Central Petroleum Limited · ASX:CTP
Central Petroleum — Investor Presentation (November 2012)
20 slides from Central Petroleum's investor presentation, Nov 23, 2012
Slide 1: Review & Outlook November 2012
For personal use only Review & Outlook November 2012
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is not intended for prospective investors and does not purport to provide all of the information an interested party may require in order to investigate the affairs of Central Petroleum. This presentation does not attempt to produce profit forecasts
Slide 3: Contents
Contents For personal use only Overview 3 Strategy Overview 8 Farm-out Agreements 9 Development Schedules 10 Funding 12 Valuation Observations 14 Appendix 17 Contact Details 19 2
Slide 4: Day Review: Deliverables on Plan
100 Day Review For personal use only Deliverables on Plan Central Petroleum Limited 12 month Share Price Performance July - New CEO and Board composition $0.25 August - Major disputes settled $0.20 September - A$150m Santos farm-out completed $0.15 November - US$190m Total S.A. farm-out comp
Slide 5: Company Transforming Farm-outs
Company Transforming Farm-outs For personal use only Potential commitment of around $300m by Santos and Total with free-carry for Central highlights the prospectivity of your company’s permits. + Australia’s leading on-shore oil and gas One of the six Super Major oil exploration and production compa
Slide 6: Central Petroleum Today
Central Petroleum Today For personal use only Central is positioned to become one of the leading emerging non-conventional energy plays in Australia. The next chapter in the development of Central will see intensive exploration over highly prospective ground and the intended transition of Central in
Slide 7: Asset Overview
Asset Overview For personal use only Central holds or has applications over some of the largest prospective exploration acreage in the developed world. The recent farm-out deals cover 17.4 m acres and are valued at up to $340m with up to $302m of free-carry for Central. Central balance payable in 20
Slide 8: Regional Infrastructure Overview
Regional Infrastructure Overview For personal use only Infrastructure Key to Oil and Gas Delivery Pipeline Infrastructure in Australia Valuations of developed US shale oil acreage range between $8,000 and $30,000 per acre because the delivery network is extensive and oil flows are predictable. Cen
Slide 9: Strategy Overview
Strategy Overview For personal use only Strategic Deliverables Central has five broad areas of focus 1. Progress joint ventures – Operate Total Southern Georgina JV – Optimise with Santos on EP115 2. Develop company owned prospects – Initially Surprise discovery – Reserve Certification, development
Slide 10: Farm-Out Details – Stage - Santos and Total
Farm-Out Details – Stage 1 - Santos and Total Two Major Farm-out Transactions Announced – Exploration Set to Commence For personal use only The scale and pricing of these transactions validate the prospectivity of Central’s leases. These transactions cover around 30% of the company’s acreage and bri
Slide 11: Company Development – Surprise
Company Development – Surprise For personal use only Develop Company Owned Prospects - Surprise Following a successful Extended Production Test and 3D seismic, Surprise is now classified as a Commercial discovery and is going through development analysis with development targeted for Q4 2013. The re
Slide 12: Work Schedule Overview
Work Schedule Overview For personal use only Intensive Work Program to Commence Central is preparing an intensive exploration program for its highly prospective Southern Georgina, Amadeus and Pedirka basins as well as development of the company’s own Surprise discovery. 2013 2014 Joint Venture Q1 Q2
Slide 13: Funding - Work Schedule
Funding - Work Schedule For personal use only Stage 1 Farm-out Work Commitments Significant exploration will be completed with minimal and deferred funding commitments from Central. All current oil and gas lease commitments paid by JV partners No Central farm-out funding required until mid-2014
Slide 14: Funding – 2013 Working Capital
Funding – 2013 Working Capital For personal use only Costs Down, Expense Coverage Up Central annualised overhead reduced by 40% Santos and Total arrangement contribute around $4.5m cash & cost coverage in next 12 months Calendar Year 2013 Working Capital Outlook Sufficient working capital to c
Slide 15: Valuation Comparisons
Valuation Comparisons For personal use only Strong Valuation Support $ EV / Net Acre - Aust Shale Companies with Farm-outs Central offers significant value relative to peers with an Enterprise Value of $4.85 per acre. $60 $ EV / Net Acre 70 Central has the largest acreage and the highest $50 Net Acr
Slide 16: Case Study – Buru Energy
Case Study – Buru Energy For personal use only Buru Energy is a good example of the benefits to shareholders that flow from good execution of farm-in strategy combined with exploration success. Buru Energy is currently trading at $48/ net CTP is trading at around $4.85/net acre or an acre or an ente
Slide 17: Large Discount to Target Prices
Large Discount to Target Prices For personal use only Central Petroleum Limited 12 month Share Price Performance $0.25 DJ Carmichael Price Target $0.43 No.1 High Conviction Pick $0.20 Patersons Price Target $0.38 $0.15 $0.10 $0.05 $0.00 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Sep 12 Nov 12 16
Slide 18: Appendix
For personal use only 17 Appendix
Slide 19: Asset Details – Underexplored and Highly Prospective
Asset Details – Underexplored and Highly Prospective Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only 18
Slide 20: Contact Details
Contact Details For personal use only 56-58 Jephson Street, Toowong, QLD 4066 Tel: +61 7 3181 3800 www.centralpetroleum.com.au 19
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