Perth, Apr 10, 2008 (ABN Newswire) - Central Petroleum Limited (ASX: CTP)(PINK: CPTLF) has today signed a binding contract with Hunt for the use of its Rig 2 in the forthcoming exploration programme in central Australia in joint venture with Petroleum Exploration Australia Limited, (PXA) Rawson Resources Limited ("RAW") and He Nuclear Limited (HEN). Central has farmed out acreage to PXA and HEN and is farming in to 3 prospect blocks in the highly prospective Pedirka Basin EP97 owned by RAW.

The Hunt contract covers the conventional wells Blamore 1 and Simpson 1 in the Pedirka Basin with options for Central to extend the contract to cover 3 Coal Bed Methane wells also located in the Pedirka Basin as well as the Mt Kitty (gas, condensate and Helium) and Ooraminna (gas) prospects in the Amadeus Basin. Additional optional wells in the Amadeus Basin are the Johnstone oil prospect, the Magee gas, condensate and Helium prospect and the Waterhouse gas prospect.

The drilling rig is expected to be mobilised from the Cooper Basin sometime in the next few weeks and is awaiting only the compaction with water and rolling of the access roads already constructed. Drill pads have been levelled and casing supplies have arrived in Alice Springs.

Central has agreed a firm programme with its joint venture partners to drill 4 conventional wells and 3 CBM wells in 2008.

The partners have approved a 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 October :

- 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 already commenced, completed by early May 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 April, survey completed May, results August

Contingent wells :

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

- 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)

Rolling Convertible Bond

Central announced recently the initial conversion of 70 bonds totalling $700,000 into ordinary fully paid shares of Central Petroleum Limited under the rolling convertible bond series.

As subscriber to the Bond Subscription Agreement approved by shareholders on 21 December 2007, D.B. Zwirn Mauritius Trading No.3 Limited has received 4,666,666 ordinary shares in Central Petroleum Limited, in satisfaction of the conversion of the above bonds.

Up to A$80 million is available contingently via this arrangement.

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