Proactiveinvestors Australia

Central Petroleum raises A$9.9m to appraise Surprise-1 discovery, plans oil sales

Mon, 06 Feb 2012 10:38:00 +1100

Strong support from investors will allow Central to appraise the key Surprise-1 well, allowing it to prove up its resources and ability to provide cash-flow for the company.

Central Petroleum granted voluntary suspension, capital raising announcement pending

Fri, 03 Feb 2012 08:50:00 +1100

Central Petroleum (ASX: CTP) has been granted a change in status by the ASX to voluntary suspension pending the release of a proposed capital raising announcement.

Central Petroleum has not yet indicated where the potential capital injection will be allocated, but the company is in a very interesting position and earlier in the week announced some positive news for Surprise 1.

An engineering report by RPS Energy indicates that the Surprise-1 Re-entry H well, in the Amadeus Basin, could access stock tank oil initially in place (STOIIP) of between 0.5 and 2 million barrels in an area proximal to the well.

The voluntary suspension has been requested to last until the earlier of an announcement being made to the market, or the opening of trade on Monday 6 February.

Central Petroleum in pre open pending capital raising announcement

Wed, 01 Feb 2012 10:00:00 +1100

Central Petroleum (ASX: CTP) has been granted a trading halt by the ASX pending the release of a proposed capital raising announcement, with the company's shares placed in pre-open.

Central Petroleum has not yet indicated where the potential capital injection will be allocated, but the company is in a very interesting position and earlier in the week announced some positive news for Surprise 1.

An engineering report by RPS Energy indicates that the Surprise-1 Re-entry H well, in the Amadeus Basin, could access stock tank oil initially in place (STOIIP) of between 0.5 and 2 million barrels in an area proximal to the well.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Friday 3 February.

Central Petroleum continues success at Surprise 1 with positive initial engineering results

Mon, 30 Jan 2012 10:40:00 +1100

Central Petroleum (ASX: CTP) has received positive initial results from an engineering report by RPS Energy that indicate the Surprise-1 Re-entry H well, in the Amadeus Basin, could access stock tank oil initially in place (STOIIP) of between 0.5 and 2 million barrels in an area proximal to the well.

Further defining the well’s potential is that no apparent boundaries were identified during the analysis of the pressure transient data.

However, no further conclusions regarding the possible range of STOIIP volumes in the entire Surprise structure of 8 square kilometres can be made until all available seismic, geological and geophysical data has been integrated and analysed.

RPS based their calculations on a 105 metre section of the horizontal well bore placed in the lower half of an 8 metre thick sandstone reservoir section with an average permeability of 50 milliDarcies and a vertical to horizontal permeability ratio of 10%.

From the estimated reservoir pressure and the quasi-stable flowing BHP/rate, a productivity index of 0.65 barrels of oil per day/psi can be calculated.

Even though this is a transient productivity index and will decrease until reaching pseudo-steady state, the Inflow Performance Relationship curve suggests significant production increase potential upon greater draw-downs via artificial lift and possibly pressure maintenance in the medium to long term.

Sweet Success

Central achieved significant oil flows to surface during initial flow testing at the Surprise-1 Re-entry H well, the first significant onshore oil flow in the Northern Territory in nearly 50 years.

Initial flow testing of the Surprise-1 Re-entry H well produced a final stable flow rate of about 400 barrels of oil per day of sweet light crude with an API Gravity averaging 400.

As a result of the ongoing success of the well, a broker has reaffirmed its strong buy recommendation for Central and assigned a 12 month target price of $0.32 per share, well above the company’s last traded share price of $0.061 – which notably was up 1.67% higher on today’s news.

Strong oil flows from the Surprise-1 Re-entry H well significantly lowers the risk associated with the company’s initial projects.

Next Steps

Central is planning an extended production test of the well and a sales contract for any oil produced, with work expected to begin in April.

The company is also considering a second horizontal well prior to a 3D seismic survey of the Surprise structure and associated prospects and leads.

This is subject to further analysis of all data available which may result in a decision to postpone further drilling until a 3D survey can be conducted and the results of the extended production test of Surprise-1 Re-entry H are available.

Central Petroleum: broker reaffirms strong buy with A$0.32 price target

Fri, 20 Jan 2012 11:12:00 +1100

An updated broker report on Central Petroleum continues to maintain its strong buy as a result of good oil flows from its Surprise-1 Re-entry H well, which significantly lowers the risk associated with the company’s initial projects.

Central Petroleum finishes initial flow test at Surprise

Fri, 13 Jan 2012 14:15:00 +1100

Central Petroleum (ASX: CTP) has finished initial flow testing of the Surprise-1 Re-entry H well and is working towards starting an extended production test, anticipated within two to three months.

The initial flow testing at Surprise-1 recorded a sustained flow rate of 380 barrels per day with a low 4.4% drilling fluid and/or water cut.

The final pressure build up was 523 pounds per square inch.

