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Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	CTP
Latest Price:	0.06 (-6.67% )
52-week High:	0.08
52-week Low:	0.04
Market Cap:	60.11M

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Central Petroleum Full Central Petroleum profile here

Central Petroleum (ASX: CTP) holds an extensive package of prospective acreage of over 270,000 km2 in central Australia, which is predominately in the Pedirka Basin, along with 25,000 km2 in the Southern Georgina Basin.

Apart from conventional gas potential, the company has had independent estimates of over 10,000 trillion cubic feet in UCG "syngas" prospective recoverable resources.

Central Petroleum and Petroleum Exploration Australia settle dispute

Monday, June 28, 2010

Central Petroleum (ASX: CTP) and Petroleum Exploration Australia Pty Ltd have settled a dispute over the validity of outstanding cashcalls. As part of the settlement, PXA will pay $4.25 million to Central and to withdraw from the Joint Ventures. PXA will return all of PXA’s participating interests in the Joint Ventures.

The settlement represents PXA’s contribution towards agreed Phase I activities, including 5 CSG wells and 1,350km of seismic. The settlement also ends arbitration between Central and PXA over the validity of the Red Sky Energy Farm in.

Central's aim is to develop and monetise the potential of its JORC “Exploration Target” category coal measures in the Pedirka Basin and intends to examine the potential for underground coal gasification (UCG), coal to liquids (CTL) and also coal mining and beneficiation.

Previous independent reports had estimated the total tonnage of coal in the Pedirka Basin above 1,000m as being 635 billion tonnes (“low”estimate) to 865 billion tonnes (“high” estimate) within Central’s wholly owned subsidiary, Merlin Coal Pty Ltd’s mineral leases and 1,110 billion tonnes (“low” estimate) to 1,385 billion tonnes (“high” estimate) above 1,000m in the same category in Central’s petroleum leases in the same area in the JORC “Exploration Target” category. (Mulready and Maynard June 2009).

Currently, Central is drilling the Ooraminna 2 well. A shallow gas show peaking at 300 units over a background of 50 units was recently encountered at 371m RT while drilling the upper 12.25” hole section at Ooraminna 2. The gas show was recorded in interbedded sandstones and limestones of the Julie Formation. A small gas flare burned on connections for some time after the initial flow.

A 5m flame of gas burned at the end of the flare line for approximately 10 minutes after the circulation had been shut down for a short period of 30 minutes and then restarted after the well had reached a depth of 486m.

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