Shares in Central Petroleum are higher this morning after the company announced the discovery of coal intersections at a Northern Territory exploration permit.

The company said, in a letter to the Northern Territory Government, that the 100 metre thick coal intersections at its EP 93 permit could be commercialised through either a coal bed methane project or an underground coal gasification project.

The coal find is in the precinct of the Perdika Basin, located on the border between South Australia and the Northern Territory.

The announcement came after Central announced that joint venture partner Petroleum Exploration Australia had paid it $4.8 million in outstanding cash calls and interest relating to nine permits, including EP 93.

Central said it had recommended that the partners suspend drilling and seismic field operations until the end of the NT wet season.

Shares in the company were up 14.1 per cent, or 1.1 cents, to 8.9 cents at 11.01am.

Source: The West Australian, ANDREW HOBBS