Pursuant to the relevant Farm Out Agreements and Joint Operating Agreements between Central Petroleum Limited, certain of its subsidiaries and Red Sky Energy, a series of default notices have been sent to ROGNT: (i) by Central, in its capacity as Operator of the various Joint Ventures, for recovery of monies owed to the affected Joint Ventures for outstanding cash calls issued totalling approximately $1.9 million; and (ii) by the respective Central subsidiaries for recovery of Farm-out Costs under various Farm Out Agreements totalling approximately $3.8 million (this sum includes the previously referred to $1.9 million).

Notwithstanding the defaults and the ultimate outcome of such notices, Central intends completing the current drilling of Ooraminna 2 and Johnstone West 1 well and, contingent upon additional seismic currently being processed and mapped, the drilling of Magee 2 within the HEN Magee Prospect Block Joint Venture, forming the southern portion of EP82 outside of the EP82 HEA and ROGNT Joint Venture.

Tags: Central Petroleum Limited