well, Pomboo in L-5, has so far been drilled.


Refer also to Woodside's release 'Pomboo-1 Drilling Result' (23/1/07) and other
Global releases in late 2006 and on the 25th of January 2007.


*Footnote: Another transaction is pending which, subject to the necessary
permissions, will result in the transfer of a 3% interest in L-5 and L-7 from
Dana to Repsol, resulting in Repsol having a 23% interest in L-5 and L-7 and
Dana a 27% interest.


Falkland Oil and Gas Limited ('FOGL') (Global shareholding 14.0%)


In its six monthly report for the period ended 30 September 2006 (dated 21/12/
06) FOGL noted that it had raised £8 million via a convertible loan note, that
an independent technical report by TRACS International assessed that in the 10
prospects on which they focussed that the risked prospective resource potential
was 863 million barrels nett to FOGL, and that the forward program involved a
Controlled Source Electro-Magnetic Survey (CSEM), further 2D seismic and
seafloor coring surveys targeting the Company's top 20 prospects. FOGL's goal
was stated to be 'secure a rig during 2007 and commence drilling in 2008'.


At a FOGL share price of 92p/share (as at 26/1/07), Global's shareholding is
valued at A$29.9m (17 cents/share).


Malta Exploration Study Agreement Area 3 - Blocks 4 & 5 (Global 80%)


Since the last Quarterly Report, RWE obtained the services of seismic company
Fugro who recorded 852km of new 2D seismic lines in November last year. This
work, together with reprocessing of other seismic surveys in the Study Area, and
the acquisition of new magnetic and gravity data has satisfied the Malta
Government's Study area work commitment.


The Malta Government has extended the Study Agreement to the 31/03/07 to enable
RWE as operator of the project to interpret the new and reprocessed information.


When this work is complete, the Joint Venture (RWE and Global) will make a
decision as to whether to enter a Production Sharing Contract with the Malta
Government which is likely to involve a well commitment. Global's 30% share
(including 3% of behalf of a UK marketing agency that assisted Global in the
farm-in process) of the costs of such a well would be fully carried by RWE.


Ireland Licence Option 03/3 (Global 100%)

The Company's campaign to introduce a new company to this project has not been
successful. Discussions with the Petroleum Affairs Division of the Ireland
Department of Communications, Marine and Natural Resources indicated that no
further extensions to the option deadline of the 31st of December 2006 would be
available and that the only route available to Global was to enter a licence
with a well commitment. As a farminee was not found to share the risk and the
cost of such well by the end of last year, the Licence Option has now
terminated.


Outlook


When available, the work program timing implications of the planned review of
L-5 and L-7 together with the results of the ongoing work by FOGL and the
decision by RWE, will be considered by Directors in regard to the most
appropriate way forward for the Company.


John Armstrong
Executive Chairman

The technical information in this report was prepared by Dr John Armstrong PhD,
BSc (1st Hons) Geo, executive Chairman of Global Petroleum Limited who has 35
years experience in the upstream oil and gas industry. The information has been
reviewed as to its reliability by Mr Wal Muir BSc Hons (UNSW) MBA (UQ), who is a
partner in MBA Petroleum Consultants. MBA provides independent technical advice
to Global. Wal Muir has over 27 years experience in the petroleum exploration
industry both in Australia and overseas. He is a Distinguished Member of the
Petroleum Exploration Society of Australia and a member of the Australian
Society of Exploration Geophysicists.


Rule 5.3

                                  Appendix 5B


Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.



Name of entity

GLOBAL PETROLEUM LIMITED

ABN                                      Quarter ended ('current quarter')

68 064 120 896                           31 DECEMBER 2006           
                           


Consolidated statement of cash flows

                                            Current   Year to date
                                            quarter     (6 months)
Cash flows related to operating activities   $A'000         $A'000                         
                                            ----------------------
                                                         
1.1  Receipts from product sales and              
     related debtors                              -              -


1.2  Payments for 
     (a) exploration and evaluation           (104)          (200)                          
     (b) development                              -              -                                           
     (c) production                               -              -                                                  
     (d) administration                       (416)          (865)
                                              
1.3  Dividends received                           -              -
1.4  Interest and other items of a              
     similar nature received                    106            205
1.5  Interest and other costs of                  
     finance paid                                 -              -
1.6  Income taxes paid                            -              -
1.7  Other - management fees                     15             25
                                            ----------------------

     Net Operating Cash Flows                 (399)          (835)
                                            ----------------------

     Cash flows related to investing activities
1.8  Payment for purchases of:                
     (a) prospects                                -              -
     (b) equity investments                       -              -
     (c) other fixed assets                       -            (2)
                                                  
1.9  Proceeds from sale of: 
     (a) prospects                                -            179
     (b)equity investments                        -              -
     (c)other fixed assets                        -              -
                                                 
