Global Petroleum full-year losses narrow

1st Nov 2024 10:28

(Sharecast News) - Global Petroleum reported a loss after tax of $1.04m in its final results on Friday, narrowing from $1.28m year-on-year.

The AIM-traded firm said cash reserves stood at $193,070 as of 30 June, compared to $356,389 a year earlier, with the company raising £503,000 through fundraising in August and December 2023.

Operationally, Global Petroleum said it was focussed on exploration and the farm-out process for its Namibian licence PEL0094.

In August last year, the Namibian government granted the company approval to proceed to the licence's first renewal period, waiving the typical requirement to relinquish 50% of the licence area, thus allowing Global to retain its 70% interest until September 2025.

In Italy, appeals against environmental decrees supporting the company's applications were dismissed, with Global submitting further documentation as it awaited further discussions with the Italian Ministry of Ecological Transition.

Since the financial year's close, Global Petroleum said it had diversified into mineral resources, acquiring a 70% stake in a joint venture with mineral geologist Callum Baxter for exploration in Western Australia, increasing to 80% by September.

The company also raised £0.85m in an oversubscribed funding round, and had entered early commercial discussions with a potential partner for the Namibian licence.

Leadership changes included the appointments of Omar Ahmad as CEO and Hamza Choudhry as chief financial officer, with Ahmad extending a short-term loan of $270,000 to the company.

Global said its strategy now prioritised expansion into high-growth mineral resources, particularly gold, alongside its traditional focus on oil and gas.

The company said it was aiming to enhance shareholder value by exploring strategic opportunities in Australia, Africa, and the Mediterranean, diversifying its portfolio to capture growth in the mineral sector and position for long-term value creation.

"I am filled with optimism about the transformative journey Global Petroleum is undertaking," said chief executive officer Omar Ahmad.

"The advancements in the Namibian offshore sector in the Walvis Basin and particularly the significant developments surrounding Licence PEL 0094 with our progressing talks with a commercial farm-in partner, position us as significant early movers in the Basin."

Ahmad said that was coupled with the firm's strategic diversification into mineral resources in Western Australia, where it was enhancing its asset portfolio and working with its joint venture partner Callum Baxter in project Juno, where the work programme was well underway.

"This is an exhilarating time for Global, and we remain focused on delivering value to our shareholders as we navigate this exciting period of growth and look forward to sharing further updates on both our projects in due course."

At 1430 GMT, shares in Global Petroleum were up 11.2% at 0.2p.

Reporting by Josh White for Sharecast.com.