DALLAS, Oct. 11, 2006 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that CNPCHK (Indonesia) Limited, ("CNPC") has funded CNPC's earning obligation in accordance with provisions of the recent sale of interest by the Company in its Continental-GeoPetro (Bengara-II) Ltd. ("CGB2") subsidiary to CNPC as per the Company's October 2, 2006 press release.
CNPC has placed the entire US$18,700,000 earning obligation into a CGB2 account jointly controlled by CNPC and Continental. The funds are to be used exclusively to pay for 2006 and 2007 exploration drilling in the 3,649 square kilometer Bengara-II Production Sharing Contract ("PSC") area in East Kalimantan, Indonesia.
CGB2 has four exploration wells planned, permitted and approved by Indonesian oil and gas regulatory authorities for drilling in 2006 and 2007. The company is now finalizing plans for conducting the drilling program and preparations are being made to import a drilling rig from China to conduct the drilling.
About Continental Energy Corporation:
Continental Energy Corporation is an independent oil and gas exploration company focused entirely on making a major oil or gas discovery in Indonesia. For further information, please visit our web site at www.continentalenergy.com.
No securities regulatory authority has either approved or disapproved the contents of this news release. Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the U.S. Securities Exchange Commission.