1.10 Loans to other entities                      -              -
1.11 Loans repaid by other entities               -              -
1.12 Other (provide details if                    -              -
     material)

     Net investing cash flows                     -            177
                                             ---------------------
1.13 Total operating and investing
     cash flows (carried forward)             (399)          (658)
                                             ---------------------



     Cash flows related to financing
     activities

1.14 Proceeds from issues of shares,            
     options, etc.                              538            538
1.15 Proceeds from sale of forfeited              
     shares                                       -              -
1.16 Proceeds from borrowings                     -              -
1.17 Repayment of borrowings                      -              -
1.18 Dividends paid                               -              -
1.19 Other (provide details if                  
     material)                                  (4)            (4)
                                            ----------------------
     Net financing cash flows                   534            534
                                            ----------------------

     Net increase (decrease) in cash held       135          (124)
     
1.20 Cash at beginning of quarter/            
     year to date                             6,732          6,991
1.21 Exchange rate adjustments to                 
     item 1.20                                    -              -
                                            ----------------------
1.22 Cash at end of quarter                   6,867          6,867
                                            ----------------------

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related
entities

                                                          Current
                                                          quarter
                                                           $A'000

1.23 Aggregate amount of payments to the parties              
     included in item 1.2                                     147
                                                        
1.24 Aggregate amount of loans to the parties                   
     included in item 1.10                                      -
                                                       

1.25 Explanation necessary for an understanding of the
     transactions
     1.23 - Payment of salaries/fees to directors under approved
            agreements



Non-cash financing and investing activities

2.1  Details of financing and investing transactions which have
     had a material effect on consolidated assets and liabilities
     but did not involve cash flows


2.2  Details of outlays made by other entities to establish or
     increase their share in projects in which the reporting
     entity has an interest

Financing facilities available
Add notes as necessary for an understanding of the position.

                               Amount available       Amount used
                                         $A'000            $A'000
                               ----------------------------------
3.1  Loan facilities                        Nil               N/a                             
3.2  Credit standby            
     arrangements                           Nil               N/a
                               




Estimated cash outflows for next quarter

                                                      $A'000
                                                      ------
4.1  Exploration and evaluation                          100                                                    
4.2  Development                                           -
                                                      ------
     Total                                               100
                                                      ------

Reconciliation of cash

Reconciliation of cash at the end of       Current   Previous
the quarter (as shown in the               quarter    quarter
consolidated statement of cash flows)       $A'000     $A'000
to the related items in the accounts       ------------------
is as follows.        

5.1  Cash on hand and at bank                   85         55
5.2  Deposits at call                        6,782      6,677
5.3  Bank overdraft                              -          -
5.4  Other (provide details)                     -          -
                                           ------------------
     Total: cash at end of quarter
     (item 1.22)                             6,867      6,732



Changes in interests in mining tenements

                                    Nature of     Interest at      Interest
                         Tenement    interest       beginning     at end of
                        reference  (note (2))      of quarter       quarter
                       ----------------------------------------------------
                                   
6.1  Interests in           
     mining tenements
     relinquished,
     reduced or lapsed      None

6.2  Interests in           
     mining tenements
     acquired or
     increased              None


Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.

                            Total     Number quoted   Issue price    Amount paid up
                           number                    per security      per security
                                                     (see note 3)      (see note 3)
                                                          (cents)          ( cents)
7.1   Preference       
      securities
      (description)          None

7.2   Changes during 
      quarter
      (a) Increases
      through issues
      (b) Decreases
      through
      returns of
      capital,
      buy-backs,
      redemptions            None

7.3   Ordinary    
      securities      174,444,787       174,444,787

7.4   Changes 
      during
      quarter
      (a) Increases
      through 
      issues        (a) 2,150,000
      (b) Decreases
      through
      returns of
      capital,
      buy-backs

7.5   Convertible   
      debt securities
      (description)          None
      
7.6   Changes during 
      quarter
      (a) Increases
      through issues
      (b) Decreases
      through
      securities
      matured,
      converted              None

7.7   Options                        Exercise price          Expiry date
      (description
      and            A. 6,000,000          25 cents           30-06-2007
      conversion     B.   200,000          25 cents           31-12-2008
      factor)        C.10,000,000          25 cents           30-06-2008  
                     
                     
7.8   Issued during  
      quarter                None

7.9   Exercised      
      during quarter    2,150,000

7.10  Expired during 
      quarter                None

7.11  Debentures     
      (totals only)          None

7.12  Unsecured notes      
      (totals only)          None










Compliance statement


1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.


Des Olling
Company Secretary



Notes


1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.


2 The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting
period. If the entity is involved in a joint venture agreement and there are
conditions precedent which will change its percentage interest in a mining
tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.


3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.


4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.


5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.




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