Central Australia

Strategic interest in Central Petroleum Ltd

Advent has acquired a strategic shareholding in Australian onshore hydrocarbon explorer Central Petroleum (ASX: CTP). Central Petroleum Ltd (Central) is one of Australia's largest net onshore acreage holders with permits spanning more than 260,000 square kilometres. Since 1998, Central has undertaken a highly focused strategy to secure acreage within the areas it considers to be the most prospective for oil and gas within central Australia. Central believes that the oil and gas potential of central Australia has been significantly overlooked and the area remains one of the true under-explored and under-developed proven petroleum provinces within Australia.

From ASX: CTP announcement 18 May 2009:

Central Petroleum Limited, (CTP) plans a robust exploration programme commencing in the second half of 2009 to build upon the successes of its 2008 programme which resulted in the publication of an independent report that has estimated a coal "Exploration Target" potential of between 0.6-1.3 trillion tonnes above 1,000m (refer ASX:CTP announcement 19 February 2009) in CTP's operated areas in the Pedirka Basin. Drilling in 2008 resulted in net Permian coal in two wells over 50 km apart in excess of 100m with some individual seams approaching 40m in thickness; these results have obviously positive implications for Coal Seam Gas (CSG) and Underground Coal Gasification (UCG) exploration. A second result of the 2008 programme was the reporting of substantial residual oil columns in both the Blamore 1 and Simpson 1 wells, providing a sound rationale for further oil exploration in the area.

2007 and 2008 seismic acquisition, processing and analysis has resulted in the better definition of four substantial conventionally reservoired targets in the Amadeus Basin, the 300 MMbbl Johnstone oil prospect in EP115, the 2 TCFG Ooraminna gas prospect in EP82 (which has flowed gas to surface in 1963), the 0.8 TCFG Magee prospect in EP82 (which has flowed gas, condensate and Helium to surface in 1992 and has 15 BCFG Helium potential) and the giant 3 TCFG Mt Kitty prospect of over 400 km2 area which has up to 185 BCFG Helium potential.

Conditional upon Joint Venture approval at OPCOM meetings planned by the end of June 2009 as well as various other contingencies inclusive of funding, crews and equipment, CTP plans the following programme for 2009 to commence as soon as possible but probably by late August, early September 2009:

1. Three to four conventional wells (Amadeus Basin):

2. Five to ten fully cored CSG wells (Pedirka Basin)

• Five fully cored CSG wells- a further five fully cored CSG wells as an option or follow up fraccing and flow testing
• Flow testing of CBM93001, drilled in the 2008 campaign

3. 2D seismic in the Amadeus and Pedirka Basins

• 1,250 line km
• Targeting both regional and prospect definition targets for oil, gas, condensate and helium

4. Cost

• $22-44 million with c. 40-60% anticipated to be provided by JV partners
• $22 million anticipated costs of three conventional wells plus five fully cored CSG wells with CTP's anticipated contribution being c.$14 million
• $44 million anticipated costs of four conventional wells, 10 fully cored CSG wells and 1,250 km of 2D seismic.

The Company has built up considerable operational experience in central Australia and anticipates that various elements of the exploration programme proposed can be carried out over the wet season. In particular, a light weight drilling rig proposed to be used in the Pedirka Basin for CSG appraisal in the Simpson Desert area, (annual average rainfall of less than 150mm or 6 inches) has logistic requirements significantly less demanding than a conventional oil rig. Seismic exploration early in 2008 was interrupted for only three days during record breaking rains in the area around the Ooraminna prospect.



Map showing Advent investee Central Petroleum's interests, courtesy Central Petroleum Ltd.