Central Petroleum Limited · ASX:CTP
Central Petroleum — Investor Presentation (July 2016)
36 slides from Central Petroleum's investor presentation, Jul 21, 2016
Slide 1: Central Petroleum Limited
For personal use only Central Petroleum Limited Developing the Northern Territory. Serving Australia’s Gas Needs. ASX:CTP
Slide 2: Table of Contents
Table of Contents For personal use only Item Page Company Overview 3 Financial Information 8 Field Development & Appraisal 11 Program Exploration Program 20 Strong Gas Outlook 28 Contact 35 CTP: Developing Northern Australia.
Slide 3: Company Overview
For personal use only Company Overview
Slide 4: Central at a glance
Central at a glance For personal use only Central Petroleum Limited (“Central”) is an oil and gas explorer and producer with technical expertise over the on‐shore basins of Central Australia. Central’s Core Objectives: • Continue to develop technical excellence in Central Australia’s oil and gas bas
Slide 5: Central's Operations
Central’s Operations For personal use only • Vast exploration acreage and producing assets over the key oil and gas basins in Central Australia • Transitioned from explorer / oil producer into the NT’s largest on‐shore gas producer and only on‐shore producing gas field operator. Two major acquisitio
Slide 6: Employment Philosophy
Employment Philosophy For personal use only Our Way Affirmation Action Strategy 1. Family Values for Working Families Local residents to Alice Springs 2. Northern Territory for Northern Upskilling local residents Territorians 3. Traditional Values for Traditional Family Friendly Roster Owners
Slide 7: Why Should You Invest?
Why Should You Invest? For personal use only Mereenie Acquisition completed. Announcement of committed Northern Gas Pipeline (NGP), which will connect Central to East Coast markets. Reserve upgrade on 14th March 2016 240% increase P1 reserves 22% in P2 reserves 50% increase in 2C reserves ACCC relea
Slide 8: Financial Information
For personal use only Financial Information
Slide 9: Financially Positioned to Deliver
Financially Positioned to Deliver For personal use only Financials (ASX:CTP) Capital Structure 1 FY2014 FY2015 FY2016 $M $M $M REVENUE 3.7 10.3 23.9 MARKET CAP: ~$50M EBITDAX2 (8.5) (1.7) 1.2 SHARES ON ISSUE: 433.1M TOTAL ASSETS 85.7 86.7 151.1 STOCK PRICE (19Jul16): A$0.12 CASH 10.3 3.5 15.1
Slide 10: Revenues Timeline
Revenues Timeline For personal use only $70 Revenue potential based on existing uncontracted gas reserves. $60 $50 Mereenie Reserves Upgrade Revenues $m $40 5.2PJ pre‐paid gas sale Northern Gas Pipeline agreement with Announcement Macquarie Bank. $30 Acquisition of 50% of Mereenie Oil & Gas field fr
Slide 11: Field Development & Appraisal Program
For personal use only Field Development & Appraisal Program
Slide 12: Central Operated Gas Fields
Central Operated Gas Fields For personal use only Central’s Operates 3 Producing Fields: • Mereenie • Palm Valley • Dingo Current Reserves (Gross JV) * • 207 PJ of 2P • 234 PJ of 2C Production Capacity (Gross JV) • All Fields ~45 TJ/d • All Facilities ~65 TJ/d Appraisal program • Stairway/P1 to conv
Slide 13: Mereenie Development
Mereenie Development For personal use only Description • Large structural anticline, area >200 km2 • Gas accumulations with associated oil rim • Producible hydrocarbon column ~870 metres • 5 discovered zones; Stairway Sst and Pacoota Sst P1 to P4 Operated by Central in 50/50 JV with Santos • 66 well
Slide 14: Dingo Development
Dingo Development For personal use only History Recent development • 60 km south of Alice Springs • Laid ~40 km fibre‐spar pipe • Dingo wells 1 to 4 drilled 1981 through 1991 • Plant commissioned April 2015 • Gas flow rates from 1.58 MMcf/d up to 8 MMcf/d • Remotely operated • Retention Licence gran
Slide 15: Palm Valley Gas Field
Palm Valley Gas Field For personal use only History Description and upside • Discovered 1965, gas delivered to; • Area over 200 km2, hydrocarbon column ~400m Alice Springs from 1983 • Reservoir ‐ tight sands, naturally fractured Darwin from 1986 to 2012 • High flow rates ‐ peak field export rate
Slide 16: Mereenie Stairway Appraisal
Mereenie Stairway Appraisal Current For personal use only • Stairway zone has not been a producing zone at Mereenie Stairway production development • 3 wells completed in the Stairway sandstone from P1 target and P3 • Testing of WM15 show flowrates of 1.2‐1.5 MMcfd • Due to low Nitrogen content of t
Slide 17: Ooraminna Gas Field
Ooraminna Gas Field For personal use only Retention licences 3 & 4 • Ooraminna 1 and 2 flared gas • Pioneer Sandstone is naturally fractured • Crestal area is prognosed as more fractured, targeted for appraisal • A deeper target, intra‐Gillen carbonates has been identified by analogy • Dingo infrast
Slide 18: Development, Appraisal and Exploration
Development, Appraisal and Exploration Resources PJ 350 For personal use only 300 250 200 150 100 50 0 * PJ Mereenie Dingo Palm Valley Ooraminna Palm Valley Yeti Dingo Satelite Palm Valley 1200 West Area Deep 962 1000 800 712 600 * The Exploration 437 figures are not an 385 407 estimate, 400 evaluat
Slide 19: Assets to underpin a growth pathway
Assets to underpin a growth pathway For personal use only ✓ Existing Infrastructure + Operations ✓ Uncontracted Gas Reserves ✓ Surplus Production Capacity ✓ Reserves growth plan ✓ Near‐field defined Appraisal targets identified ✓ Significant exploration upside 19 CTP: Developing Northern Australia.
