The allotment of the ordinary fully paid shares to option holders is part of the new issue announced last month of about 39.5 million shares.

Underwriter Martin Place Securities told Central it would be able to complete the underwriting of the unexercised June 30, 2007 options and to place about 5.5 million additional ordinary shares on the same terms.

This would raise an additional $1.1 million before costs, bringing total funds raised from the underwritten options conversion and placement to $9 million before costs, said Central.

“We are extremely encouraged by the overwhelming interest in our shares. The extra $1.1 million is a big boost to our balance sheet and our sentiments, as we prepare to spud our first well later this year,” said Central managing director John Heugh.

Central’s first three-well program is planned to target the Mount Kitty prospect, which it says hosts an estimated 1.7 trillion cubic feet of wet gas and 105 billion cubic feet of helium in “high” P10 prospective recoverable resources, according to independent geological reports.

The announcement follows last Friday’s $1.25 million investment in Central by MEC Resources, comprising 6.25 million shares at 20c each.

MEC also will be offered one-for-two options with a subscription price of 2.5 cents, an exercise price of $0.25 and an expiry date of 2010.

This followed the recent memorandum of understanding between MEC investee Advent Energy and Central Petroleum regarding a major farmout deal that will include all 18 of Central’s permits and permit applications once they are granted.

The terms of the MOU include the drilling of up to 54 wells and $54 million of seismic at the promoted 40% level, with Advent earning a 20% interest in all petroleum pools drilled via the farmout works and a 20% interest in the underlying permits.

Central is exploring for conventional oil, gas and helium targets, as well as coal bed methane in the Pedirka basin – the first onshore exploration wells drilled in the Northern Territory in 15 years.

Independent reports cite prospective recoverable resources of 34-70Tcf of CSM in Central’s Pedirka basin permits.

In the event of a major gas discovery, Central plans to utilise any proven reserves as feedstock for a gas-to-liquids plant to produce ultra-clean diesel, jet fuel and naphtha for the domestic and overseas markets.

To date, only 37 exploration wells have been drilled in the Amadeus basin, which yielded three discoveries totalling 150 million barrels of oil equivalent.

According to the Northern Territory Geological Survey department, the Amadeus basin alone could host up to 35Tcf of gas or 6 billion barrels of oil equivalent in oil and gas reserves.