Continental Energy Corp. Announces $5,144,750 Private Placement.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--May 23, 2000

Continental Energy Corporation ("Continental") (OTCBB:CPPXF)(CDNX:KK) (FRANFURT:CNZ) is pleased to announce that it has made arrangements for a non-brokered private placement of 7,915,000 units at $0.65 per unit for a total cash consideration of $5,144,750 (or US $3,570,000).

Each unit consists of one common share and one common share purchase warrant valid for two years at an exercise price of $0.65 per share the first year and $0.75 per share the second year. The private placement is subject to acceptance by the Canadian Venture Exchange. No brokerage or finders fees were incurred in the placement.

The Company intends to apply $1,500,000 of the placement proceeds to pay off dept and apply $250,000 to corporate administrative expenses for the next year. The remaining proceeds are allocated to the Company's 60% share of its joint venture exploration work commitments on the Company's Bengara and Yapen properties or possibly for production purchase opportunities if a suitable opportunity arises.

Continental is a small but aggressive oil and gas exploration company focussing its efforts on discovering major reserves in Indonesia. Through its affiliates the Company operates two high potential exploration properties under Production Sharing Contracts ("PSCs") with Pertamina, the Indonesian national oil company, covering some 3.7 million acres in Indonesia, the onshore Bengara-II Block and the offshore Yapen Block. The Company holds a 60% working interest in both blocks in a joint venture with 40% partner GeoPetro Resources Company.

On behalf of the board of directors of Continental Energy Corporation

(signed) Gary R. Schell, P. Eng. Director

The Canadian Venture Exchange has neither approved nor disapproved the contents of this release.

For more information please contact: Gary R. Schell or Craig Doctor at: Suite 1760, One Bentall Centre, 505 Burrard Street, Vancouver BC V7X 1M6 Phone: [phone] or Toll Free 888/556-3213 Fax: [phone] Web Site: www.continentalenergy.com Email: [e-mail]