Central Petroleum Limited, as Operator, advises that coal seam gas ('CSG) exploration well CBM107001 in EP 107 reached a TD of 1251m on 24 February 2010.

Key Points • Central Petroleum (ASX: CTP) reports preliminary results from CSG exploration well CBM107001 in EP 107 in central Australia's Pedirka Basin show 120m of coal (in seams > 1m thick) with individual seams up to 30m thick. • Results were 300% higher than estimated and coals were intersected over the interval 745m-1163m. • Results are consistent with analogous sub-bituminous coals intersected 95km north in CBM93001 and CBM 93004. These wells intersected 138m and 144m of coal respectively, in seams greater than 1m thickness. • Central holds a 70% interest and is Operator in EP 107, through wholly-owned subsidiary Merlin Energy Pty Ltd, and is in JV with Petroleum Exploration Australia (20%) and Red Sky Energy (NT) Ltd (10%). • Next well in the drilling program, CBM107002 (EP 107), will target the coal sequence in an updip location about 31 km to the northwest of CBM107001.

The well targeted early Permian Purni Formation coals in the Pedirka Basin in central Australia and preliminary results show drilling encountered 120m of coal (in seams > 1m thick) with individual seams up to 30m thick.

This result was significantly (300%) higher than the prognosed coal section of 20-40m of coal in seams greater than 1m thickness. The coals were intersected over the interval 745m to 1163m.

These preliminary results, which are subject to review dependent on further analysis and review of data being generated, are essentially consistent with analogous sub-bituminous coals intersected 95km to the north in exploration wells CBM93001 (EP 93) and CBM93004 (EP 93) which intersected 138m and 144m of coal respectively in seams greater than 1m thickness.

The coal will require remapping and may result in an upgrading of the potential coal exploration target resource on the southern Andado Shelf.

The wells are part of Phase One of Central's 2009/10 exploration program. This program included approximately 1400km of seismic across the breadth of the Company's extensive holdings in central Australia's Amadeus and Pedirka Basins and 5 cored Coal Seam Gas (CSG) wells targeting coal and CSG in the Pedirka Basin.

Tags: Central Petroleum Limited