CENTRAL PETROLEUM LIMITED — Capital/Financing Update 2007

Dec 17, 2007

ASX ANNOUNCEMENT RELEASED to the ASX DATE: 181207

TO: Manager, Company Announcements ASX Limited

CONTACT: John Heugh +61 8 9474 1444

CENTRAL PETROLEUM’s SEISMIC AND DRILLING SURGE 2008

Central Petroleum Limited (ASX ticker CTP-“Central”) is committed to a major phase of exploration activity in its Amadeus and Pedirka/Eromanga Basin permits in 2008.

Line clearing began in December for an extensive 2D seismic survey (totalling up to 1153 km) in the Amadeus and Pedirka/Eromanga Basins (Table-1) and the crew and equipment have been mobilised from the Canning Basin (Arc Energy programme) to central Australia. The survey is an adjunct to a 483 km seismic survey acquired in early 2007. Terrex Seismic, Dynamic Satellite Surveys and Terrex Contracting are the main contractors for the seismic acquisition programme.

The 2008 survey will provide further pre-drilling detail of the Johnstone (Amadeus Basin – oil) and Magee (Amadeus Basin- Helium, gas, condensate) prospects. Total hydrocarbons addressed by these two prospects are 173 MMbbl, 65 BCFG and 4 BCF Helium. Eight other Amadeus Basin structural leads will be detailed and address 10 TCFG while the Stuart and Gypsum Amadeus Basin structural leads could host up to 63 MMbbl. OOIP.

All estimates provided in this announcement unless otherwise annotated are based on Undiscovered Petroleum Originally in Place at “high” estimate if filled to spill (SPE).

In the Pedirka/Eromanga Basin, the current survey will detail three strong oil leads, the Vivienne, Guinevere and Madigan leads. Total petroleum addressed by these leads is 1.3 Billion barrels oil.

Central Petroleum currently has five drillable prospects including Blamore-1 (oil), Simpson-1 (oil), Ooraminna-2 (gas), Mt Kitty-1 (gas/Helium/condensate) and Waterhouse-3 (gas) and three CBM (coal bed methane) wells on its books ready for attention in 2008. A further two prospects/leads may reach drillable status following new seismic mapping based on the 2008 seismic program (Johnstone-1 and Magee1).

Recent remapping of two important drillable oil prospects in the Pedirka/Eromanga Basin, i.e. the Blamore and Simpson Prospects, has facilitated an update of “high” estimate original-oil-in-place (OOIP) of 81 mmbl and 161 MMbbl respectively. For its 2008 drilling program Central has targeted geological variance in its prospects to mitigate geological risk, relatively shallow drilling targets to reduce cost and has also favoured large oil/gas-condensate-Helium prospects potentially capable of delivering very significant early cash flow.

The drilling program for 2008 comprises two firm wells (either of Blamore 1 or Simpson 1 and Mt Kitty 1) with additional drilling of up to a further 5 conventional wells and 3 CBM wells contingent on inter alia, final consummation of a farmout agreement and continuation of a rolling convertible bond proposal awaiting approval of Shareholders on December 21[st] , 2008. Hunt Energy and Minerals Co.-Australia have been selected as the drilling contractors as previously announced.

Table 1 Prospects and Leads 2008 Seismic Programme

Oil Targets	Basin	Permit	Closure (acres)	Size(km2)	Gross col (ft)	N/G	OOIP (MMBL)	OOIP (MMBL)
Vivienne*	Pedirka	EP93
Poolowanna			2298	9	80	0.7		34
Tirrawarra Equ.			2298	9	80	0.6		42
Guinevere*	Pedirka	EP93
Poolowanna			9390	38	230	0.7	478
Tirrawarra Equ.			9390	38	230	0.6	683
Madigan*	Pedirka	EP97/EP93
Poolowanna			5436	22	100	0.7		99
Tirrawarra Equ.			5436	22	50	0.6		41
Johnstone Prospect	Amadeus	EP115
Pacoota Sandstone			13750	55	80	0.75	173
Stuart*	Amadeus	EP115
Pacoota Sandstone			3000	12	80	0.75		38
Gypsum*	Amadeus	EP115
Pacoota Sandstone			2000	8	80	0.75		25
			Closure		Gross		OGIP		He
Gas Targets		Permit	(acres)	Size(km2)	col(ft)	N/G	(BCF)		(BCF)
Wells*	Amadeus	EP115
Heavitree Qz.			106250	425	85	0.65	3164		190
Magee*	Amadeus	EP82
Heavitree Qz.			12000	48	20	0.6		65	4
Petermann Crk
Anticline*	Amadeus	EP112
Heavitree Qz./Pioneer
Sst			39000	156	85	0.65	1162		70
Walker Crk Anticline*	Amadeus	EP112
Heavitree Qz./Pioneer
Sst			46750	187	85	0.65	1392		84
Seymour Anticline*	Amadeus	EP112
Heavitree Qz./Pioneer
Sst/Arumbera Sst			31250	125	85	0.65	931		56
		EP112/
Liddle Hills Anticline*	Amadeus	EP118
Heavitree Qz.			46750	187	85	0.65	1392		84
Canteen Anticline*	Amadeus	EP112
Heavitree Qz.			21750	87	85	0.65	648		39
Inindia Bore Anticline*	Amadeus	EP118
Heavitree Qz.			28000	112	85	0.65	834		50
Cavalry Bore Anticline*	Amadeus	EP112
Heavitree Qz./Pioneer
Sst			18750	75	85	0.65	558		34

Ooraminna 2, Waterhouse 3 and **Mt Kitty 1 not shown in Table 1 are thought to have “high” recoverable prospective resources estimates of 3.4 TCFG and 105 BCFG Helium. (Young 2005)

• All structures are estimated at fill to spill basis, Society of Petroleum Engineers (SPE) Undiscovered Petroleum Initially in Place “high” estimate guidelines

• All Amadeus Basin prospects and leads will probably rely on fracture porosity to some extent and it is deemed to be less than 2% of gross rock volume

• All original hydrocarbon in place numbers were derived from current mapped closures, excepting leads which have sparse seismic coverage, but in the Amadeus Basin there is frequently some outcrop and aeromagnetic control to add definition pending further seismic in the 2008 programme

• • Additional unquantified oil potential in the Algebuckinna Formation exists if the Poolowanna seal is absent or breached

• * Lead

• ** Drillable with existing seismic

Yours faithfully Central Petroleum Limited

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John Heugh Managing Director