market cap under $150 mill !! ???, page-72

Yep; Right you are Hassko


http://www.centralpetroleum.com.au/files/downloads/12.01.23_company_insight_interview_surprise-1_reh_1069481.pdf

Company insight interveiw John Heugh Date of Lodgement: 23/1/12


But back to your question, although we’ve been investigating oil in Central Australia since 1997, we
did not drill our first conventional well until 2008. We
subsequently drilled a number of targets, the
most significant one of which was Johnstone West,
which, together with our seismic work on the
Johnstone trough structure, indicated a very nice rollover or dip closure. Then, after some follow-up
seismic work, we identified close to a large oil kitchen, the Johnstone Trough, a 4-way dip closure,
the target of the Surprise-1 well. This was
drilled in November/December 2010 and showed the
existence of oil beyond any doubt with an unrisked target of about 10 million barrels of oil in place
at P50 level and good permeability, at
least in part, in a 9m core th
at was retrieved from the well.
Unfortunately, a rig incident meant further drilling a
nd flow testing had to be
deferred and we had to
terminate the drilling contract. Then with the difficu
lty of securing drill rigs
in Australia we were
unable to start to redrill Surpri
se until November 2011. But by the
n, we’d hired Dalton Hallgren, a
horizontal drilling specialist from the US, who reviewed our data
on the first well
and convinced us
that the best approach to deliver
early production and cash flow was
to drill a horizontal section into
the zone we’d already core
d, and to flow-test it.
As I said, the result of this has been the mo
st significant event in the Company’s history.
Flow testing achieved a sustained
flow rate of 380 barrels of oil per day via a 32/64” choke over a 230 metre horizontal section and a Gross Vertical Thickness with continuous oil shows of
approximately 28 metres.

There are additional oil shows above this giving a potential maximum
thickness of oil shows in the Stairway Sandstone of some 68m;

We are not sure at this stage whether
this is a continuous oil column or not but this is a very positive result.
Further, the product is a light sweet crude with API Gravity averaging 40 degrees - a quality that
attracts TAPIS benchmark prices (that are currently around $120 a barrel). This is an eminently
saleable product.





Dalton Hallgren Companyinsight Date of Lodgement: 9/5/12

http://media.abnnewswire.net/media/en/docs/ASX-CTP-589220.pdf

I came into the Surprise operation just as they were
starting to drill, and after reviewing the core and
looking at the thickness of the permeability streak, I realised that Surprise resembled another sand-
play I’d completed in the US called the Tyler/Heath sand.
My team and I convinced Central’s Board into adjusting the plan and drilling a horizontal well – which we
could do for about the same cost of
the originally planned sidetrack.
So we drilled down to the maximum depth that our particular rig could handle, leaving our lower horizon targets for a later date. We then pulled back up and did our horizontal sidetrack. We utilised what we call geosteering using vertical offset logs and a gamma tool - we steered the horizontal through the different lithologies in the rock – targeting the streak we wanted to drill. Doing this, we
drilled the small horizontal at Surprise to within
a metre or thereabouts of our target. We’ll be
continuing to employ these and other techniques
I’ve brought across as we pursue our targets and
develop our properties


Surprise-1 REH is approximately 160 kilometres west
of the Mereenie oil field and the work done in
both areas indicates that there is the combination of oil generation,migration and oil trapping present
across the Amadeus Basin area.

Surprise – along with the Johnstone West #1 well – has given us a lot of valuable knowledge, and we think we can utilise some newer techniques and the lessons we’ve
learned from similar environments overseas to
sharpen our thinking and reduce Central’s ongoing exploration risk.

Overall, the Surprise discovery has meant the potential of our acreage in central Australia is starting
to be recognised. Moreover, with our large onshore acreages, we’re well placed to capitalise on the
opportunities in the current market. But I’m pretty
focused and so is our team.

Surprise was the
biggest event in this Company’s history, and we’re
working hard to engage our skills and take this
discovery to the next stage.