Central plans to seek agreement on a sales contract, along with the necessary permitting, approvals and logistics for oil production during the extended production test.

This test is expected last several months.

The relevant geological, petrophysical and flow testing data gathered from the initial drilling program along with seismic data will be analysed to better define the reservoir potential and design the extended petroleum test.

Central is also considering options for a second well at the Surprise prospect, prior to running a 3D seismic program and using the existing drilling rig.

Central Petroleum’s Surprise-1 well increases oil flow rate

Thu, 12 Jan 2012 09:57:00 +1100

Central Petroleum (ASX: CTP) has increased the sustained flow rate of the Surprise-1 Re-entry H well by 20% in further flow testing.

In the most recent flow test, the well flowed at 380 barrels per day, up from the 300 barrels per day announced yesterday.

This had a low 4.4% drilling fluid and/or water cut, down from 8% yesterday.

Flow testing at Surprise-1 has returned the first significant onshore oil flow in the Northern Territory in nearly 50 years.

It is also central Australia’s first ever horizontal well completion to produce oil.

The well has been temporarily shut in for pressure build analysis. So far the well has reached more than 520 pounds per square inch (PSI) and is increasing at 1.5PSI per hour.

Oil flowed to date will be analysed and an interim reservoir analysis conducted to determine the best flow regime to extend the current well test program.

Importantly, the oil flowed from Surprise-1 is a light sweet crude with an API Gravity averaging 40 degrees and no evidence of hydrogen sulphide.

Central Petroleum tastes sweet success at Surprise oil well

Wed, 11 Jan 2012 10:14:00 +1100

Central Petroleum’s success at the Surprise-1 well is significant in more ways than one, achieving the first significant oil flow from an onshore discovery well in the Northern Territory for almost five decades, and the first ever horizontal well completion producing oil in central Australia.

Central Petroleum in pre open pending release of preliminary results from Surprise 1 testing

Mon, 09 Jan 2012 10:00:00 +1100

Central Petroleum (ASX: CTP) has been granted a trading halt today pending the release of an announcement regarding preliminary results obtained from tests of the Surprise-1 re-entry H well, with the company's shares placed in pre-open.

The company was to flow test the well late last week to gain an understanding of the potential flow rate and prospectivity of the well.

Over 230 metres of horizontal drilling at Surprise met with continuous oil and gas shows in sandstone has been completed.

A gross vertical thickness of continuous oil shows of approximately 28 metres was encountered.

Central will remain in a trading halt until an announcement is made to the market or no later than the start of trading on Wednesday, January 11.

Central Petroleum to flow test Surprise-1 well this week

Tue, 03 Jan 2012 08:28:00 +1100

Central Petroleum (ASX:CTP) will flow test the Surprise-1 re-entry well late this week to gain an understanding of the potential flow rate and prospectivity of the well.

Over 230 metres of horizontal drilling of Surprise met with continuous oil and gas shows in sandstone completed.

Gross vertical thickness of continuous oil shows of approximately 28 metres were encountered.

A Measured Depth of around 2,854 metres with a True Vertical Depth of approximately 2,534m has been reached in the target reservoir.

Tight hole conditions have developed in the angle build section of the wellbore and consequently further drilling has been discontinued to safeguard the well integrity.

It is planned to run a sleeve of 2.875” production tubing through this section to counter sloughing claystones and siltstones of the Middle Stairway Sandstone Member before testing commences. This will prevent any problems during testing and possible subsequent production.

Throughout the horizontal drilling, while dip changes were encountered the drill bit remained in sandstone with continuous oil shows and during only approximately 10 metres of horizontal drilling were oil shows rated "at less than good to excellent."

100% dull to bright yellow fluorescence and instant blue/white cut fluorescence were commonly recorded.

A drill break was evident at 2,676m Measure Depth. On circulation to the surface, black oil was evident on the shale shakers and a gas peak of 1,167 units was recorded.

Similar “heavy gas” dominated recordings were evident throughout drilling and circulation averaging in excess of 30-50 units with occasional much higher peaks.

Most of the time during drilling and circulation, free oil droplets were observed in the drilling fluid; on occasion covering approximately 60% of the surface of samples taken.

Central Petroleum encounters continuous oil shows in Surprise-1

Wed, 28 Dec 2011 15:37:00 +1100

Central Petroleum (ASX:CTP) finished the year on a high encountering continuous oil shows in sandstone while drilling the Surprise-1 Re-entry H well.

The company reported on several trips oil has collected in the possum belly and over the shakers and continuous “breakouts” of oil droplets are apparent in the lightweight brine mud system.

Visual observation of oil in the drilling fluid in the possum belly and over the shakers indicates that the quantity is increasing on circulation to the surface following connections.

Central said that as the oil is floating on the surface of the drilling fluid and dispersed in droplets throughout, no quantification of oil volumes can be given

At last report Surprise was drilling ahead horizontally at approximately 10 metres/hour at a Measured Depth of 2,630m and a True Vertical Depth (TVD) of 2,543 metres.

