Continental shares for debt settlement closed

Continental Energy Corporation ("Continental"): is pleased to report that the shares for debt settlement announced on June 23, 2000 has closed. A total of 511,700 shares were issued to settle debt of approximately $358,209. The issued shares are restricted from trading until December 2, 2000.

Continental is a small but aggressive oil and gas exploration company focussing its efforts on discovering major reserves in Indonesia. The Company owns a 60% interest and operates two high potential exploration properties under Production Sharing Contracts covering some 3.7 million acres in Indonesia, the onshore Bengara-II Block and the offshore Yapen Block.

ON BEHALF OF THE BOARD OF DIRECTORS OF CONTINENTAL ENERGY CORPORATION

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

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

For more information please contact: Mr. Gary R. Schell or Mr. Craig Doctor at: Suite 1760, One Bentall Centre, 505 Burrard Street, Vancouver, BC V7X 1M6 Phone: (604) 687-3434 or Toll Free 1-888-556-3213 Fax: (604) 687-3073 Web Site: www.continentalenergy.com E-Mail: cenergy@istar.ca (*)