An agreement has been reached with Central Petroleum...

An agreement has been reached with Central Petroleum Limited
(Central) and its partners to continue exploring in the Simpson
Block of EP 97. Rawson will be fully carried for its 20 percent
share of this program for allowing the Central Joint Venture to
earn 80 percent of the Bejah farmout block in EP 97.
„hƒn The Central Joint Venture has agreed to acquire a further 83
kilometres of new seismic, the Lucan seismic survey, and drill
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another well in the Simpson Block. The new seismic will help
define new drilling targets with up to 10 million barrels of oil
potential. The seismic and drilling programme will probably cost
$5 million.
„hƒn This activity in EP97 is of great benefit to the Company, who holds
a 100 percent interest outside of the Simpson and Bejah farmout
blocks.
„hƒn Residual oil staining in Simpson-1 at the Poolawanna Formation
Cycle-1 reservoir/seal interface may indicate local indigenous
sourcing from Poolawanna shales indicating this source is in the
mid-late oil window in the axis of the Madigan Trough. This
enhances the prospectivity of robust dip closures at the Madigan
and Simpson East prospect areas which lie on migration
pathways from the Madigan Trough axis.
„hƒn An important Poolawanna Formation prospect lies up-dip of
Simpson-1 at Simpson East. This feature also overlies a Devonian
- Carboniferous platform play with the Erec and Lucan Prospects.
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„hƒn While commercial oil was not encountered in either the Blamore-
1 or Simpson-1 well, the residual oil columns in each are consistent
with the pre-drill models predicting oil charge into the area from the
Madigan Trough.
„hƒn In addition, recent drilling by Central, in the permit adjacent to
the west has high graded the potential for Permian CSG plays in the
northeast of EP 97. In Blamore¡V1 the Permian coal-bearing sequence
is up to 600 metres thick. Drilling activity including several CSG wells
is planned by Central Petroleum in the Permits adjacent to the west
of EP 97 in 2010. Data from this drilling can be used to help ascertain
the CSG potential in the EP97 permit.