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ASX ANNOUNCEMENT ASX CODE: CTP
15 September 2010
TO: The Manager, Company Announcements ASX Limited
CONTACT: John Heugh +61 8 9474 1444
CENTRAL TO DRILL SECOND WILDCAT WELL IN EP 115
Central Petroleum Limited (ASX:CTP) (?Central?), as Operator, advises that it has exercised an option with MB Century drilling services for the planned drilling of Surprise-1 (S-1), a wildcat well approximately 8 km South-Southeast of Johnstone West-1 (JW-1). S-1 is planned to be drilled upon the completion of JW-1 to test similar objectives to JW-1 inclusive of the Stairway Sandstone and the Pacoota Sandstone.
?Whilst there is some uncertainty of which formation JW-1 is currently drilling in, there is sufficient encouragement at this well already to vindicate a decision to approve the drilling of Surprise-1, which is in a more favourable geological location closer to the oil kitchen and thus requiring less migration than JW-1? said John Heugh, Central?s Managing Director today.
Postulated migration from oil kitchen
The two wells, JW-1 and S-1 are located on different but parallel North-South lines approximately 5 km apart in the East-West direction. The projected image above illustrates a North-South line through the S-1 structure. Any oil migrated from the deeper parts of the oil kitchen to the greater Johnstone structure and JW-1 would necessarily have migrated through the S-1 structure. Although there is some uncertainty surrounding the size of the S-1 structure in the East-West direction, the results at JW-1 and the obviously favourable geological location make it an attractive target with an upside ?high? UOIIP of 50 MMbbls and a fully risked mean UOIIP of 6 MMbbls. It is planned that the MB Century Rig 7 will move to the S-1 location on completion of JW-1.
It is anticipated that if sidetrack operations are successful at JW-1, the rig will be making new hole past the previous oil shows from 1387m to 1475m previously recorded and announced sometime later today or early tomorrow. Further announcements will be made if any results of significance are recorded.
Central is Operator and holds a 90% interest in EP 115, through wholly-owned subsidiary Frontier Oil & Gas Pty Ltd and Trident Energy Limited conditionally holds a 10% interest in the permit. JW-1 is located at Latitude 23 deg 39 minutes and 21.86 seconds South, Longitude 129 degrees 56 minutes and 39.124 seconds East and S-1 is located at Longitude 23 degrees, 42 minutes 50.758seconds South and Latitude 129 degrees 59 minutes 36.091 seconds East




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