DALLAS, Oct. 27, 2005 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that it and GeoPetro Resources Company have sold their interest in Continental - GeoPetro (Yapen) Ltd., holder of an interest in the Yapen Production Sharing Contract in West Papua, Indonesia, to Nations Energy Company Ltd. of Calgary, Alberta, Canada, for $6,000,000 in cash.
Continental and GeoPetro are also partners in the Bengara-II Production Sharing Contract area in East Kalimantan, Indonesia, and have agreed to apply most of the funds from the Yapen sale to exploration and development drilling in Bengara-II. Continental owns 60% of the Bengara-II PSC.
Proceeds to Continental were $3,600,000. No broker's or finder's fees were incurred on this transaction.
Mr. Richard L. McAdoo, Continental's chairman and president said, "We are pleased that this transaction has gone so smoothly, and wish Nations well in their exploration of the Yapen Block. The funds received will allow us to proceed with our planned drilling in the Bengara-II Block, where we have four exploration prospects already approved for drilling in the oil prone southern part of the block, and a plan of development in progress for the Makapan Gas Field in the northern part of the block."
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 .
About Nations Energy Company:
Nations Energy Company is a privately owned Alberta oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves internationally.
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.