announcement out

ASX ANNOUNCEMENT ASX CODE: CTP
03 January 2012
TO: The Manager, Company Announcements ASX Limited
CONTACT: John Heugh +61 8 9474 1444
Clarification on Previous Announcement 064970: There is clearly some difficulty in interpretation of one part of this announcement and there is an error in a gas composition quoted. A revised announcement to clarify this follows with modifications in italics.
CENTRAL PREPARES TO FLOW TEST SURPRISE-1 RE-ENTRY H
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Flow testing planned by Friday 6 January 2012
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Approximately 230m of horizontal drilling with continuous oil and gas shows in sandstone completed
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Gross Vertical Thickness of continuous oil shows approximately 28m
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Continuous oil droplets in drilling fluid with occasional flow ribbons over shale shakers
Central Petroleum Limited (ASX:CTP) (“Central” or the “Company”) advises shareholders that flow testing of the well is planned to commence late this week.
A Measured Depth of approximately 2,854m with a True Vertical Depth of approximately 2,534m has been reached with approximately 230m of horizontal drilling in the target reservoir. Tight hole conditions have developed in the angle build section of the wellbore and consequently further drilling has been discontinued to safeguard the well integrity. It is planned to run a sleeve of 2.875” production tubing through this section to counter sloughing claystones and siltstones of the Middle Stairway Sandstone Member before testing commences. This will prevent any problems during testing and possible subsequent production.
Throughout the horizontal drilling, some dip changes were encountered but the drill bit remained in sandstone with continuous oil shows and during only approximately 10m of horizontal drilling were oil shows rated at less than good to excellent. 100% dull to bright yellow fluorescence and instant blue/white cut fluorescence were commonly recorded. ie c.230m of measured depth horizontal drilling was completed with a cumulative total of c.230m of continuous oil shows, c.220m of which were rated at good to excellent and c.10m of which were rated at poor to fair.
A drill break was evident at 2,676m Measure Depth. On circulation to the surface, black oil was evident on the shale shakers and a gas peak of 1,167 units was recorded with C1/C2/C3/iC4/nC4/iC5/nC5 percentages of 2/4/24/12/30/14/14 % respectively. Similar “heavy gas” dominated recordings were evident throughout drilling and circulation averaging in excess of 30-50 units with occasionally much higher peaks.
A continuous stream of oil on the surface of the possum belly 2-3cm wide was observed on occasion together with drilling fluid (brine) discoloured pale brown over shakers since the report released on 28 December 2011. Most of the time during drilling and circulation, free oil droplets were observed in the drilling fluid; on occasion covering approximately 60% of the surface of samples taken.
Continuous oil shows have been recorded over a Gross Vertical Thickness of approximately 28m.
Layer of oil on surface of sump during drilling. This has now been skimmed off and stored in environmentally safe containers for later disposal.
Oil coating 6” drill bit during horizontal drilling operations.
Further updates will be provided when any significant information becomes available.
Any results or conclusions reported are based on preliminary data analysis and may be subject to change as more data becomes available. Nothing in this report represents or should be construed to represent any conclusions as to the flow capability of the well. Such conclusions must await actual flow testing.