Continental Energy Corporation is an oil and gas exploration company. The Company is an exploration stage, junior, resource company with a non-producing oil and gas exploration property located in Indonesia. During the fiscal year ended June 30, 2007 (fiscal 2007), in a letter agreement, dated September 29, 2006, the Company and GeoPetro Resources Company (GeoPetro) agreed to terminate in its entirety the Bengara-II joint operating agreement. These terminations coincided with the sale by Continental Energy Corporation and by GeoPetro of 70% of each of their respective shares of Bengara to CNPC (Hong Kong) Ltd. (CNPCHK). During fiscal 2007, the Company and GeoPetro each sold, pursuant to a share sale and purchase agreement dated September 29, 2006, a 70% portion of their respective shares of Continental-GeoPetro (Bengara-II) Ltd. (CGB2) to CNPCHK. The Company retained an 18% share of CGB2 and its Bengara-II Production Sharing Contract covering the Bengara-II Block property.(Source: 20-F)