Global takes AIM at UK listing

ASX-LISTED Global Petroleum Limited said this morning it would apply for the admission to the London Stock Exchange's Alternative Investment Market (AIM).

There is no capital raising in connection with the admission, and under the ‘fast-track’ scheme Global expects to be admitted to AIM in early March.

“Global will be joining a burgeoning community of Natural Resources stocks on AIM,” said chairman John Armstrong.

Global's key assets are in offshore Kenya. It also has significant holdings in two AIM-traded companies focused on oil & gas and mineral exploration in the Falkland Islands. In addition, Global has Queensland, Irish and Maltese assets, Armstrong said.

“Since these assets are well distributed around the world, our presence in two equity markets will provide greater opportunity to source capital as key value projects move forward," he said.

The company said it was developing a portfolio of high upside exploration projects and joint ventures with proven successful explorers and operators such as Woodside Petroleum and Hardman Resources.

Global has a 20% stake in three blocks of offshore Kenya, known as L-5, L-7 and L-11. Global’s costs are carried through two wells yet to be drilled.

Last year the operator, Woodside Petroleum, raised its equity share in blocks L-5 and L-7 from 40% to 50% after a 2D seismic survey revealed several leads for potential drilling sites.

The records of a new survey, which has recently investigated nine of these leads, are currently being interpreted, with results expected in the second quarter of the year. Depending on these results, the first well could be spudded in before the end of the year.

Woodside has until late 2005 to determine whether or not to continue with its interest in block L-11.

A fourth block, L-10 is held by Dana Petroleum, the operator with an 80% stake, and Global with 20%, following the withdrawal of Woodside in 2004. The terms of an extension of the licence are being negotiated with the Kenyan authorities.

At midday AEDT 4 February Global had a market capitalisation of A$87.6m and its shares were trading at 52 cents.

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