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Central Petroleum to re-enter Surprise-1 well in Amadeus Basin this weekend

Central Petroleum (ASX: CTP) set to commence re-entry of the Surprise-1 well in the Amadeus Basin, onshore central Australia, by this weekend.

The re-entry is the first of a liquids-focussed drilling program across the company’s acreage position, which will include the Madigan or Simpson East and Mt Kitty prospects.

Central plans to complete drilling and testing of Surprise-1 by mid-December 2011.

The company initially planned to start the drilling program earlier, however this was delayed by temporary road closures caused by localised rain.

Previously recorded estimates, confirmed by independent RPS Energy, subject to confirmation of visual hydrocarbon saturation, indicate that one 9 metre zone in the already drilled section of Surprise-1 has potential to flow at 500-1,000 barrels per day.

There are other potential direct hydrocarbon indicators throughout the main target zone, the Pacoota Sandstone, although this has not yet been drilled.

Capital raisings

In September, Central Petroleum raised $5 million through the placement of 91 million shares at $0.55 each to fund the drilling program and provide working capital.

The company also has a share purchase plan underway to raise a further $5.5 million, fully underwritten by Patersons Securities. The share purchase plan is due to close on November 28.

Central has plans to list on the Toronto Stock Exchange, to align it with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.