Continental Energy Corporation Announces Yapen Block 2003 Work Program Set.

Business Editors

LANGLEY, British Columbia--(BUSINESS WIRE)--Dec. 4, 2002

Continental Energy Corporation, "Continental", (OTCBB:CPPXF) announced that its Continental Energy Yapen Ltd. unit has finalized and presented its annual work program and budget for calendar year 2003 in the "Yapen Block" production sharing contract ("PSC") area offshore Irian Jaya, Indonesia to BPMIGAS, the Oil & Gas Concession Regulating Body of the Republic of Indonesia.

The overall objectives of the 2003 annual work program are 1.) complete processing of 2D-HiRes seismic data acquired during 2001; 2.) reinterpret seismic over the entire block incorporating newly acquired seismic data from 2001 with older vintage data, and 3.) drill one exploratory well on the most highly promising prospect identified at the time.

Expenditures for one exploratory well are budgeted to commence in 4th quarter 2003. The actual spud date of the well is dependent upon favorable weather conditions in the Yapen Block, drill-ship or semi-submersible rig availability and the interpretation results of the newly acquired seismic. Total well cost is estimated to be US$ 7,000,000 completed and tested and US$ 6,250,000 dry hole. Due to the remote location of the drilling site and need for specialized drilling equipment considerable advance planning of this well is required once the actual location is determined based on 2003 seismic interpretation work.

Continental's 60% owned subsidiary Continental Energy Yapen Ltd. owns a 10% carried interest in the Yapen Block after its recent farm out of 90% interest and the block operatorship to PT Exspan Indonesia. See Continental's Press Release dated November 5, 2002.

In a related development, Continental Energy Yapen Ltd. has received approval from BPMIGAS of its application to BPMIGAS to postpone a mandatory relinquishment of 25% of the area of the 9,500 square kilometer Yapen Block concession area from end September 2002 until end of March 2003.

Continental Energy is a small but aggressive oil and gas exploration company focusing its efforts on discovering major reserves in Indonesia where it owns interest in production sharing contracts for two high potential exploration properties, the Yapen and Bengara-II Blocks, covering 3 million acres and a third development property for exploitation of the Bangkudulis Oil Field.

On behalf of the Board,

"Original Signed by Gary R. Schell"

Gary R. Schell, Director

No securities regulatory authority has either approved or disapproved the contents of this news release.

Certain matters discussed within this press release are 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, 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.

For more info please contact Craig Doctor, Investor Relations, 604/278-4656 or Advisors, Alex Tassos & Associates 760/737-7000 Or Gary Schell, Director, at the Company's Headquarters, 21795 64th Avenue, Langley, BC, V2Y-2N, BC, 604/532-6066.