drill rig mobilised

Mobilization of Hunt Rig 2 commenced on 10th June with the planned sequence of the Blamore 1 well followed by two Coal Bed Methane wells (CBM) and then the Simpson 1 well in the Pedirka Basin. Heavy rains in both the Simpson Desert and Cooper Basins have delayed departure of some rig components but the Blamore 1 well is anticipated to spud somewhere between June 26th and June 30th. Time to complete mobilization is approximately 10-15 days on a trouble free basis. An updated Gant chart is attached.

The Blamore track has been completed and the drilling pad almost complete. Some sections of road from Kulgera to Andado to North Bore have had to be re-graded due to the impact of heavy rain causing some localized flooding.

A total of three CBM wells are planned in the Pedirka Basin and will be the first in a series planned to flow test possible CBM recoverable resources of 34-70 TCFG in the Permian and Triassic coals known to be distributed through the Pedirka Basin by previous drilling and regional seismic.

Blamore 1 and Simpson 1 oil wells are addressing up to 260 MMbbls of undiscovered oil initially in place (UOIIP)

Central is in Joint Venture with Rawson Resources Limited (RAW) and Petroleum Exploration Australia Limited (PXA) on Simpson 1 and with PXA on the CBM wells and Blamore 1.

Central plans also in 2008 to drill the Mt Kitty 1 (prospective recoverable resources up to 1.7 TCFG with condensate and Helium credits) and Ooraminna 2 (prospective recoverable resources of up to 0.7 TCFG) wells in Joint Venture with He Nuclear Limited (HEN) and Petroleum Exploration Australia Limited (PXA) respectively.

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