Central Petroleum Limited · ASX:CTP
Central Petroleum — Investor Presentation (March 2012)
36 slides from Central Petroleum's investor presentation, Mar 8, 2012
Slide 1: ASX Announcement & Media Release: Updated Company Presentation
ASX ANNOUNCEMENT & MEDIA RELEASE ASX CODE: CTP 8 March 2012 TO: The Manager, Company Announcements ASX Limited CONTACT: John Heugh +61 8 9474 1444 UPDATED COMPANY PRESENTATION Central Petroleum Limited (ASX:CTP) (“Central”) provides a copy of its latest company presentation, as attached. For further
Slide 2: General IR Presentation: Transition to Production
General IR Presentation Transition to Production‐ Surprise‐1 REH Horizontal discovery well c.400 BOPD EPT & 3D Seismic Planned
Slide 3: Disclaimer
Disclaimer 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 for Central Petroleum
Slide 4: At a glance
At a glance- f central petroleum yaa. www.centralpetroleum.com.au | Vv 250,000km? (60 million acres) petroleum ground Surprise - 1 REH 20,000km? (5 million acres) coal and mineral ground Horizontal Discovery c.400 BOPD Unconventional prospective recoverable (P50) 5 Bn bbls, 42 TCFG Light Sweet Crude
Slide 5: Surprise-1 REH Update
Surprise-1 REH Update • 380 BOPD initial flow testing • Light sweet crude, API 40 sulphur 0.098% • First onshore horizontal well in Australia to flow oil to surface • First oil flow to surface central Australia for 50 years • 230m lateral, no fraccing • Seismic and drilling appraisal planned • Well
Slide 6: Additional potential Surprise area
Additional potential Surprise area Preliminaryobservations/conclusions, not to be relied upon, subject to review as more data comes to hand, exploration and development plans may change at short notice. See disclaimer concerning forward statements p1 of this presentation. 4
Slide 7: Possible Volumetrics Surprise and Proximal Structures
Possible Volumetrics Surprise and Proximal Structures Case 3 All values are OIIP Case 1 •Might be one large structure MMbbls •Assumed parameters from well •Lowest possible contour (Rounded) Case 2 •Possibly truncates on salt feature Case 1 Case 2 •Parameters from Surprise well •Assumed parameters fr
Slide 8: Surprise and JW-1 Oil – Western Amadeus
Surprise and JW‐1 Oil – Western Amadeus Surprise 1 REH c. 400 JW-1 oil shows, no flow South BOPD API North TWT Surprise‐1 Johnstone West‐1 Salt DHIs Salt Salt 6
Slide 9: Surprise-1 Oil Target
Surprise‐1 Oil Target 2551‐2552m of 9m core Lower Stairway Sandstone‐Surprise‐1, Dec. 2010. 7
Slide 10: Australia is importing c.80% of its total petroleum needs
Australia is importing c.80% of its total petroleum needs 8
Slide 11: TAPIS price +'ve differential to WTI
TAPIS price +’ve differential to WTI • Australian crude generally sold at TAPIS prices • TAPIS on average 20%+ higher than WTI both light sweet crude benchmarks 12.02.28 TAPIS US$131/bbl WTI US$103/bbl • Port Darwin 7 days sale from China, Singapore, 10 days from India • Based on historical data, CT
Slide 12: Australian Government Intervention to retain gas reserves for DOMGAS
Australian Government Intervention to retain gas reserves for DOMGAS • Boom in offshore exports of LNG from Australia • CSG supplies may tighten short as Gladstone LNG project swallows excess gas • Increasing environmental constraints on CSG • $6-9/GJ forecast by 2015 eastern states • Domgas for Per
Slide 13: Significant Infrastructure in Place
Significant Infrastructure in Place • Current oil production from the Infrastructure in Australia Amadeus Basin being delivered to market (Santos) Mereenie oil field (up to 300 MMbbls OOIP), (0.5 TCFG OGIP) on discovery Palm Valley gas field (0.5 TCFG) on discovery • Existing road, rail and pipeline
