Slide 1: Closing the Gap (Gas Acceleration Programme)
For personal use only CLOSING THE GAP (Gas Acceleration Programme) Mitigating the Australian Energy Crisis “Never let a good crisis go to waste” – Churchill
Slide 2: Company Snapshot
COMPANY SNAPSHOT Central Petroleum Limited is an Australian oil and gas explorer and conventional producer with a For personal use only focus on supplying the domestic gas market Share price and related metrics1 Licence areas ASX listing code CTP Area Location Ownership Share price $0.125 Production
Slide 3: Project Locations
PROJECT LOCATIONS Mereenie 50% For personal use only Palm Valley 100% Ooraminna 100% Dingo 100% 3
Slide 4: The Story So Far
THE STORY SO FAR Preparatory work on Gas Acceleration Programme (“GAP”) aimed at a low-risk cost-effective drilling For personal use only programme with the objective of TRIPLING our potential sales gas available for the east coast Oct March Aug April June Sept Nov 2013 2014 2014 2015 2015 2015 2015
Slide 5: The Story So Far (cont.)
THE STORY SO FAR (CONT.) Closing the GAP still to come… For personal use only April June Aug Dec Jan April July 2016 2016 2016 2016 2017 2017 2017 Closing the GAP ACCC Inquiry Gas Sale and Pre- COAG Commission Vertigan Macquarie EDL contract Update released purchase Vertigan recommends acquires 50%
Slide 6: Closing the GAP - The NGP Is Being Built
CLOSING THE GAP - THE NGP IS BEING BUILT For personal use only • Jemena is constructing and is contractually committed to build a 622km pipeline linking the NT to the east coast market at a cost of around $800M • A 12-inch pipeline has been selected, initially capable of 90TJ/d (potential to increas
Slide 7: Operational Update
OPERATIONAL UPDATE Central’s Gas Acceleration Programme is ‘drill-ready’ to close the GAP in gas supply through NGP in For personal use only 2018 Consideration Update Stairway Testing • Continued through 2017: programme − West Mereenie 15 free flowing gas from Stairway at sustainable rates with a lo
Slide 8: Commercial & Strategic Update
COMMERCIAL & STRATEGIC UPDATE The GAP is based on brownfield economics using existing infrastructure enabling “success” to be For personal use only sold and gas delivered Consideration Update Reserves and cash • Targeted Reserves 446 PJ (Most Likely and Existing) • Cash balance at the end of the qua
Slide 9: Reserves Potential
RESERVES POTENTIAL • Present 2P Reserves are 125.9 PJ and, under GAP, have identified three drill-ready targets where known gas For personal use only exists in the zone. These targets can be appraised by a $25 million four horizontal well programme with no intention of fraccing. No. of Wells Gross P
Slide 10: Mereenie Stairway
1 MEREENIE STAIRWAY For personal use only Contingent Resource (SoA) 2C Gross (PJ) 120 Net (PJ) 60 Central Petroleum volume assessment of the Stairway Target Low Most Likely High Mereenie Stairway volumes (145 PJ) are based on Best Estimate EUR Gross (PJ) 110 145 186 updated Special Core Analysis and
Slide 11: Palm Valley Shallow
2 PALM VALLEY SHALLOW For personal use only Reserves/Resources (SoA)* 1P 2P 2C Sales Gas (PJ) 17 22 30 * Please note that the Reserves/Resources (SoA) volumes are specifically related to contracted Sales Gas volume and will be a sub-set of EUR potential for Palm Valley. Palm Valley Low Most Likely H
Slide 12: Ooraminna
3 OORAMINNA For personal use only Ooraminna Low Most Likely High EUR (PJ) (SoA) 89 120 158 12
Slide 13: Reserves and Resources
RESERVES AND RESOURCES1 1 Mereenie Stairway2 Low Most Likely High For personal use only Best Estimate EUR Gross (PJ) 110 145 186 Best Estimate EUR Net (PJ) 55 73 92.5 2 Palm Valley Shallow3 Low Most Likely High Best Estimate EUR (PJ) 83 127 165 3 Ooraminna Low Most Likely High EUR (PJ) 89 120 158 TO
Slide 14: Most Likely Reserves
MOST LIKELY RESERVES • The combined total Most Likely1 volume as highlighted are: For personal use only GAP 500 400 300 PJ 200 100 0 Gross Reserves Non-Central Reserves Net Reserves Existing Reserves Total Reserves 392 PJ (72 PJ) 320 PJ +126 PJ 446 PJ • There remains a risk that any or all three pro
Slide 15: The Cashflow Gap Closed - Receipts v Payments
THE CASHFLOW GAP CLOSED For personal use only Receipts v Payments by Quarter 12,000 Notes: Cash flow positive 10,000 in Q4 FY17 1. Annual take-or-pay receipts are assumed spread over the contract 8,000 year v lump sum receipt in Q3 FY $ '000 6,000 2. Capex excludes items funded by debt 4,000 3. Debt
Slide 16: The Cashflow Gap Closed - Cash Flow by Quarter
THE CASHFLOW GAP CLOSED For personal use only Notes: Cash Flow by Quarter 1. Annual take-or-pay receipts 12,000 are assumed spread over the contract year v lump sum Cash flow positive receipt in Q3 FY 10,000 in Q4 FY17 2. Capex excludes items funded by debt 3. Debt servicing includes 8,000 Principal
Slide 17: Milestones by Calendar Year End
MILESTONES BY CALENDAR YEAR END For personal use only 1 TEG unit installed – part of Dingo upgrade 2 Mereenie marketing agreements in place 3 Funding sources secured 4 FOUR well drilling programme of known gas zones commenced 5 New Directors appointed to augment existing Board 17
Slide 18: Keep Calm and Mind the Gap
For personal use only KEEP CALM AND MIND THE GAP
Slide 19: Disclaimer
DISCLAIMER General Disclaimer and explanation of terms: For personal use only 1. 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 Limited (“Compa