Approximately 75 metres of horizontal well bore has been drilled.

On the most recent trip back in to the well to a TVD of 2,542 metres, trip gas with a peak reading of 1,000 units was also recorded. Connection gas was reported to have increased to 200 units over a background of approximately 80 units with a similar composition to the trip gas.

Central Petroleum extends SPP to allow for Surprise 1 horizontal drilling results

Fri, 16 Dec 2011 11:30:00 +1100

Central Petroleum (ASX: CTP) has announced a final extension to the company’s share purchase plan (SPP) to January 25, 2012, due to the continuation of horizontal drilling and testing operations at the Surprise 1 ST-1 well.

The company announced the underwritten SPP, which aims to raise $5.5 million, on September 15, 2011.

Funds raised through the plan will be used to progress Central’s liquids focussed drilling program and to provide working capital.

The previous closing date for the share purchase plan was December 16, which comes during the planned horizontal drilling, flow testing and evaluation phase of Surprise 1 ST-1.

The company re-entered the well on Saturday November 18, looking for oil potential in both conventional and unconventional horizons.

Past estimates, confirmed by independent consultant RPS Energy, indicate that one 9 metre zone in the already drilled section of Surprise-1 could flow at 500-1,000 barrels per day.

By extending the closing date for the deal, Central hopes to give shareholders the opportunity to fully consider the final drilling and testing results from the well.

Eligible shareholders can purchase shares to a value of $2,500, $5,000, $7,500, $10,000 or $15,000, at an 18% discount to the average closing price of shares in the five days prior to the announcement of the share purchase plan on September 15 2011.

Importantly, Patersons Securities has advised that the Underwriting Agreement for the first $5.5 million of the plan could be extended to the revised closing date, pursuant to terms of the agreement, including market conditions.

The SPP followed a successful capital raising that saw sophisticated and institutional investors take up 91 million shares at $0.055 per share, for a total $5 million.

Funds from the capital raising were intended to support a planned Toronto Stock Exchange Listing, which would align Central with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.

New unconventional acreage and future plans

Central recently uncovered up to 260,000 square kilometres of additional unconventional targets in the Amadeus, Eromanga, Wiso and Pedirka Basins in central Australia, through a review of historical and recent data.

This could increase the company’s total area of unconventional play potential to more than 307,000 square kilometres.

At the Surprise 1 well, Central is planning to conduct a horizontal wellbore test of the Lower Stairway Sandstone, following positive results from the interpretation of electric logs, cuttings sampling, gas chromatography and coring.

The company has Prospective Reserves in the Amadeus Basin of 5.9 billion barrels of oil equivalent from conventional and unconventional sources, with total Prospective Resources across all basins of 14 billion barrels oil equivalent.

At the end of the September quarter 2011, Central had cash reserves of $13.26 million.

Central Petroleum: drilling of a 700m horizontal wellbore the next step at Surprise 1

Mon, 12 Dec 2011 10:50:00 +1100

Central Petroleum (ASX:CTP) is now planning to conduct a horizontal wellbore test of the Lower Stairway Sandstone in its Surprise-1 well in the Amadeus Basin following the recent positive results from the interpretation of electric logs, cuttings sampling, gas chromatography and coring.

Results indicate a possible gross oil column in the Lower Stairway Sandstone of up to about 17 metres, with permeabilities ranging up to 420 Millidarcys measured in a 9 metre cored zone.

Managing director John Heugh commented, “Movable oil has yet to be proved but the company is optimistic and believes that a horizontal wellbore offers the best possible chance for oil flow to surface by accessing a much longer sandstone section than is possible via a vertical wellbore.”

Smaller hydrocarbon zones up to 1 metre in the Middle Stairway Sandstone and up to 2 metres in the Top Pacoota Sandstone have also been interpreted.

The presence of hydrocarbons and elevated organic material in sections of the Horn Valley Siltstone has also been interpreted and samples taken will be studied for unconventional shale oil/gas potential.

Only the hydrocarbon zones in the Lower Stairway and the Middle Stairway are thought to have flow potential using conventional production techniques.

The Surprise ST-1 well has reached a total depth of 2,732 metres within the Pacoota Sandstone in an 8.5 inch hole size.

Forward Plans

Central will complete a seismic check shot survey over the section from surface to total depth before running 7 inch casing.

The next step will be to mill a window in the casing above the Middle Stairway Sandstone before directionally drilling a 6 inch sidetrack to intersect and drill a horizontal wellbore of up to about 700 metres through the interpreted Lower Stairway oil column.

The horizontal drilling and testing program is expected to begin late this week.

Share Purchase Plan

As a result of the timing of the Surprise-1 operations, Central is considering a further extension of its share purchase plan to eligible shareholders to raise A$5.5 million.

The share purchase plan is currently due to close on 16 December 2011.

