Extract of the 15th Feb 2008 Initial MoU ....with CTP and PXA...

Extract of the 15th Feb 2008 Initial MoU ....with CTP and PXA from
http://www.abnnewswire.net/press/en/48274/CENTRAL-PETROLEUM-LIMITED.html
"The firm programme is planned however, subject to any operational contingencies, to include the drilling of 4 conventional wells, 3 Coal Bed Methane (CBM) wells and a c.1,150 km 2D seismic acquisition programme which has already commenced as well as a 30,000 km2 gravity survey over SPA 7/04-5 in Western Australia. Additional drilling options for a further 3 conventional wells have been agreed.

Under the agreement, PXA(now QGC) will fund 40% of pre-drilling seismic acquisition, up to a limit of A$3 million per permit; and 40% of the cost of drilling up to three exploration wells in each of Central's permits numbering 27 in a mix of 9 granted permits and various applications. The exploration package spans an area of c.250,000 km2 in 4 distinct sedimentary basins (the Amadeus, Pedirka, Lander Trough and Georgina basins). These areas have received very little exploration attention for decades due to their relative isolation and sustained low oil and gas prices. Central's push for control of the petroleum potential of central Australia began in 1998 when oil was trading at US$12/bbl and there was little interest by other companies in these vast tracts of prospective ground.

PXA(QGC) may retain a 20% participating interest in each of the prospects drilled and their corresponding permits. Should PXA(QGC) cease expenditure prior to the completion of the full exploration programme in any permit, it shall retain a 20% interest in any producing field it has contributed to the discovery well upon provided it is compliant at the time with any seismic programme approved by the Joint Venture Operating Committee. Subject to the compliance with the seismic programme as outlined, PXA(QGC) may also retain an incremental interest of 6 and 2/3% interest in the relevant permit for each well it contributes to in the first three wells leading to a maximum 20% participating interest in the permit concerned.

If PXA(QGC) were to contribute to the maximum extent possible under the agreement, it would be funding a total of up to $32 million of seismic costs and c.$130 million to the drilling of up to 81 EXPLORATION WELLS based on conventional targets. The partners have agreed to "deem" the expenditure of $2 million increments of Coal Bed Methane (CBM) or tight gas sand/shale exploration drilling as each equivalent to one conventional well for the purposes of earning interests in relevant permits where relevant."

Lets just call this the BASIC arrangement for now because we could hear somewhat major revisions and modifications to this soon BUT lets keep it as such so....

And as already said before by a few posters and since these figures would be getting close to $80 million dollars spent NEXT YEAR? This all without any cost to CTP? Fantastic!
So then by this time next year with an up to a possible 30-40 drillings completed (assuming at least 5 drills in operation).
-hopefully all we would want say just maybe is 2-3 NEW major CBM strikes (similar in size to the first Pedirka finds) , Helium at perhaps 2 locations and lets say 2 oil strikes. WOW??
(BUT no certainties yet- let wait for these!)

What price CTP in 12 months??? OK probably better keep quiet on this ALSO but most regulars have an excellent sense to what this should be and NOT the 50 cents some posters were saying today - again lets wait and see.
Patience fellow believers - Chapter 3 is all unfolding beautifully now!

DYOR if you are uniformed as to this stock please.