Continental Energy Corporation Corporation Announces Yapen Block Farmout Closed.

Business Editors

JAKARTA, Indonesia--(BUSINESS WIRE)--Nov. 27, 2002

Continental Energy Corporation, "Continental", (OTCBB:CPPXF) announced the closing of its farm-out to PT Exspan Yapen of a 90% share of the "Yapen Block" production sharing contract ("PSC") area offshore Irian Jaya, Indonesia, as per prior press release dated November 5, 2002.

Two conditions were need to effect closing. PT Exspan Yapen has now made required cash payments under the farm out agreement of approximately US$ 570,000 and a deed of assignment has been filed with concession regulatory authorities.

At a press conference following the farm-out signing ceremony, Mr. Hilmi Panigoro, President/CEO of PT Exspan Yapen's parent company, PT Medco Energi Internasional Tbk, (JSX: MEDC) said "Our acquisition of this interest in the Yapen Block is a part of our strategic objective of becoming a major player in the booming Asian region gas market. The Yapen Block offers major potential natural gas resources according to our preliminary geological assessment. Another major factor in this acquisition is the fact that the Yapen PSC is a "frontier terms" PSC under which the production sharing terms with the government are substantially more favorable to us and Continental than those that would be afforded us under a "standard terms" PSC. In Yapen Block we get a 62.5% share of crude oil and a 71.4% share of all natural gas we may produce while under "standard terms" PSC's common in other areas of Indonesia we get only a 26.7% share of oil and 37.5% share of gas with the balance going to the government. Yapen Block offers us a significant financial incentive which provides us with real enthusiasm to fast track drilling and exploitation of this highly prospective area".

Continental's President, Mr. Richard L. McAdoo, said, "We are most pleased and proud to have Indonesia's largest local oil company and its lowest cost producer join us in the exploration of the Yapen Block. We are confident that the experience and resources the Medco Group brings to this joint venture will facilitate early drilling and fast-track commercial development."

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 two high potential exploration properties covering 3 million acres and a third development property for exploitation of the Bangkudulis Oil Field.

On behalf of the Board,

"Original Signed by GaryR. Schell"

Gary R. Schell, Director