Eligible shareholders can purchase shares to a value of $2,500, $5,000, $7,500, $10,000 or $15,000, at an 18% discount to the average closing price of shares in the five days prior to the announcement of the share purchase plan on 15 September 2011.

Central Petroleum soon to receive preliminary results from pressure testing of Surprise 1

Fri, 09 Dec 2011 10:30:00 +1100

Central Petroleum (ASX: CTP) is expecting preliminary results from a testing program to determine the fluid content and hydrocarbon saturation of its Surprise-1 well in the Amadeus Basin in the coming week.

The company has completed the running of electric logs at the well and is in the process of measuring formation pressures and sampling reservoir fluids through the use of a Modular Formation Dynamics Tester (MDT) tool.

In addition to establishing the fluid content and hydrocarbon saturation of the reservoir, the process will, to an extent, also test the permeability and producibility of the reservoir.

Seismic check shots and rotary sidewall cores are also planned to add to the database being used to assess the hydrocarbon content of the Surprise prospect.

Minor delays are being experienced as a result of an operational issue which has arisen while running the MDT tool.

Central began running extensive logging suites last weekend followed by the running of 7 inch casing at Surprise-1 after the well reached a total depth of 2,732 metres within the Pacoota Sandstone.

The company has continued to witness fair to good oil shows from the well since re-entry last month. Just before hitting the current total depth, the well intersected 20 metres of continuous oil flows within the Lower Stairway Sandstone to the Middle Stairway Sandstone intervals.

A possible defining factor of the well’s potential is that RPS Energy estimated that one 9 metre zone alone in the already drilled section of Surprise-1 has the ability to flow at between 500 to 1,000 barrels per day.

Depending on the outcome of the log and pressure data analyses, plans are to drill laterally into the best oil zones with a horizontal section or sections approaching about 500 metres or more in length.

The gas, with the high proportion of C2, C3, iC4/nC4 and iC5/nC5, supports the existence of an oil dominated hydrocarbon accumulation.

Central Petroleum to begin testing of Surprise 1 in Armadeus Basin

Fri, 02 Dec 2011 11:00:00 +1100

Central Petroleum (ASX:CTP) will begin running extensive logging suites this weekend followed by the running of 7 inch casing at its Surprise-1 well in the Amadeus Basin after the well reached a total depth of 2,732 metres within the Pacoota Sandstone.

The company has continued to witness fair to good oil shows from the well since re-entry last month. Just before hitting the current total depth, the well intersected 20 metres of continuous oil flows within the Lower Stairway Sandstone to the Middle Stairway Sandstone intervals.

Central is planning to run electric logs in addition to the use of a modular formation dynamics tester (MDT) tool which measures formation pressures and samples reservoir fluids.

The data should help to establish the fluid content and hydrocarbon saturation of the reservoir, and to an extent permeability and producibility.

Depending on the outcome of the log and pressure data analyses, plans are to drill laterally into the best oil zones with a horizontal section or sections approaching about 500 metres or more in length.

The gas, with the high proportion of C2, C3, iC4/nC4 and iC5/nC5, supports the existence of an oil dominated hydrocarbon accumulation.

Meanwhile, preparations are also underway for drilling to a planned total depth of 3,450 metres.

Acreage Growth

Yesterday Central announced it had uncovered up to 260,000 square kilometres of additional unconventional play targets in the Amadeus, Eromanga, Wiso and Pedirka Basins in central Australia, through a review of historical and recent data.

This new acreage could increase the company’s total area of unconventional play potential to over 307,000 square kilometres.

Many of these horizons have been logged, sampled and analysed but not specifically for the purposes of unconventional exploration.

The potential for Central lies in the development of not just one play in one horizon, but underneath the known horizons such as the lower Larapinta Group in the Amadeus Basin and the Arthur Creek Formation in the Southern Georgina Basin, both well-known and independently assessed plays.

The company plans to drill the Mt Kitty well next year, which will test the unconventional potential of one or two of the additional play types.

Central Petroleum expands unconventional acreage with new targets in central Australia

Thu, 01 Dec 2011 12:07:00 +1100

Managing director John Heugh told Proactive Investors today the potential size of the additional unconventional targets represents a substantial prospective addition to the company’s portfolio, which now covers the Southern Georgina, Amadeus, Eromanga, Wiso and Pedirka Basins.

Central Petroleum encounters 20m of continuous oil flows in Surprise-1 well

Tue, 29 Nov 2011 12:41:00 +1100

Central Petroleum (ASX:CTP) has reported 20 metres of continuous oil flows from the Surprise-1 well.

At 0600 this morning CST time, the well, located in the Amadeus Basin, had reached a depth of 2,672 metres RKB in the Pacoota Sandstone.

Managing director John Heugh said today, "Given the reported properties of the core taken last year and the current well site observations, there is good reason to be cautiously optimistic (about Sunrise-1 well).

"But, until the well has been logged and the results evaluated, the outcome must necessarily remain speculative."

Fair to good oil shows accompanied by background gas up to a 75 unit peak with high “heavy” gas components were reported through the base of the Lower Stairway Sandstone which continued from the core previously cut in December 2010.

