The Perth-based company said it had signed a binding letter of intent with Hunt Energy and Mineral Company to use Hunt Rig 2 in its 2008 drilling program, timed to begin at the end of the Northern Territory wet season.

Under the deal, Rig 2 will be available between March 1 and April 30 for Central to drill at least two conventional exploration wells.

Subject to shareholder approval and drilling results, Central has an option to drill up to five more conventional wells and three coal seam methane wells.

If all wells go ahead, the expanded conventional program would comprise Blamore-1, Simpson-1 and Johnstone-1, which are all targeting oil, along with Ooraminna-1 and Waterhouse-3, targeting natural gas, while Mt Kitty-1 and Magee-1 are looking for gas, condensate and helium.

The Magee-1 and Johnstone-1 wells are subject to additional pre-drilling seismic, while the Waterhouse-3 and Magee-1 wells would only go ahead if results are encouraging from Ooraminna-1 and Mt Kitty-1.

Altogether, the conventional wells are targeting a total of 300 million barrels of oil, 3.4 trillion cubic feet of gas and 100Bcf of helium. The CSM exploration program is targeting more than 70Tcf of gas.

Hunt Rig 2 is drilling Ballaparudda 1 for Beach Petroleum in the Cooper Basin and in the past 18 months has drilled 25 wells – 19 for Beach Petroleum including the successful Keawarra, Parsons, Callawonga and Maracoola discovery wells, four for Bow Energy and two for Inland Oil.