CENTRAL PETROLEUM LIMITED — Capital/Financing Update 2016

Jun 26, 2016

ASX ANNOUNCEMENT AND ASX CODE: CTP MEDIA RELEASE

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27 June 2016

STAIRWAY SANDSTONE CONFIRMS GAS FLOW - LIFTS OIL PRODUCTION

The 30 day production testing of the Stairway Sandstone at Mereenie (operated by Central Petroleum in a joint venture with Santos) free flowed at an average of 1.5 million cubic feet per day (approximately 1.5 TJ/d). The 30 day production testing at the previously drilled West Mereenie-15 (WM15) finished on 22 June 2016. The test recorded low nitrogen content of 2.6%; well below the East Coast gas specification.

These results are encouraging as the well was not designed initially to optimise production from the Stairway Sandstone, and so higher rates may have been achieved if the well had been designed specifically for production from the Stairway.

WM15 was drilled in 1999 and completed as a producing well in the Pacoota Formation some 336 metres below the Stairway. To production test the Stairway, the Pacoota Formation was isolated and a sliding sleeve in the well opened allowing access to the Stairway Sandstone.

The Stairway Sandstone is not an existing zone of production and under the present Mereenie Gas Reserves certification is classified as part of the 182 PJs of 2C contingent resources (gross joint venture share) (see ASX Announcement “Mereenie Reserves Upgrade” dated 14 March 2016 (“ Mereenie Reserves Statement ”)). As highlighted in the Mereenie Reserves Statement, successful demonstration of this new production zone along with connection to the east coast gas market via the Northern Gas Pipeline is expected to enable these contingent resources to be certified as reserves.

Importantly, the production of low nitrogen gas allows Central to optimise our oil production resulting in a 7.5% lift in oil production last month at no extra cost. If continued this would create an additional annual gross production of 17,000 bbls (Central’s share 8,500 bbls).

“Given that the Stairway Sandstone is above the presently producing Pacoota Formation, any development of the Stairway will be able to access the existing field gathering systems. Its quality is such that the Stairway gas, if able to be developed, should be able to lower the processing costs of the whole of the gas production and, as a result, WM15 will remain on production,” said Richard Cottee, Managing Director of Central Petroleum Limited. “The potential for including the Stairway as incremental reserves is tantalizingly close”, he said.

General Disclaimer and explanation of terms:

This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which may be outside the control of the Company and could cause actual results to differ materially from these statements. These risks, uncertainties and assumptions include (but are not limited to) funding, exploration, commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals, cost estimates and other risk factors described from time to time in the Company's reports filed with the ASX. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid only at the date of issue of this document. Subject to any continuing obligations under applicable law and the ASX Listing Rules, or any other Listing Rules or Financial Regulators’ rules, the Company, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to publicly update or revise any information or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement. Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) "believe," "understand", "estimate," "anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," "intend," “projects”, "is designed to," "with the intent," "potential," the negative of these words or such other variations thereon or comparable terminology or similar expressions or future may indicate a forward looking statement or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts.

Central Petroleum Limited ABN 72 083 254 308. Level 32, 400 George Street, Brisbane, QLD 4000, Australia PO Box 12214, George Street, QLD 4003, Australia

Media Enquiries Martin Debelle at Citadel-MAGNUS T: +61 (0)2 8234 0100 M: +61 (0)409 911 189

T: +61 (0)7 3181 3800 F: +61 (0)7 3181 3855 info@centralpetroleum.com.au www.centralpetroleum.com.au