Including the results of the core cut previously, Central said, "it is apparent that at the base of the Lower Stairway Sandstone, the well has encountered approximately 20 metres of continuous fair to good oil shows.

"With cored zone having been confirmed independently to be capable of flow rates of between c.500-1,000 barrels per day subject to confirmation by electric logging of hydrocarbon saturation."

The lithologies in the additional 11 metres drilled of these oil shows has been described on the wellsite as being fine to coarse grained with fair visual porosity and abundant yellow-gold natural fluorescence and strong yellow solvent cut fluorescence.

This interval and other oil shows above will be logged, cored with rotary sidewall cores, and evaluated with a contingent plan to drilling a horizontal leg or legs over the best zone or zones.

The top of the Horn Valley Siltstone (HVS) was encountered at approximately 2,583 metres and gas peaks of up to 25 units with a similar composition to that of the Lower Stairway Sandstone were recorded.

The top of the Pacoota Sandstone was encountered at a measured depth of approximately 2,631 metres RKB with a gas peak of 30 units at 2,649 metres, again with a similar composition to the gas encountered higher in the well bore.

The gas, with the high proportion of C2, C3, iC4/nC4 and iC5/nC5 supports the existence of an oil dominated hydrocarbon assemblage.

This gas composition has continued consistently since gas associated by oil shows were described in December 2010 from the original well reports.

Central cautioned that the results "are preliminary and based on well site observations and thus are subject to review as more data comes to hand."

7” casing is planned to be run to the depth of 2,750m before contingently drilling ahead in 6” hole.

Central plans to to drill ahead in 6” hole after the 7” casing is run to test deeper possible Direct Hydrocarbon Indicators in the Pacoota and Goyder Formations as well as to test the top of a salt dome at a Total Depth of approximately 3,450 metres.

Following this, it is planned to flow test the well subject to confirmation of the initial visual results by electric logging and fluid/pressure sampling tools coupled with the existing core analyses.

Cash

The company had $13.3 million of cash at the end of the September quarter.

Central Petroleum encounters further oil shows at Surprise 1 in the Armadeus Basin

Mon, 28 Nov 2011 12:08:00 +1100

Further oil shows at Surprise-1 support Central’s decision to re-enter the well earlier this month. A possible defining factor of the well’s potential is that RPS Energy estimated that one 9 metre zone alone in the already drilled section of Surprise-1 has the ability to flow at between 500 to 1,000 barrels per day.

Central Petroleum announces new horizontal drilling plan for Surprise-1

Thu, 24 Nov 2011 08:50:00 +1100

Central Petroleum, (ASX:CTP) fresh from plans to re-enter the Surprise-1 Sidetrack-1 in the Amadeus Basin on Saturday 18 November, has announced horizontal drilling plans for Surprise-1.

The Surprise-1 re-entry is the first of this current liquids focussed drilling programme on Central’s acreage position including Madigan or Simpson East and Mt Kitty.

Previously, it had been planned to drill a sidetrack section in preparation for a possible vertical completion and production scenario.

Now Central intends to drill through the bottom cement plug at (top of approximately 2,300m) to an approximate depth of 2,770 metres in 8.5” hole before running a full suite of electric logs and rotary sidewall cores.

The new direction is due to new chief operating officer Dalton Hallgren and exploration manager Trevor Shortt's North American horizontal and unconventional drilling and completion experience.

“This new well plan devised by Central’s capable technical team gives us the flexibility to apply advanced drilling and completion techniques that have been well understood and widely applied in North America for some time, especially in unconventional plays” said Mr John Heugh, Central’s managing director today.

New plan

Following evaluation of the section from the base of the Mereenie Sandstone to the mid Pacoota Sandstone, 7” casing is planned to be run to the depth of 2,750m before contingently drilling ahead in 6” hole to a Total Depth of approximately 3,450m to evaluate possible Direct Hydrocarbon Indicators (DHIs) in the lower Pacoota Sandstone, the Goyder Formation and the upper section of an interpreted salt dome.

Although the already drilled lower Stairway Sandstone with very positive oil shows may have suffered formation damage from exposure to drilling mud for close to 12 months, the rest of the section will be fresh formation and electric logging will “see” well beyond any potentially damaged zones close to the well bore.

Production from a vertical well bore may be possible, however, if the results of evaluation show that the company could anticipate considerably enhanced production potential there are contingent plans to drill horizontal well bores or high angle slanted directional well bores through selected target zones.

Timeline

Central plans to complete the drilling of Surprise-1 by about mid December 2011, contingent on Total Depth (TD) drilled to and evaluation of ongoing results.

Under the terms of the contract, Hunt Rig 3 is expected to be stacked in Central’s warehouse and yard facilities at Alice Springs during any break in drilling occasioned by the wet season.

Hunt Rig 3 has been extensively refurbished with new or upgraded main motors, rotary table, mud tanks, Blow Out Preventer (BOP) and mud pumps.

