Continental Energy Accelerates 2007 Bengara-II Block Drilling

DALLAS, Aug. 23 /PRNewswire-FirstCall/ -- Continental Energy Corporation (OTC Bulletin Board: CPPXF) today announced that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. has revised and accelerated its 2007 drilling program for the Bengara-II Block, onshore East Kalimantan, Indonesia.

The revised plan filed with Indonesian authorities increases the drilling program for 2007 from a total of four new exploration wells to a total of six new wells, two of which are classified as wildcat exploration wells and four of which are classified as appraisal wells.

A second drilling rig contracted by the company has arrived in the Bengara-II Block last week and will spud the second well of the six well program on the Bengara-II Block later this month.

Drilling on the company's first 2007 Bengara-II Block well, the Seberaba- #1 wildcat, is nearing completion and once drilling is completed the drilling rig will be released and moved to spud the third well of the 2007 program. A workover rig has arrived on location and will be deployed on the Seberaba-#1 to conduct a planned extensive formation flow testing program.

A third rig is underway to the Bengara-II Block and is expected to arrive in September to expedite the completion of the 2007 drilling program.

About Continental Energy Corporation:

Continental Energy Corporation is an international oil and gas exploration company, focused entirely on making major oil or gas discoveries 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.

SOURCE Continental Energy Corporation