Slide 20: Exploration Program
For personal use only Program Exploration
Slide 21: Palm Valley Prospects
Palm Valley Prospects For personal use only Palm Valley Deep Palm Valley West • Production occurs from Stairway and Pacoota sands, which Production Licence are naturally fractured. • Current gas production at Palm Valley is facilitated by fractures, and previous drilling suggests there is a relation
Slide 22: Dingo Satellites
Dingo Satellites For personal use only Incremental Exploration • Surrounding satellite structures identified from seismic interpretation • Attractive targets for exploration and incremental development • Seismic acquisition is planned to firm up drilling locations • The area has the possibility of a
Slide 23: South Amadeus Basin
South Amadeus Basin For personal use only Large and underexplored Mt Kitty 1 • The JV comprising Santos and Central has acquired 1,587km 2D seismic Stage 1 and drilled Mt Kitty 1 • Play types include large structures where Heavitree Quartzite or Fractured Basement should be sealed by salt, with seco
Slide 24: Wiso Basin
Wiso Basin For personal use only Material Growth Opportunity • Total area 43,217km2 • Gas pipeline with 3rd party access • Analogous geology to Southern Georgina • Oil seeps in BMR stratigraphic wells • Conventional and unconventional plays Gravity & Magnetics background Exploration Program • Modell
Slide 25: Western Amadeus Basin
Western Amadeus Basin For personal use only Frontier conventional, unconventional Exploration with large upside • Larapinta system with proven source, reservoir, production history • Conventional targets amongst sparse seismic, and along recently defined structural trends • Attractive unconventional
Slide 26: Southern Georgina Basin
Southern Georgina Basin For personal use only Background • The Toko Syncline is sparsely explored, somewhat analogous to adjacent Dulcie syncline containing attractive source rocks, prolific oil shows • The Central and Total JV have acquired 974 km 2D seismic, drilled Gaudi 1 which cored and interse
Slide 27: Development, Appraisal and Exploration Program
Development, Appraisal and Exploration Program For personal use only •Development •Achieved through review of existing wells, static and dynamic modelling •2P reserves (Petajoules) •Mereenie, 123 2P 150 PJ target (gross JV) Stage 1 •Palm Valley, 24 2P •Dingo Field, 33 2P •Testing of un‐drained res
Slide 28: Strong Gas Outlook
For personal use only Strong Gas Outlook
Slide 29: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market For personal use only The ACCC released its Inquiry into the east coast gas market in April 2016: • Comprehensive and “fully informed” assessment of the east coast gas market • 12 month study with unprecedented access to confidential market information • K
Slide 30: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market For personal use only Sufficient gas is only available for existing domestic and LNG contracts Requires undeveloped supply to be brought to market (at risk from regulatory uncertainty and depressed energy markets generally). The east coast market is
Slide 31: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market For personal use only Marginal costs for CSG is increases from ~$3.70/GJ (Dec 2015) to ~$5.70/GJ when aggregate production reaches current 2P reserves of 43 000 PJ. Future reserve adds will have a significantly increased marginal cost 31 CTP: Developin
Slide 32: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market For personal use only Gas prices have increased in every state over the past five years Evidence obtained by the Inquiry generally supports these trends with recent delivered fixed gas prices above $10/GJ in Qld. These historical gas prices do not re
Slide 33: Northern Gas Pipeline
Northern Gas Pipeline For personal use only Jemena is constructing a 622km pipeline linking the NT to the east coast market at a cost of around $800 million A 12‐inch pipeline has been selected, initially capable of 90TJ/d (potential to increase capacity up to 160TJ/d with compression) Work ha
Slide 34: Looking Forward
Looking Forward For personal use only • 5 Appraisal targets Near‐Term • Mereenie Stairway Appraisal Reserve • Mereenie Tight Gas Growth • Mereenie P1, P3 • Mereenie Gas Cap (Appraisal): • Ooraminna Gas Field • New Gas Sales into the Northern Territory and East Coast AND… • Continued tightness and pr
Slide 35: Contact Us
© 2015. All rights reserved. Central Petroleum Limited | ABN 72 083 254 308 | centralpetroleum.com.au Contact Us For personal use only Richard Cottee Managing Director & CEO Ph: +61 (0) 7 3181 3800 | Fx: +61 (0) 7 3181 3855 Level 32, 400 George Street, Brisbane, Queensland 4000, Australia PO Box 122
Slide 36: Disclaimer
DISCLAIMER 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 Ltd (“Company”). This presentation does not attempt to produc
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