Central Petroleum re-enters Surprise-1 well in the Amadeus Basin

Mon, 21 Nov 2011 08:44:00 +1100

Central Petroleum (ASX:CTP) re-entered the Surprise-1 Sidetrack-1 in the Amadeus Basin using Hunt Rig 3 at 1700 CST on Saturday 18 November for oil potential in both conventional and unconventional horizons.

Central closed the September quarter out with cash of $13.3 million.

The Surprise-1 re-entry is the first of this current liquids focussed drilling programme on Central’s acreage position including Madigan or Simpson East and Mt Kitty.

Central has previously reported estimates confirmed by independents RPS Energy, (subject to confirmation of visual hydrocarbon saturation by electric logging, pressure data and flow testing), that one 9m zone alone in the already drilled section of Surprise-1 has the ability to flow at between 500 to 1,000 barrels per day.

The plan is to re-enter Surprise-1 and sidetrack the lower part of the existing well bore to get fresh reservoir through existing oil shows for testing and evaluation. The existing shows were seen in a 9 metre core.

The well will then be drilled into the main target zone, the Parcoota Sandstone, which was not reached in Surprise-1 due to the premature termination of drilling operations as a result of the rig incident described elsewhere in this report.

Two additional oil shows in the Lower Stairway Sandstone above the 9 metre cored zone remain unevaluated other than in visual inspection of cuttings.

The company plans to complete the drilling of Surprise-1 by about mid December 2011, contingent on Total Depth (TD) drilled to and evaluation of ongoing results.

Rhe well has been renamed Surprise-1 Sidetrack-1 (S1-ST1) in recognition of the plan to sidetrack to one side of the lower part of the existing well bore to get fresh reservoir through existing oil shows for testing and evaluation.

Canadian listing

Central is progressing a listing on the TSX Venture Exchange (TSXV). The timing of the listing is expected to be in the first quarter of the 2012 calendar year, subject to market conditions.

The company has committed to the services of Canaccord Genuity Corporation and Cormark Securites Inc. to act as financial advisors for the proposed listing.

Central Petroleum to re-enter Surprise-1 tomorrow, appoints new chief operating officer

Tue, 15 Nov 2011 13:41:00 +1100

Central Petroleum (ASX: CTP) is set to re-enter Surprise-1 ST1 on Wednesday 16 November, with the re-entry the first of the current liquids focussed drilling program on Central’s acreage, which includes Madigan or Simpson East and Mt Kitty.

Drilling and testing of Surprise-1 ST1 will take around a month and is forecast to be completed by about mid December 2011.

In other Central news, the company has appointed Dalton Hallgren as chief operating officer, with Hallgren to replace Al Thorsen who had to return to Canada due to personal family issues.

Hallgren is a well qualified manager and drilling engineer, having worked extensively, inter alia, in the Marcellus, Bakken, Haynesville and Barnett shale gas and shale oil plays in the U.S.

Highlighting Hallgren's experience, he has managed the drilling of numerous horizontal multi-stage fracced wells in such plays for companies such as Halliburton Project Management, Burlington Resources, Headington Oil, St Mary, Peak, Encana, Hess, Marathon and Conoco.

Well funded

In September Central raised $5 million through the placement of 91 million shares at $0.55 each to fund the drilling program and provide working capital.

The company also has a share purchase plan underway to raise a further $5.5 million, fully underwritten by Patersons Securities. The share purchase plan is due to close on November 28.

Central has plans to list on the Toronto Stock Exchange, to align it with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.

Central Petroleum to re-enter Surprise-1 well in Amadeus Basin this weekend

Mon, 07 Nov 2011 09:46:00 +1100

Central Petroleum (ASX: CTP) set to commence re-entry of the Surprise-1 well in the Amadeus Basin, onshore central Australia, by this weekend.

The re-entry is the first of a liquids-focussed drilling program across the company’s acreage position, which will include the Madigan or Simpson East and Mt Kitty prospects.

Central plans to complete drilling and testing of Surprise-1 by mid-December 2011.

The company initially planned to start the drilling program earlier, however this was delayed by temporary road closures caused by localised rain.

Previously recorded estimates, confirmed by independent RPS Energy, subject to confirmation of visual hydrocarbon saturation, indicate that one 9 metre zone in the already drilled section of Surprise-1 has potential to flow at 500-1,000 barrels per day.

There are other potential direct hydrocarbon indicators throughout the main target zone, the Pacoota Sandstone, although this has not yet been drilled.

Capital raisings

In September, Central Petroleum raised $5 million through the placement of 91 million shares at $0.55 each to fund the drilling program and provide working capital.

The company also has a share purchase plan underway to raise a further $5.5 million, fully underwritten by Patersons Securities. The share purchase plan is due to close on November 28.

Central has plans to list on the Toronto Stock Exchange, to align it with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.

