announcement just out, page-18

Hi All,

For those that have not read the report please find below sections from said report.

If you have not read the full report I highly recommend it.

JMHO this has the potential to be the start of something very big.

Please read the following article, this article was posted by NZ_Andy earlier day, which will give you an indication of the potential.

http://www.stuff.co.nz/4573484a1864.html/

Trapped gas - and more than just a bubble
SMH | Thursday, 05 June 2008

It has left even seasoned oilies scratching their heads. There is a land grab under way in Queensland right now, the likes of which hasn't been seen since the Victorian gold rush of the mid-1800s.

Chinese and American investors are scouring the state desperately trying to lock up territory with coal-seam methane gas.//

Cheers,
Brantley


15.1 Indicative undiscovered target size

//Prospective in place resources

• Pedirka Basin sequence = 44.6 TCF (coal bed methane)

• Simpson Desert Basin sequence = 22.8 TCF (coal bed methane)

• Total = 67.5 TCF

This figure is considerable and compares favourably with values accepted by Halliburton, a specialist service company, for some other significant methane producing basins.

That company estimates that the in place methane resource in the San Juan Basin of New Mexico, the most gas saturated basin in the USA, is between 68 and 84 TCF. They believe that the Appalachian Basin of the eastern USA holds an in place resource of 66 TCF and that the Northern Bowen Basin of eastern Australia has an in place methane resource of 136 TCF.//


Prospective recoverable resources

High Estimate (75% recovery)
Pedirka Basin sequence= 33.5 TCF
Simpson Desert Basin sequence =17.1 TCF =
TOTAL = 50.6 TCF

Best Estimate (50% recovery)
Pedirka Basin sequence=22.3 TCF
Simpson Basin sequence=11.4 TCF
TOTAL = 33.7 TCF

Low Estimate (35% recovery)
Pedirka Basin sequence=15.6TCF
Simpson Desert Basin sequence=8.0 TCF
TOTAL = 23.6 TCF


8.0 PETROLEUM GEOLOGY

To have a hydrocarbon accumulation the following conditions must be met:

• The presence of organically rich and un-oxidized source rocks, usually shales or coals

• The burial of these source rocks to depths whereby the organic material begins to expel hydrocarbons, oil first and then, with deeper burial, dry gas

• The presence of porous and permeable carrier and reservoir beds to allow the migration of generated hydrocarbons from the hydrocarbon generating kitchens near the basin depocentres to shallower sites of entrapment, which can be reached with the drill bit.

• The presence of sealing units overlying the carrier and reservoir beds which inhibit the upward migration of hydrocarbons, which results from the principle of floatation in which less dense materials float on those which are denser. Water is denser than oil, which in turn is denser than gas. These traps can be of either a structural or stratigraphic genesis.

• Natural gas, mainly methane, can also be trapped, by adsorption, against the faces of cleats within coals, forming unconventional accumulations

• In the case of dirty and tight source beds hydrocarbons can sometimes be trapped unconventionally in “basin centred
accumulations” in these source intervals

All of these conditions are known to be present in Central’s permits.


17.0 RECOMMENDATIONS

The prime recommendation of this report is that Central persist with their objective to explore for, develop and produce hydrocarbons of a nonconventional origin from their Pedirka Basin acreage. Their innovative ideas of gas, or coal, synthesis to synthetic crude oil are capable of unlocking a large scale, but un-utilized resource in the basin complex contained within their tenements. Liquid hydrocarbons command a premium over gas and are more
readily economically transportable and more readily saleable. Ready local and, probably, export markets exist for liquids in this time of oil shortage and high prices.

The company’s objectives are sound in that they are targeting Permian and Triassic coal rich intervals, correlatives of which are known to have sourced
both conventional and non-conventional hydrocarbon production in adjacent basins in eastern and central Australia. It is the author’s experience that wells
aimed at non-conventional targets perform better when sited on conventional trapping geometry, the laws of Physics and Chemistry still hold in unconventional accumulations. As a consequence it is further recommended that exploration wells be sited on crestal locations on large tensional structures. This will maximize drainage and reduce the associated dewatering costs, an expensive ancillary requirement for both coal bed methane and basin centred gas production. Down flank production wells, probably less productive, could
then be drilled later to develop the field.

An additional recommendation is that wells aimed primarily at the the Pedirka and Simpson Desert Basin sequences be drilled into the underlying Horn Valley Siltstone of the Amadeus Basin sequence; despite its tight and dirty nature. As it appears, by analogy with the same formation drilled in the Amadeus Basin to the west, to be gas saturated over a wide vertical and lateral extent. This very rich source rock appears to be an ideal candidate for fracture stimulation and it is known to be oil prone. This unit should be investigated by coring and conducting fracture stimulation trials.

The Horn Valley Siltstone, under the western portion of the Pedirka Basin and in the Amadeus Basin proper, much of which is also held by Central, may also have potential for conventional gas and or liquids production.

Given the perceived lack of organic material in the Eromanga Basin sequence in Central’s acreage it is recommended that Mesozoic targets only not be drilled at this stage.

The Company should be very watchful whilst drilling through the Poolowanna Formation as this unit is the most prospective in the Mesozoic section.

In the initial stages of exploration the search for conventional and nonconventional hydrocarbons should be combined to quickly prove up a resource, which could confirm economic viability.

A final recommendation is that the all early exploration holes be fully cored through the coal units to accurately gauge their thickness and that the subsequent cores be fully analyzed with a particular emphasis on gas saturation, cleating and other fundamental properties.

A final recommendation is that the all early exploration holes be fully cored through the coal units to accurately gauge their thickness and that the subsequent cores be fully analyzed with a particular emphasis on gas saturation, cleating and other fundamental properties.


18.0 CONCLUSIONS

The major conclusion of this report is that Central Petroleum Pty Ltd’s Pedirka Basin acreage is prospective for hydrocarbons, either reservoired conventionally or non-conventionally.

The coals of the Pedirka and Simpsons Desert Basin sequences are rich mature source rocks and correlatives of them have sourced many oil and gas accumulations in adjacent basins. The carbonaceous shales of these units are also known to be good, mature source rocks Similarly the very rich source rocks of the Horn Valley Siltstone of the underlying Amadeus Basin sequence are known to be the source interval for the Mereenie and Palm Valley Oil and Gas Fields, respectively of the Northern Territory, but the nature of the sequence in Central’s permits is largely unknown. If suitable facies are encountered during drilling then this gas saturated, but tight, unit could be a candidate for fracture stimulation.

If the Company’s exploration programs are successful the sheer size of target resource should enable the construction of a large scale GTL plant and or a CTL plant. Recent feasibility studies suggest that these processes are economic at the current oil price. However the economic viability of these processes are volume dependent.

• Ready markets exist for the sale of liquids and to a lesser extent gas, and other chemical by products.

• Central have a very innovative and elegant proposal to utilize a known, but undeveloped, possible resource of large magnitude in a remote location.

The company has an overwhelming acreage position in the Pedirka Basin area and will dominate production from it if their exploration programs are fruitful.

• The Pedirka and the associated basins in the company’s acreage are virtually unexplored and potential exists for large discoveries of hydrocarbons either of a conventional or non-conventional nature.