Continental Energy Receives Court Approval to Close Tungkal Interest Acquisition

DALLAS, Oct. 24 /PRNewswire-FirstCall/ -- Continental Energy Corporation (OTC Bulletin Board: CPPXF) today announced that, further to its press release of August 5, 2008, it has received court approval to conclude and close its acquisition of a 30% participating interest in the Tungkal PSC.

The Alberta Court of Queen's Bench, the superior court in the province of Alberta, Canada, has granted an order authorizing and directing Ernst & Young Inc., the court-appointed receiver-manager (the "Receiver") over all of the property of insolvent Fuel-X International Inc. to conclude the sale of a 30% interest in the Tungkal PSC, onshore Sumatra, Indonesia, to Continental under the terms of an existing purchase and sale agreement between the Receiver and Continental.

The deal is now scheduled to close upon the approval and registration of the deed of assignment by Indonesian authorities, anticipated next month, of the Tungkal PSC interest from Fuel-X Tungkal Ltd. to Continental's newly formed and wholly owned subsidiary Continental Energy (Tungkal) Pte. Ltd.

Continental earlier paid a cash deposit of $1,500,000 and at closing Continental shall pay an additional $13,500,000 cash, net of oil production income since the June 1, 2008 effective date of sale, plus issue 12,320,000 newly created Series-A preferred shares each having face and conversion value $1.00.

    On behalf of the Company,
    Richard L. McAdoo
    President & CEO

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 .

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