220908 Central Petroleum Limited (Central) mobilizes rig from CBM93001 to 190 MMbbls UOIIP Simpson prospect Central has begun to tear down Hunt Rig #2 for the shift to the site of Simpson 1, approximately 100km to the southeast where it is targeting Undiscovered Oil Initially In Place (“high” estimate UOIIP) in the Jurassic Algebuckina and Poolowanna Formations and the Permian Tirrawarra Formation. Depending on depths encountered, it is possible the total depth of the well may test the top of the transgressive sand and shale C horizon of the Devonian carbonate platform play. The spud date of Simpson 1 is anticipated to be by 28th September 2008. “Our exploration programme for 2008 is well and truly under way now” said John Heugh, Central’s Managing Director today. “Blamore and CBM93001 showed some truly impressive results with indications of a 50km wide swathe of thick, often gassy coals for future CBM assessment as well as underpinning the fundamentals required for meaningful petroleum exploration in the Pedirka Basin. Our first CBM well has been completed and suspended as a potential producer pending relevant permits from the government and dewatering” Central is in discussion with several potential partners pursuing opportunities for strategic investments in farmin deals as well as placement positions in Central. One such company has paid a $600,000 option fee for an exclusive right to negotiate and execute a mutually acceptable agreement if negotiations are successful. The option arrangement terminates on October 6th 2008, when Central is free to deal conclusively with other interested parties.
CTP Price at posting:
14.3¢ Sentiment: Hold Disclosure: Held
