DALLAS, Nov. 30, 2005 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that Continental and its partner, GeoPetro Resources Company, have formed CG Xploration Inc. to pursue new venture oil and gas exploration and production projects and obtain new exploration concessions in Indonesia. CG Xploration Inc. is incorporated in Delaware and is owned 50/50 by Continental and GeoPetro. Continental's President, Mr. Richard L. McAdoo, has been named "President & CXO" of CG Xploration Inc. and will lead the new company's exploration and new ventures development activities.
Mr. Richard L. McAdoo, said of the new company: "The recent sale of our Yapen Block (Press Release: October 27, 2005) provides Continental and GeoPetro with sufficient funds to take advantage of several promising new venture opportunities in Indonesia during 2006. CG Xploration Inc. will actively pursue, develop and acquire new venture opportunities on behalf of Continental and GeoPetro. We are already evaluating production acquisition opportunities and plan to participate in several undeveloped field exploitation opportunities and older field rehabilitation opportunities which state oil company Pertamina has announced for tender in 2006."
"We have also had our eyes on several promising new exploration concessions for some time and plan to acquire rights to explore them in 2006. We are particularly fond of the East Kalimantan area of Indonesia and consider it our core area of interest. East Kalimantan has been producing oil since 1899 and several new elephant size oil, gas and condensate discoveries have been made there in the past three years by Unocal and ENI among others. We have developed considerable technical expertise in East Kalimantan due to our activities there in the Bengara-II Block over the past eight years and have a strong competitive advantage with our understanding of the oil and gas rich geology of this area."
Mr. James D. Eger, Continental's CFO said, "The new and improved financial and fiscal production sharing terms and incentives available to oil and gas exploration companies in Indonesia continue to make Indonesia a very attractive place to explore for and produce hydrocarbons. Our long experience in Indonesia puts us in a very favorable position to strike the best deals possible on new concessions."
About Continental Energy Corporation
Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia. For further information, please visit our web site at www.continentalenergy.com.
No securities regulatory authority has either approved or disapproved the contents of this news release.
Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the US Securities Exchange Commission.