Slide 14: Unrivalled Materiality of Holdings
Unrivalled Materiality of Holdings‐ 70 million acres, multiple farmin opportunities, four basins, oil, gas, condensate, helium and coal opportunities, infrastructure for access to markets 12
Slide 15: Summary of Prospective Resources
Summary of Prospective Resources ‐excluding Surprise and surrounds Basin Nett Holdings Unrisked P50 UOIIP/UGIIP P50 Recoverable Prospective Resources Oil Gas Total Oil Gas Total (MM acres)** Bn. bbls TCFG Bn. BOE Bn. bbls TCFG Bn.BOE Amadeus Conventional 47 3.5 10.5 5.3 1.0 6.7 2.1 Amadeus Unconvent
Slide 16: Company Snapshot
Company Snapshot Trading Symbol ASX: CTP Unconventional Activity Armour Ordinary Shares 1,250 million Tamboran Listed Options 274 million Debt Nil Number of Shareholders c.8,000 Top 20 Shareholders 17% BG Cash at Feb 15, 2012* $11.0 million Recent Share Price $0.06 Market Capitalization $65 million
Slide 17: Board of Directors
Board of Directors • Highly experienced Board of Directors Dr. Henry Askin • 40 years of experience in the oil exploration industry Geophysicist, BSc (Hons), PhD • Retired 1997 as Australian Exploration Manager at Shell Non‐executive Chairman • Previous senior executive positions with Shell includin
Slide 18: Exec. Management: International, TSX/unconventional experience
Exec. Management : International, TSX/unconventional experience Chief Operating Officer • 20 years relevant experience. Dalton Hallgren • Specialist in drilling, operations, production Bakken Shale, Williston Basin, Marcellus & B.Eng, Capt US Army (Ret) Haynesville, Barnett Shales • Experience with
Slide 19: Achievements Since Listing
Achievements Since Listing • Drilled 5 conventional wells, four with oil shows with one (Surprise‐1 REH) a c.400 BOPD discovery, the 5th, Ooraminna‐2 is a gas discovery of up to 2 TCFG in place, awaiting possible further stepouts and unconventional drilling development • Drilled 9 coal wells and del
Slide 20: Share Price Outperforming ASX 300
Share Price Outperforming ASX 300 (Financial year 2011/12 to date Feb 28,2012) CTP ASX300 Energy Stocks only CTP has generally outperformed the ASX300 Energy Stocks. Indexed to 100 start of period ‐ Source Radar Group 18
Slide 21: Company Strategy and Focus
Company Strategy and Focus Long‐term Gas/ helium/ Longer‐term Crude oil/ monetisation condensate value adding to condensate of coal via discovery & gas via GTL discovery & mining, sales for and/or LNG for sales for early beneficiation medium‐term domestic and cash flow and export, cash export market
Slide 22: Growth Model
Growth Model Fund growth and development Stage 3 through partner funding Growth and Monetisation • Continue to exploit oil for Leverage 100% asset equity ready cash flow ownership, incremental farm‐ outs and progressive de‐risking • Monetisation of by exploration condensate/helium Stage 2 • Mone
Slide 23: Amadeus Basin-complexity brings plethora of opportunity
Amadeus Basin-complexity brings plethora of opportunity Amadeus Sections-pervasive Gillen Salt Member - efficient salt seal to trap hydrocarbons & Helium 21
Slide 24: Amadeus Basin: Surprise and Mount Kitty
Amadeus Basin: Surprise and Mount Kitty Surprise‐1 Re‐Entry Surprise • 2011 Surprise‐1 re‐entry c.400 BOPD light sweet crude • Core analysis revealed excellent live oil shows in both conventional and unconventional reservoirs at 2,500 m. Salt • EPT and oil sales planned April/May 2012 Salt Salt • Co
Slide 25: Pedirka Basin: Planned 2012
