Adelaide, Oct 1, 2008 (ABN Newswire) - Central Petroleum Limited (ASX:CTP)(PINK:CPTLF) has today spudded Simpson 1, approximately 100km to the southeast of the recent successful Coal Bed Methane well, CBM93001. The well is targeting Undiscovered Oil Initially In Place of up to 190 MMbbls ("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.

Delays to the planned spud date of 270908 were occasioned by an intense Simpson Desert sand storm which covered the existing access road and partially by the failure of a contractor to have appropriate equipment available when required.

Central is also 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, unless otherwise agreed, is free to deal conclusively with other interested parties.

It is possible that a new Joint Venture partner may join the existing Joint Venture arrangements with Rawson Resources Limited (ASX ticker RAW), Petroleum Exploration Australia (unlisted PXA) and He Nuclear (unlisted HEN). Modification to the existing 2008 seven well programme could result from such a contemplated new arrangement.