From Proactive Investors UK.Thursday, December 17, 2009 Central...

From Proactive Investors UK.

Thursday, December 17, 2009

Central Petroleum announces commencement of exploration programme

Central Petroleum (ASX: CTP) and its joint venture participants have commenced the Phase One exploration programme with the recent spudding of CBM93004 to explore for Coal Seam Gas in the Pedirka Basin in South Australia.

Today, the well had reached 552m in the Purni Formation, the main coal bearing formation in the district and had drilled through c.15m of coal from 545m-560m RKB with a background gas of some 1-3 units methane.

The Permian Purni Formation was tagged at 502m provisionally subject to later electric loging confirmation.

The $32 million Phase One programme calls for 1,450 km of seismic, the drilling of 5 CSG wells and the drilling of Ooraminna 2, a gas well. Seismic line clearing has already commenced in the EP 115, Johnstone, Surprise and Stuart oil prospect areas with seismic acquisition programmed to commence in early January 2009 as well as a $295,000 GoreTM geochemical survey over several oil prospects in EP 115, the Johnstone, Surprise and Stuart prospects.

Petroleum Exploration Australia, He Nuclear Limited and Trident Energy are retaining participating interests earning between 10% to 20% variously across CTPs operated permits and the Rawson EP 97 prospect block farmins in central Australia. Details of the various permits and interests have been announced previously.

At a recent series of Operation Committee meetings the various Joint Venture participants approved the Phase Two 2010 programme.

Additional wells proposed by CTP, the Operator, including Surprise1, Stuart 1, North West Mereenie 1 Waterhouse 3, Mt Kitty 1 and 10 CSG wells in the Pedirka Basin may be approved by further OPCOM meetings subsequent to the completion and analysis of the Phase One programme.

The Phase One programme is anticipated to be completed by March/April 2010 and the Phase Two programme may commence as early as April/May 2010.

http://www.proactiveinvestors.co.uk/companies/news/11476/central-petroleum-announces-commencement-of-exploration-programme-11476.html