Central Petroleum ASX:CTP Stock Report

Central Petroleum Limited Announces Palm Valley 12 Drilling Update

Central Petroleum Limited (‘Central’) announced that on 16 May 2022, the Palm Valley 12 (PV12) well in OL3, Southwest of Alice Springs in the Northern Territory, had reached a depth of 1,687m at 0600 hrs ACST in the Lower Stairway Formation. Drilling of the 12 ¼" hole commenced on 10 May 2022 following on from the testing of surface equipment and the blow out preventor (BOP). After a planned and successful Formation Integrity Test (FIT), drilling continued in the 12 ¼" section to the current depth of 1,687m MD. In the past week 584m of drilling has occurred in-line with expectations. It is anticipated that the 12 ¼" section total depth (planned at approximately 2,005m) will be reached on 18 May 2022. The PV12 well has two alternate objectives, consisting of a deeper gas exploration target or a shallower gas appraisal lateral that could become a production well. The primary exploration target is the Arumbera Sandstone at an anticipated depth of 3,560m. The PV12 well is the first of a 2-well drilling program that also includes the Dingo-5 exploration /production well. Both wells are being drilled under joint ventures between Central (50% interest), New Zealand Oil & Gas Limited (35% interest) and Cue Energy Resources Limited (15% interest) and are scheduled to be completed this year.

Central Petroleum Limited Announces PV12 and Dingo-5 Program Update

Central Petroleum Limited (Central) has identified the Pacoota-3 interval (Pacoota- 3) as a possible new appraisal target that may be integrated into the current PV12 drilling program. Gas at the Palm Valley field has predominantly been produced from the reservoir comprising the Pacoota-1 interval (Pacoota-1) of the Pacoota Sandstone. The top of the Pacoota-3 interval is located approximately 90m below the Pacoota-1 formation. The PV12 well is expected to intersect the Pacoota-3 formation later this month as it drills to the PV Deep exploration target, the Arumbera formation. Central and its joint venturers, New Zealand Oil & Gas Limited (NZOG) and Cue Energy Resources Limited (Cue), are currently considering: Running additional diagnostic logs on the Pacoota-3 after drilling through the formation. Purchasing certain long-lead equipment in advance of a final JV decision on appraising the Pacoota-3 interval in order to preserve the opportunity to include it in the PV12 drilling program. Drilling an appraisal lateral into the Pacoota-3 interval in the event the PV Deep exploration target is unsuccessful. This would then be followed by the currently planned Pacoota-1 appraisal lateral should the Pacoota-3 lateral be unsuccessful. Integration of the Pacoota-3 appraisal program could result in changes to the timing, sequence, duration and potential costs of the current drilling program. A final JV decision on the Pacoota-3 appraisal would be subject to technical results obtained after drilling through the interval and the outcome of the PV Deep exploration target. A key driver for appraising the Pacoota-3 formation as part of the PV12 drilling program is that the Pacoota-3 lateral could be quickly connected to the existing Palm Valley production facilities and sold into the currently strong gas market. The PV12 and Dingo-5 well costs are exceeding initial forecasts. These cost increases are, in part, driven by: increased fuel & freight costs, which are particularly material given the remote location, increased cost of civil works and equipment costs, and delays in initial rig mobilisation to site. The additional program costs up to 30 April total approximately $3.1 million (gross JV), without using any contingency. Central is pursuing a number of opportunities to mitigate future program cost pressures. Central's share of costs for the PV12 and Dingo-5 wells are being carried by NZOG and Cue under an asset sale that was completed on 1 October 2021.

Central Petroleum Limited Announces Palm Valley-12 Weekly Drilling Update

Central Petroleum Limited Provides Project Range Update

Central Petroleum Limited provided the following update on Range-9 and Range-10, the two Single Well Pilots in the Surat Basin. Both wells have been operating continuously since commencement of pumping on 4 April 2022. A gradual well drawdown is underway, with the fluid level currently about halfway down to the pumps. Gas breakthrough was observed in the annulus immediately upon commencement of pumping, indicating the presence of coals that are fully saturated with gas. Shortly after pumping commenced, sufficient gas was being produced to sustain the flare. After around four weeks of well drawdown, the aggregate daily gas rate has reached around 9,000 scfd and is expected to continue climbing. The principal focus of the Single Well Pilots will be to gain greater insights into the ramp up of gas over time. Hence, it is expected that these wells will be operated for significantly longer than the first pilot. It is also intended to restart Range-6 during May to provide similar Single Well Pilot performance data over time across a broader area.