Central European Petroleum Notes Drilling Activities in Germany

Central European Petroleum updated operations on the Barth-11 well located in the German state of Mecklenberg-Vorpommern.

The Barth-11 exploration well has drilled over 3,400 meters of hole to date and continues to drill a horizontal section within the targeted Zechstein Stassfurt carbonate formation. To date, approximately 530 meters of the formation has been horizontally drilled and the presence of hydrocarbons in the reservoir has been confirmed. Upon entering the target formation, continuous shows of C1 (methane) - C5 (pentane), suggestive of an oil charged system, have been detected in the mud logs with gas readings of up to 2800 units. Measurements while drilling and drill cuttings analysis have also revealed that, in addition to natural fractures, a portion of the reservoir has porosity values above pre-drill expectations.

CEP is encouraged by these early drilling results, however, at this time it is too early to determine whether or not a commercial oil and gas reservoir has been found. Once drilling is completed in early June, a well testing unit is planned to be brought to determine potential commerciality of the reservoir. While the results to date are positive, much more time and investment will be required before the significance of the Barth-11 findings can be fully understood.