Perth, Dec 10, 2007 AEST (ABN Newswire) - Central Petroleum Limited ("Central")(ASX: CTP) and Hunt Energy and Mineral Company Co.- Australia Pty Ltd ("Hunt") have signed a binding Letter of Intent subject to contract and technical inspection to utlise Hunt Rig 2 on Central's 2008 drilling programme timed to commence following the end of the Northern Territory wet season. Under the agreement, Rig 2 will be available to spud from March 1st to April 30th 2008 for a minimum programme of 2 conventional wells.
However, Central may exercise an option to drill up to 5 more conventional wells and 3 coalbed methane wells if it secures shareholder approval at a General Meeting on 21 December 2007 for a proposed series of rolling convertible bonds, and concludes several farmout agreements currently the subject of Memorandums of Understanding which have been previously announced.
The wells proposed for such an expanded programme would include Blamore 1 (oil), Simpson 1 (oil), Mt Kitty 1 (gas, condensate and Helium), Ooraminna 1 (gas), Waterhouse 3 (gas), Johnstone 1 (oil) and Magee 1 (gas, condensate and Helium) and up to 3 coal bed methane exploration wells in the Pedirka Basin. The proposed programme is subject to additional pre drilling seismic in the case of Magee 1 and Johnstone 1 and in the case of Waterhouse and Magee, the results of drilling at Ooraminna and Mt Kitty. The proposed programme will target upside "high" estimate recoverable prospective resources in the conventional wells of approximately 300 million barrels of oil, 3.4 TCF of gas and 100 BCF of Helium. The proposed coal bed methane programme will be the initial wells in an exploration programme targeting in excess of 70 TCF methane at "high" estimate of recoverable prospective resources.
Hunt Rig 2 is currently drilling Ballaparudda 1 for Beach Petroleum in the Cooper Basin and in the last 18 months has drilled 25 wells; 19 for Beach Petroleum including the successful Keawarra, Parsons, Callawonga and Maracoola discovery wells, 4 for Bow Energy and 2 for Inland Oil.
Sign off and implementation by both parties on the Petroleum Exploration Limited farmout agreement awaits only the adoption of various royalty assumption deeds and a deed of covenant with the Central Land Council to be approved.
The rolling convertible bond proposal awaits approval of Shareholders on December 21st 2008.
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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