Continental-GeoPetro Accelerates 2007 Bengara-II Block Drilling Program

Continental Energy Corporation reported that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. has revised and accelerated its 2007 drilling program for the Bengara-II Block, onshore East Kalimantan, Indonesia.

A second drilling rig contracted by the company has arrived in the Bengara-II Block last week and will spud the second well of the six well program on the Bengara-II Block later this month.

Drilling on the company's first 2007 Bengara-II Block well, the Seberaba- #1 wildcat, is nearing completion and once drilling is completed the drilling rig will be released and moved to spud the third well of the 2007 program. A workover rig has arrived on location and will be deployed on the Seberaba-#1 to conduct a planned extensive formation flow testing program.

A third rig is underway to the Bengara-II Block and is expected to arrive in September to expedite the completion of the 2007 drilling program.