Central Petroleum delays drilling for route approval

South Perth-based oil and gas explorer Central Petroleum Ltd has announced another delay on the commencement of drilling at its Blamore and Avalon sites, citing difficulty in securing approval for the construction of an access route to the site.

The company said in an announcement it had experienced difficulty in negotiating with Aboriginal representative body the Central Land Council for the route, as well as the pursuit of additional seismic studies.

Central Petroleum has sought the assistance of the Federal government in resolving the matter.

The company announced a net loss of $1.3 million in September last year, after raising $10 million in its initial public offer.

The full text of a company announcement is pasted below

Although the necessary sacred site clearances for the Blamore and Avalon drilling locations in the granted Exploration Permit EP 93 have been successfully completed, the Company has experienced difficulties negotiating with the Central Land Council (CLC) for a cost effective and all weather access route to EP 93 to drill Blamore and for Avalon and to conduct additional seismic studies over other prospects in the same permit such as Guinevere, Vivienne and Madigan.

Central has reluctantly sought the assistance of the Federal Minister in resolving the matter and is awaiting his response which is expected shortly. The Company is acutely aware that a large number of options issued during the Initial Public Offering will expire on 30 June 2007 and is taking all possible steps to resolve the road access issue which was originally raised with the CLC early in 2006.