announcement out

ASX ANNOUNCEMENT & PRESS RELEASE ASX CODE: CTP
29 September 2011
TO: The Manager, Company Announcements ASX Limited
CONTACT: John Heugh +61 8 9474 1444
Dispute status with Century Energy Services Pty Ltd
Yesterday the Supreme Court of Western Australia published its decision on an application by
Central Petroleum Ltd (ASX Code: CTP) ("Central") for an injunction restraining Century
Energy Services Pty Ltd ("Century") from demanding or obtaining payment under a Banker's
Undertaking. Central had provided the Banker's Undertaking as security for payment for drilling
services provided by Century between May and December 2010. The contract pursuant to
which the services were provided was terminated as a result of a breakdown of the rig on 5
December 2010.
Century had initially claimed that it was entitled to be paid an amount of $795,649.36 in addition
to the amounts already paid for services provided up to the point of termination of the contract.
While the Court decided against granting an injunction, Century has through the process
reduced its claim to between $312,282.66 and $358,832.66.
In respect to Century’s claim for payment, Central says that it has a claim arising from the
breakdown and termination which is for a far greater sum. It has made a claim against Century
for costs incurred as a result of the breakdown and termination, and for the likely costs
associated with the logistics and the re-entry and drilling of Surprise 1 to the depth reached at
the time of termination of the contract with Century in December 2010. Central has commenced
arbitration proceedings in connection with this claim. Century has disputed Central's claim.
Central and Century are currently engaged in amicable discussions in an attempt to resolve
these issues without the need for continuing arbitration proceedings. If these discussions do not
lead to an agreed resolution, these issues will be resolved by arbitration, which would likely
occur in April 2012.
John Heugh
Managing Director
Central Petroleum Limited