Perth, Feb 29, 2008 (ABN Newswire) - Central Petroleum Limited, ("Central")(ASX: CTP) - operator of Australia's largest onshore acreage holding - is pleased to report that the first OPCOM meeting has been had with both of its Joint Venture partners Petroleum Exploration Australia Limited (PXA) and He Nuclear Limited (He Nuclear).

The partners approved a $31 million budget for a major seismic and drilling programme in the Northern Territory where Central controls the biggest acreage package in Australia of 60 million acres.

The programme is as follows dependent on various contingencies:

Firm wells April to September :

- Blamore oil 71 MMbbls UOIIP ready to drill

- Simpson oil 190 MMbbls UOIIP ready to drill

- CBM 1-3 first stage exploration for 34-70 TCFG prospective recoverable resources ready to drill

- Mt Kitty gas- Helium-condensate 3.0 TCFG, 185 BCFG Helium UGIIP ready to drill

- Ooraminna gas-1.9 TCFG UGIIP ready to drill

- Total undiscovered resources addressed in the firm drilling programme: 261 MMbbls UOIIP, 4.9 TCFG, 105 BCFG Helium UGIIP plus condensate credits plus first stage exploration of 34-70 TCFG CBM prospective recoverable resources exploration

Other (Firm) :

- 1,150 km seismic 2D acquisition completed by end April addressing addressing 17 gas and 6 oil prospects/leads with 17 TCFG UGIIP and 1.6 billion bbls UOIIP (additional to the 4 firm wells)

- 30,000 km2 aerograv SPA 7/04-5 grant anticipated mid March, survey completed May, results August

Contingent wells :

- Johnstone oil 320 MMbbls UOIIP additional predrilling seismic fully mapped by June

- Waterhouse gas 2.7 TCFG UGIIP ready to drill

- Magee gas-Helium-condensate 60 BCFG, 4 BCFG UGIIP additional predrilling seismic fully mapped by July

Firm programme budget

- c.$31 M, funded by PXA/He Nuclear to c.$13 M, CTP c.$18 M

- Start of programme late 2007 CTP $14 million in bank, planning on $7 million additional capital to cover 2008 programme plus corporate costs

- PXA and He Nuclear to fund their promoted share of expenditure on the firm programme from inception late 2007

(UOIIP-Undiscovered Oil Initially In Place "high" estimate, UGIIP-Undiscovered Gas Initially In Place "high" estimate SPE)

"This programme has been gathering steam for some time but the waiting is just about over, with our first well planned to be spudded late April 2008 and the first drawdown on our rolling convertible bond series anticipated imminently" said Mr Heugh, Central's Managing Director. He cited several reasons for delays suffered in the drilling including :

- Termination of the White Sands Petroleum farmin which was to have provided a drilling rig

- Extended negotiation of access to Blamore and EP 93 with the Central Land Council

- Remoteness - high mob-demob cost and careful planning required

- Farmin negotiations of considerable complexity

- Negotiation and execution of the rolling convertible bond series agreement including negotiation with the ASX for an appropriate policy change

- Lack of recent activity in central Australia resulting in a lack of experienced support operators

- General increase of demand in oilfield rigs, equipment, crew & consultants

- Escalation of steel price and other imput costs requiring additional capital commitments

"This is the first major onshore exploration push in the Northern Territory and central Australia since the 1980s" Mr Heugh remarked, summing up an exciting chapter about to unfold in Central's history.

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