Pedirka Basin: Planned 2012 Madigan Madigan‐1 New Well • Targeting 0.5 billion bbls P50 UOIIP E W • 150 million bbls P50 prospective recoverable resource • Encouraging oil shows nearby at Blamore‐1 and Cadna-Owie Formation Simpson‐1 Poolowanna Cycle 1 • Close proximity to Madigan Trough kitchen Pool
Slide 26: Increasing Unconventional Activity
Increasing Unconventional Activity Unconventional Activity in Australia Global majors invested Tamboran Armour and drilling in Central Australia nearby CTP tenements. Australia has 396 TCF of technically recoverable shale gas resources (US EIA, June 2011). BG This amount exceeds the estimated recove
Slide 27: CTP Permian Coal JORC Exploration Target tonnage
CTP Permian Coal JORC “Exploration Target” tonnage * Coal tonnages viable “Exploration Target”‐AusIMM – the potential quantity and grade of the coal is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in
Slide 28: Pedirka Basin – Potential Coal Farmouts
Area Summary Pedirka Basin – Potential Coal Farmouts Coal: JORC Exploration Target • Pedirka licenses also prospective for coal – 100% acreage position – Company controls both petroleum and mineral permits over the coal package • Enormous coal potential (Exploration Target *) – Over 300 billion tonn
Slide 29: CTP Pedirka Coal Properties
CTP Pedirka Coal Properties • Specific Energy 20 – 26 Mj/kg, (4,800-6,200 kcals/kg) • Ash 8-19% (average 11%), • Moisture (air dried) 8-19% (av. 14%) • Single seams up to 35m in thickness • The coals are soft, Hardgrove Indices 80 - 115, • The coal is medium to high volatile 22-30% • Low sulphur 0.4
Slide 30: UCG/GTL Process
UCG/GTL Process Yield 1.5-2.0 bbls/tonne of coal 28
Slide 31: UCG is Proven Technology
UCG is Proven Technology 1. Linc Energy; Uzbekistan (50 years) power gen (brown coal) Qld (10 years) syngas & Liquids (black coal) 2. Eskom Sth Africa, already co‐firing the Majuba No4 Unit with syngas (black coal), plans 100MW UCG power station soon 3. Carbon Energy Qld syngas about to hook up 5 MW
Slide 32: UCG Licensing & Trials
UCG Licensing & Trials Technology Licensing available Ergo Exergy Inc (Can) Behind Eskom (Sth Africa) & Solid Energy (NZ) efforts (amongst others) Trial #s Growing (58 current & planned) 1.Australia, NZ. 2.Canada, USA. 3.Europe 4.Asia 5.Chile 30
Slide 33: Major Commercial Projects
Major Commercial Projects 1. Linc Energy (LNC) Uzbekistan (50 years) power gen (brown coal). 2. Eskom Sth Africa 2,100 MW UCG syngas fired operational 2017 (black coal). 3. Swan Hill Synfuels / Alberta Govn 300MW C$1.5bn Power Carbon Capture operational 2015 (black coal). 4. LNC Wyoming USA, power &
Slide 34: UCG Projects-Comparative Coal Tonnages
UCG Projects‐Comparative Coal Tonnages* • Linc Energy ‐ LNC ‐ Growth target of 100 billion tonnes exploration target over next 18 months • Cougar Energy ‐ CXY ‐ China 0.6 billion tonnes exploration target • Carbon Energy ‐ CNX– 0.7 billion tonnes in Qld (JORC Resource) • Whitehorse Energy ‐ WHE ‐ 1.
Slide 35: Generic Longer Term Gas to GTL Economics
Generic Longer Term Gas to GTL Economics Notional generic pre- Central 20,000 bpd GTL Plant Notional pre-feasibility feasibility independently independently derived, derived, not a financial not a financial forecast forecast, not to be relied Producer-owned gas field and Fischer-Tropsch GTL plant up
Slide 36: Contact Details
Contact Details Central Petroleum Limited Mark Simpson, Patersons Securities London Representative Phone: +61 8 9474 1444 Phone: +44 779 938 0757 www.centralpetroleum.com.au MSimpson@psl.com.au Stephen Tomsic, Patersons Securities John Heugh Corporate Advisor Australia Managing Director Phone: +61 8
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