announcment out

ASX ANNOUNCEMENT ASX CODE: CTP
5 July 2010
TO: The Manager, Company Announcements ASX Limited
CONTACT: John Heugh +61 8 9474 1444
Joint Venture Developments
Pursuant to the relevant Farm Out Agreements and Joint Operating Agreements
between Central Petroleum Limited (ASX:CTP) (?Central?), certain of its subsidiaries
and Red Sky Energy (NT) Pty Ltd (?ROGNT?), a series of default notices have been
sent to ROGNT: (i) by Central, in its capacity as Operator of the various Joint Ventures,
for recovery of monies owed to the affected Joint Ventures for outstanding cash calls
issued totalling approximately $1.9 million; and (ii) by the respective Central
subsidiaries for recovery of Farm-out Costs under various Farm Out Agreements
totalling approximately $3.8 million (this sum includes the previously referred to $1.9
million).
Notwithstanding the defaults and the ultimate outcome of such notices, Central intends
completing the current drilling of Ooraminna 2 and Johnstone West 1 well and,
contingent upon additional seismic currently being processed and mapped, the drilling
of Magee 2 within the HEN Magee Prospect Block Joint Venture, forming the southern
portion of EP82 outside of the EP82 HEA and ROGNT Joint Venture.
John Heugh
Managing Director
Central Petroleum Limited