CENTRAL PETROLEUM LIMITED — Capital/Financing Update 2007

Oct 23, 2007

ASX ANNOUNCEMENT RELEASED to the ASX DATE: 231007

TO: Manager, Company Announcements ASX Limited

CONTACT: John Heugh +61 8 9474 1444

Granting of EPs 105,106 and 107

Exploration Permits EPs 105, 106 and 107 (“permits”) have been formally granted to Traditional Oil Exploration Pty Ltd. (“Traditional”) The sale and purchase agreement with Merlin Energy Pty Ltd, (“Merlin”) a wholly owned subsidiary of Central Petroleum Limited will now be completed via the issue of $375,000 of shares and the transfer to Merlin of the permits concerned.

Subject to the production of petroleum from the permits for a minimum of one calendar year a further $1 million shall be paid to Traditional and an ongoing 1.5% gross wellhead production bonus less certain costs relevant downstream to point of sale.

The acquisition will add an additional 27,000 square kilometres or 6.5 million acres of ground to Central's portfolio of granted permits now consisting of EPs 82,93,105,106,107,112,115,118 and 125.

The Traditional permits purchase will give Central about 19,500 sq km of additional ground in the Amadeus Basin which contains the Train Hills and Centenary West leads, which could potentially host up to 0.4 Trillion Cubic Feet (Tcf) of gas, along with condensate and helium, according to a recent study by the Northern Territory Geological Survey.

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In the underexplored Pedirka basin portions of the permits, the Traditional purchase will give Central 7,500 sq km of additional ground hosting prospective conventionally reservoired resources as well as prospective potential coal bed methane (CBM) in extensive Permian, Triassic and perhaps Jurassic sediments assessed by independents as hosting potentially recoverable Coal Bed Methane prospective resources ranging from 9 to 13 tcfg “low” to “high” estimates and giving a total of 34 to 70 tcfg “low” to “high” estimates in all of Central’s Pedirka Basin acreage consisting of EPs 93, 105,106 and 107 and permit applications EPAs 130,131 and PELA 77 across the border in South Australia.

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John Heugh, Managing Director, Central Petroleum Limited