Central Petroleum extends closing date of A$5.5 million underwritten SPP

Tue, 18 Oct 2011 11:24:00 +1100

Central Petroleum (ASX: CTP) has extended the closing date of the A$5.5 million underwritten share purchase plan (SPP) announced on 15th September 2011, from 20 October 2011 to 28 November 2011.

The SPP will be underwritten by Patersons Securities Limited.

Central's planned re-entry and completion of drilling operations of the Surprise ST-1 well are scheduled shortly and the company considers the results of the drilling should follow the SPP completion date.

The company is getting ready to commence a liquids focussed drilling program of up to three wells in the largely under explored central Australia.

The wells include Surprise-1 re-entry, Madigan or Simpson East and Mt Kitty, with the company to use Hunt Energy and Mineral Co. Australia Pty Ltd for the drilling.

The drilling rig and associated equipment is planned to commence mobilising to the site within a week, and will be ready for the re-entry of Surprise-1 in the first week in November.

Central Petroleum readies for drilling highly prospective central Australian wells

Mon, 17 Oct 2011 11:59:00 +1100

Central Petroleum (ASX: CTP) is getting ready to commence a liquids focussed drilling program of up to three wells in the largely under explored central Australia.

The wells include Surprise-1 re-entry, Madigan or Simpson East and Mt Kitty, with the company to use Hunt Energy and Mineral Co. Australia Pty Ltd for the drilling.

The drilling rig and associated equipment is planned to commence mobilising to the site within a week, and will be ready for the re-entry of Surprise-1 in the first week in November.

The timeline plan for Central Petroleum is to complete the drilling and testing of Surprise-1 by about the first week of December.

Renewal of access roads and the airstrip have been completed, with the drilling pad, sump and most of the required casing and hardware on hand.

John Heugh, managing director of Central Petroleum commented, “The situation in Australia is very tight for drilling rigs and associated equipment and even tighter in central Australia and this has substantially hampered our plans to begin drilling again this year.

"Contrary to some market beliefs, the company has not been sitting on the fence waiting for groups such as Petrofrontier or Rodinia to announce drilling results in neighbouring ground.

"There is no reason for the company to have delayed drilling other than a profound shortage of appropriate drilling rigs.”

Highlighting the potential of the new drilling, it's worth reviewing previously reported independent estimates provided by RPS Energy.

Subject to confirmation of visual hydrocarbon saturation by electric logging, pressure data and flow testing, that one 9 metre zone alone in the already drilled section of Surprise-1 has the ability to flow at between c.500 to c.1,000 barrels per day.

Surprise-1 has not yet drilled into the main target zone, the Pacoota Sandstone and there are other potential Direct Hydrocarbon Indicators throughout the Pacoota Sandstone.

Two additional oil shows in the Lower Stairway Sandstone above the 9 metre cored zone remain unevaluated other than in visual inspection of cuttings.

Central Petroleum has ceased negotiations with Australian Drilling Services Pty Ltd for the provision of their Rig 6 and anticipates signing a formal contract with Hunt within a week.

Central Petroleum receives boost from WA Geological Survey on potential of Amadeus Basin ground

Tue, 11 Oct 2011 11:39:00 +1100

Central Petroleum (ASX:CTP) has reported that a new study led by the Geological Survey of Western Australia (GSWA) has highlighted the potential prospectivity of Central's three Western Australian Amadeus Basin permit applications EPAs 16/08-16,17 and 18.

Central said that conventional wisdom in the industry has held for decades that the area was not prospective but Central was sceptical of this view and made application in the area for over 35,000 km2 in Special Prospecting Authority (SPA 704.5) in 2008.

Central completed a large scale aeromagnetic/gravity survey in SPA 704.5 and has been progressing with the negotiations for the granting of three consequent PEPAs totalling 33,890 km2 since 2009.

Managing director of Central John Heugh said today, “Central’s original review of the potential of the far western Amadeus Basin concluded that Aralka and Pertatataka Formation source rocks would occur in the target area.

The fact that the Western Australian Geological Survey has proven their existence in the western Amadeus Basin is very encouraging for the prospectivity of the area and confirms the Company’s geological rationale behind the original applications.”

Central Petroleum updates market on Century Energy Services proceedings

Thu, 29 Sep 2011 10:58:00 +1000

Central Petroleum (ASX: CTP) has updated the market regarding the dispute status with Century Energy Services Pty Ltd.

Central said yesterday the Supreme Court of Western Australia published its decision on an application by Central for an injunction restraining Century Energy Services Pty Ltd from demanding or obtaining payment under a Banker's Undertaking.

Central had provided the Banker's Undertaking as security for payment for drilling services provided by Century between May and December 2010.

The contract pursuant to which the services were provided was terminated as a result of a breakdown of the rig on 5 December 2010.

Century had initially claimed that it was entitled to be paid an amount of $795,649.36 in addition to the amounts already paid for services provided up to the point of termination of the contract.

While the Court decided against granting an injunction, Century has through the process reduced its claim to between $312,282.66 and $358,832.66.

