This is a interesting article on Monday, October 26, 2009 at...

This is a interesting article on
Monday, October 26, 2009 at www.proactiveinvestors.com.au

CTP submitted a Minimum Exploration and Appraisal Programme and Budget 1 and 1/2 weeks ago to the Petroleum Exploration Australia Broadacre JOA participants which provides for work and expenditure towards compliance with the Minimum Work Obligations of the Broadacre permits.

Under the JOA, the Minimum EAPB is now regarded as being unanimously approved by the operating committee.

Accordingly the company, as operator, is required to implement the programme, and proposes to commence doing so immediately by signing contracts with Wallis Drilling Pty Ltd for a five well fully-cored coal seam gas programme and with Terrex Seismic for a 1,380 line km seismic acquisition programme.

Some of the seismic programme -- involving some 400 line km -- is outside of the PXA Broadacre Joint Venture, and has been approved by Trident Energy Limited, He Nuclear Limited, and the operator.

Apart from Ooraminna 2, the seismic programme is considered to be necessary to fine tune well locations for a number of both conventional and coal seam gas wells proposed to be drilled in 2010.

The line clearing crew for seismic is expected to mobilised by mid November 2009 and the drilling rig for the X5 CSG wells by late November 2009.

The company looks forward to expediting a productive exploration programme drawing upon the well established technical qualifications and experience of its various Joint Venture participants and looks forward to welcoming Red Sky Energy (NT) Pty Ltd into the Broadacre Joint Venture at the earliest opportunity, said Central Petroleum managing director John Heugh.

Central will be using all reasonable endeavours and acting in good faith to resolve a dispute in connection with PXA not executing the deeds of assumption in relation to the farm-in by Red Sky Energy, Mr Heugh said.