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FYI....


EXECUTIVE SUMMARY

1. Central Petroleum Limited, in their own right, have acquired EP 93 in the Northern Territory and also they have the sole rights to EPA's (Applications ) 130 and 131 in the Northern Territory and PELA (Application) 77 in South Australia.

2. The above mentioned tenements cover most of the potentially prospective, but under explored, Pedirka Basin of central Australia, as well as the overlying and underlying sedimentary sequences.

3. Studies by the company and the relevant state Departments of Minerals and Energy have highlighted the conventional hydrocarbon prospectivity of these tenements.

4. Work by the company, which has been confirmed by this report, has identified substantial prospectivity for the presence of, and the potential to, develop non-conventional hydrocarbons in the company's four tenements.

5. Central's Pedirka Basin acreage is known to contain extensive Permian and Triassic coal measures and carbonaceous shales, correlatives of which are known to have sourced the gas accumulations in the Cooper Basin and the oil accumulations of the overlying Eromanga Basin, adjacent and overlying basins respectively. These coals have considerable potential for coal bed methane drainage. These source beds, which contain Type 2 or oil prone macerals, could also have sourced conventional hydrocarbon accumulations.

6. The acreage also contains section within the underlying Amadeus Basin Sequence for "basin centred gas accumulations" in the tight and dirty Horn Valley Siltstone.

7. Given the knowledge of the central Australian petroleum systems the overlying Mesozoic aged Eromanga Basin has potential for oil accumulations as a consequence of late generated gas displacing oil up- dip.

8. Central have plans for the establishment of one or more large scale gas to liquids (GTL ) synthesis plants, probably located in Alice Springs for strategic reasons, given the proving up of appropriate reserves. Future potential for coal to liquids processing also exists.

9. Such plants would use the latest variant of the Fischer-Tropsch reaction to produce liquids, which could include ultra-clean dieseline, jet fuel and naphtha.
Given the company's extensive acreage in the Pedirka Basin, and in central Australia in general, should the company's plans come to fruition,

then they should become the dominant player in a large scale gas and or coal to liquids industrial process in central Australia.

11. It is known that markets, both locally and internationally, exist for clean liquid petroleum products, which could include ultra-clean diesel, jet fuel and naphtha. These markets are substantial and are under-supplied. Other by products of the hydrogenation process also have a ready market in the chemical industry.

12. Markets for the disposal of sales gas may also exist in southern and eastern Australia if gas sales prices rise to sufficient levels.

13. It is considered appropriate that conventional and non- conventional exploration be conducted simultaneously, as far is as possible, in the initial stages of exploration in the permit areas. This should be a natural occurrence.

15. Besides an exploration program, additional analytical studies will be required to accurately estimate the likely potential resources present in the company's acreage.

16. It is estimated that an Original Gas in Place (OGIP) Prospective Resource of approximately 67.4 TCF of coal bed methane could be present in Central's Pedirka Basin acreage.

Of this some 44.6 TCF is believed to be hosted in the Permian aged Purni Formation of the Pedirka Basin sequence and some 22.8 TCF is thought to be present in the Triassic aged Peera Peera Formation of the overlying Simpson Desert Basin sequence.

17. It is thought that the total estimated recoverable prospective hydrocarbon resource in the "low", "best" and "high" deterministic cases are 25, 34 and 51 TCF, assuming recoveries of 35%, 50% and 75%, respectively.

18. Indeterminate potential also exists in the Poolowanna Formation of the Eromanga Basin sequence, probably not as widespread.

19. This report does not include the recent addition of Traditional Oil'sEPA 105, 106 and 107 permit applications which straddle the Pedirka/Amadeus Basin boundaries but are thought to include some 8,000 km2 of Permian and possible Triassic coal horizons.