In respect to Century’s claim for payment, Central says that it has a claim arising from the breakdown and termination which is for a far greater sum.

It has made a claim against Century for costs incurred as a result of the breakdown and termination, and for the likely costs associated with the logistics and the re-entry and drilling of Surprise 1 to the depth reached at the time of termination of the contract with Century in December 2010.

Central has commenced arbitration proceedings in connection with this claim. Century has disputed Central's claim.

Central and Century are currently engaged in amicable discussions in an attempt to resolve these issues without the need for continuing arbitration proceedings.

If these discussions do not lead to an agreed resolution, these issues will be resolved by arbitration, which would likely occur in April 2012.

Central Petroleum moves closer to gaining Southern Georgina Basin exploration permits

Thu, 22 Sep 2011 11:55:00 +1000

Central Petroleum (ASX: CTP) has taken a step closer to unlocking potential resources in Central Australia by having exploration agreements that cover three Queensland permit applications signed off by Traditional Owners and Land Councils.

The ATPs 909, 911 and 912 cover a vast 3.5 million acres of prime unconventional and conventional acreage in the Southern Georgina Basin.

The agreements will now be submitted to the government of Queensland and the company expects that the permits will be granted within several months.

John Heugh, Central’s managing director, said “the industry focus on unconventional assets generally on a global basis and the intense local interest in Petrofrontier’s unconventional program in the Southern Georgina make this development towards the granting of our permits a real milestone.”

The authorities to prospect are located adjacent to PetroFrontier's (CVE: PFC) permits in the Northern Territory where an active unconventional exploration program is currently examining potential initially at the Baldwin 2 and MacIntyre 2 wells.

The Arthur Creek “hot shale” unit continues into Central’s application areas on the Queensland side of the border with the Northern Territory and the whole of the Lower Arthur Creek Formation is of great interest to Central.

Additional potential in Central’s acreage lies in conventional plays including incision and submarine channels as well as deeper turbidite plays.

Central plans conditionally to conduct seismic and to drill up to three horizontal multi-fracture stimulated wells into the play in 2012 and has its own evaluation underway.

Central Petroleum to raise additional A$5.5m via underwritten SPP

Wed, 21 Sep 2011 16:45:00 +1000

Central Petroleum (ASX: CTP) will raise an additional A$5.5 million through an an underwritten share purchase plan (SPP) to progress the company’s liquids focussed drilling program and to provide working capital.

The SPP, announced on 15 September 2011, will be underwritten by Patersons Securities Limited.

A range of institutional, sophisticated and professional investors subscribed to 91 million shares offered by Central at $0.055 per share, raising about $5 million.

John Heugh, Central's managing director, said "the fact that these highly experienced professional investors applied for the shares goes to show the confidence they have in Central's future prospects."

Central is now offering its own shareholders the right to participate in the SPP on the same terms as the stockbrokers. The record date to establish those shareholders entitled to participate in the SPP was 14 September 2011.

The opening date of the SPP is 26 September 2011 and the closing date is set for 20 October 2011.

Central raised $5 million through a placement of 91 million shares at $0.055 per share on September 16.

The funds were raised ahead of a planned Toronto Stock Exchange listing to align it with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.

The company plans to commence drilling of up to three wells at Surprise-1 in the Amadeus Basin in mid-September 2011.

The wells will test Surprise-1 for oil potential in both conventional and unconventional horizons, followed by the drilling of the 4 Billion barrel Madigan prospect (P50 UOIIP) in the Pedirka Basin and the 2 TCFG Mt Kitty prospect (P50 UGIIP).

Central Petroleum raises A$5m to commence exploration program

Fri, 16 Sep 2011 09:08:00 +1000

In the lead up to Central Petroleum's TSX listing the company has raised funds to progress drilling of up to three wells testing for oil potential at Surprise-1 in the Amadeus Basin in mid-September 2011.

Central Petroleum granted voluntary suspension pending capital raising announcement

Tue, 13 Sep 2011 07:47:00 +1000

Central Petroleum (ASX: CTP) has been granted a voluntary suspension by the ASX pending a material capital raising announcement, with the company's shares placed in pre-open.

Central Petroleum requested the voluntary suspension to last until the earlier of the announcement being released to the market, or the opening of trade on Thursday 15 September 2011.

About Central Petroleum

Central Petroleum is a junior exploration and production company with extensive granted and pending tenement acreage in Central Australia, totalling over 70 million acres, predominately in the Northern Territory, almost entirely 100% net owned.

Within this acreage large resources of oil, natural gas, helium and coal have been identified and/or inferred by independent geological assessment. These resources are located within four main geological structures; the Amadeus, Pedirka, South Georgina basins and the Lander Trough of the Wiso Basin.

Central Petroleum has identified a number of oil and gas prospects in the already-producing Amadeus Basin and in the Pedirka Basin which could be brought to market relatively quickly following further drilling to determine the full extent of the resources.