letter from new md out ! , page-2

9 July 2012
Dear Shareholders,
It is my privilege to write to you following my appointment as your Managing Director at the
EGM held on 22 June 2012 in Perth. I was humbled by your overwhelming support at that
meeting for my election and relish the challenge of creating shareholder value out of the
undoubted potential of our assets which are now starting to be realised.
Against a background of challenging financial markets and external ructions surrounding the
company over the past few months, there has continued to be significant activity taking place
operationally within Central Petroleum. Most importantly, we have achieved a significant
milestone at the Surprise-1 REH well oil field discovery and continue to progress the farm out
process of our acreage with a number of international E&P leaders. I am pleased to provide
you with this update on Central Petroleum Limited and the Company’s recent operational
activities and look forward to reflecting on the milestones we intend to achieve over the next
few months at the company’s November AGM.
Surprise EPT commenced – first oil to market
The Surprise Extended Production Test (EPT) was a significant milestone in Central Petroleum’s
history with oil flow commencing on 20 June 2012 following approval from the Northern
Territory Department of Resources (NTDOR) with first oil delivered to market in early July.
A Crude Oil Sale and Purchase Agreement was signed for the length of the EPT, which is three
months, and allows Central to commence receiving its first oil sale cash flows. Should a
Production Licence for the Surprise discovery area be granted by the NTDOR then the
Company intends executing a further purchase agreement to cover licence production.
Central’s plan for the EPT is to conduct a 1-month detailed test at a low flow rate (expect 100-
200 barrels per day) so that our technical team can obtain the reservoir data mentioned above.
Following the first month of testing, flow rates will be slowly increased to test reservoir limits
and provide cash flow to the Company.
EPTs are an important part of appraising new oil discoveries. They are important for the
evaluation of the productivity and various physical characteristics of a reservoir. Clearly
understanding the reservoir's optimal potential will help us reduce production and
development risks. In particular, EPTs are used to;
? Estimate reservoir volume and confirm reserves for field development;
? Confirm long-term reservoir deliverability;
? Pilot future facility designs during actual field development; and
? Obtain additional production-related data, such as water cut, sand production,
and well deliverability.
The Company believes undertaking an extensive EPT will assist in minimising risks related to
developing the field for long-term, sustained production. Based on successful testing and favourable reservoir results during the EPT, Central plans to design a Development Program end I will be holding shareholder briefings this week in the following cities and look forward to
meeting and discussing the Company’s future with you directly.
Sydney – 11am, Thursday 12th July 2012
MPS Investor briefing room
Level 3, 14 Martin Place, Sydney

Melbourne – 11am, Friday 13th July 2012
Patersons Securities Investor briefing room
Level 15, 333 Collins Street, Melbourne
Perth – 11am, Tuesday 17th July 2012
Ground floor presentation room - London House
216 St Georges Terrace, Perth
We face a busy time as we focus the whole effort of the Company on tapping the commercial
value of our projects. All shareholders should be assured of my personal commitment to the
rapid development of Central Petroleum’s assets to generate wealth for all shareholders.
Yours sincerely
Central Petroleum Limited