Indo Sichuan Wins Second Bengara-II Drilling Contract

Continental Energy Corporation states that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. ("CGB2") has awarded a second, turn-key, integrated drilling services contract to drill wells planned for 2007 on the 3,650 square kilometer (900,000 acre) Bengara-II Production Sharing Contract, onshore East Kalimantan, Indonesia.

Indonesian drilling contractor PT Indo Sichuan Petroleum was awarded the contract and will deploy a land-drilling rig capable of drilling to a depth of 3,000 meters (9,800 feet). Mobilization of the rig and equipment from Sumatra to the Bengara-II Block is underway, with arrival expected in July.

James D. Eger, Continental's CFO, said, "addition of the second rig will enable us to accelerate our exploration drilling program in Bengara-II and will also facilitate rapid appraisal of any discoveries we make. P.T. Indo Sichuan is doing a fine job for us on the Seberaba-1 well and it made sense to have them supply the second rig as well."