Central Petroleum Limited (ASX:CTP) (Central) is pleased to announce that its wholly owned subsidiary, Merlin Energy Pty Ltd (Merlin), has entered into an agreement with Rawson Resources Limited to farmin into the oil prospective Pellinor prospect block (Pellinor Block) within EP 97 situated in the Pedirka Basin. The terms of the farmin agreement allow Merlin to complete and fund at the 100% level, 100km of 2D seismic and drill one well within the Pellinor Block to retain an 80% participating interest. c.38 km of seismic acquired by Merlin within EP 97 but outside of the Simpson, Bejah and Dune Prospect Blocks will be credited towards satisfying the Pellinor 100km 2D seismic obligation.
Central will be the operator of the farmin operations and the same Joint Operating Agreement used for the Simpson, Bejah and Dune prospect blocks will be used. The area accessible by Central with undoubted prospectivity for oil in the Pedirka Basin has been significantly enhanced by the Pellinor Farmin Agreement said John Heugh, Centrals Managing Director today. The additional 1,400 km2 of ground hosts a major monoclinal and/or faulted play type on the fringes of the deeper part of the main oil kitchen area, the Madigan Trough. The play also has widespread stratigraphic trapping potential in the known petroleum systems in the Pedirka Basin and the overlying Eromanga Basin sediments The farmin is subject to, inter alia, the Northern Territory Department of Resources renewing EP 97, which is due to expire on 14 February 2011, for a further 5 years.
CTP Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
