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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 Trident Energy agree on new terms

Friday, August 27, 2010

Central Petroleum (ASX:CTP) and Trident Energy Limited have agreed on a process to accomodate Trident's joint venture interest in EP 115 and EPA 111.

A wholly owned subsidiary of Central Petroleum, Frontier Oil & Gas Pty Ltd is currently drilling the Johnstone West 1 well within EP 115 and has made a cash cash for the joint venture participants to fund the drilling works. As part of this process, Trident has been cash called to $1.5 million.

Trident has indicated that it does not currently have the funds to fund its share of drilling cost within EP 115 due to timing issues.

Central Petroleum has entered into a new agreement with Trident by which Frontier will sole risk the drilling works of the JW1 well, providing Trident with the time to raise funds to earn into JW1 within a 60 day period commencing from the commencement of rigging down on completion of JW1.

Under this agreement, Trident will have the advantage of a “free look” into the results of JW1. If the well is a discovery, Trident will have this 60 day period to raise capital and satisfy the cash calls.

To participate in any potential production from the well, Trident must first pay 100% of the contributions which it would have been obliged to pay in order to drill JW1, currently the $1.5 million within the 60 day period.

In addition, Trident agrees to forego in favour of Frontier its rights to the proceeds from the sale of any petroleum recovered from JW1 until it pays an amount equal to 900% of the $1.5 contributions that have been foregone by Trident and recovered by Frontier.

If the drill results are not favourable Trident may leave EP 115 without recourse. It is highly likely that Trident will not proceed to earn into JW1 should JW1 not result in a discovery.

Finally, in exchange for Frontier sole risking JW1, Trident has agreed to terminate its Participating Interest in EPA 111.

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