Second Bengara-II Drilling Contract Awarded

DALLAS, June 27 /PRNewswire-FirstCall/ -- Continental Energy Corporation (OTC Bulletin Board: CPPXF) today announced that its 18% owned Indonesian subsidiary Continental-GeoPetro (Bengara-II) Ltd. ("CGB2") has awarded a second, turn-key, integrated drilling services contract to drill wells planned for 2007 on the 3,650 square kilometer (900,000 acre) Bengara-II Production Sharing Contract, onshore East Kalimantan, Indonesia.

Indonesian drilling contractor PT Indo Sichuan Petroleum was awarded the contract and will deploy a land drilling rig capable of drilling to a depth of 3,000 meters (9,800 feet). Mobilization of the rig and equipment from Sumatra to the Bengara-II Block is underway, with arrival expected in July.

James D. Eger, Continental's CFO, said, "addition of the second rig will enable us to accelerate our exploration drilling program in Bengara-II and will also facilitate rapid appraisal of any discoveries we make. P.T. Indo Sichuan is doing a fine job for us on the Seberaba-1 well and it made sense to have them supply the second rig as well."

CGB2's four well 2007 exploration drilling program is fully funded, as detailed in Continental's earlier press release dated October 11, 2006.

About Continental Energy Corporation:

Continental Energy Corporation is an independent 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 http://www.continentalenergy.com.

SOURCE Continental Energy Corporation