Central Petroleum Limited · ASX:CTP
Central Petroleum — Investor Presentation (June 2012)
41 slides from Central Petroleum's investor presentation, Jun 12, 2012
Slide 1: Latest Company Presentation
ASX ANNOUNCEMENT & MEDIA RELEASE ASX CODE: CTP 12 June 2012 Latest Company Presentation For personal use only Central Petroleum Ltd (ASX:CTP) (“Company”) attaches its latest company presentation. Included in the presentation are high level details of Richard Cottee’s strategy for the Company (pages
Slide 2: Company Transformation
For personal use only Company Transformation June 2012
Slide 3: Disclaimer
Disclaimer Intro Strategy Valuation Management Assets 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 d
Slide 4: Contents
Contents Intro Strategy Valuation Management Assets For personal use only Introduction 3 Strategy Overview 10 Valuation Comparisons 17 Board & Management 20 Company Assets 23 – Overview 24 – Amadeus Basin 26 – South Georgina Basin 30 – Wiso Basin 31 – Pedirka Basin 32 Appendices 35 – Freestone Propo
Slide 5: Company Snapshot
Company Snapshot Intro Strategy Valuation Management Assets For personal use only Trading Symbol ASX: CTP Activity & Permit Map Current Ordinary Shares 1,383 million Current Listed Options 302 million Debt Nil Number of Shareholders Approx. 8,000 Top 20 Shareholders 27% Cash at 30 April 2012* $16.5m
Slide 6: Company Transformation
Company Transformation Intro Strategy Valuation Management Assets For personal use only Current Status 6 years of poor share price performance Recent history of internal disputes and litigation Recently no permanent CEO or Managing Director (Until Richard Cottee this week) No significant far
Slide 7: Freestone Proposal
Company Transformation Intro Strategy Valuation Management Assets For personal use only Freestone Proposal Appoint world class CEO Richard Cottee. Proven success at transforming QGC from a $20m explorer to a $5.7b non‐conventional gas producer Board renewal Eliminate internal and external disp
Slide 8: Primed for Development
Primed for Development Intro Strategy Valuation Management Assets For personal use only Unmatched scale – Early mover on Australia’s unconventional potential – One of the largest underexplored holdings under single operatorship globally ‐ 68 million acres Highly prospective ‐ Unconventional P50* pro
Slide 9: Asset Overview – Centralian Superbasin
Asset Overview – Centralian Superbasin Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Central Petroleum holds or has applications over some of the largest prospective exploration acreage in the developed world. Accumulated ov
Slide 10: Infrastructure
Infrastructure Intro Strategy Valuation Management Assets 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 acre because the delivery network is extensive and oil flows
Slide 11: Value Drivers
Value Drivers Intro Strategy Valuation Management Assets For personal use only • Surprise‐1 discovery flowed 380bbl/day on test Oil Focused for Early • Currently planning 3D seismic to define discovery size and plan follow‐up appraisal wells Cash Flow • Oil discoveries commercially exploitable 6 to
Slide 12: Strategy Overview
Intro Strategy Valuation Management Assets For personal use only Strategy Overview 10
Slide 13: Strategy – Building Value
Strategy – Building Value Intro Strategy Valuation Management Assets For personal use only A business builds value through successful operations, but shareholders translate that value into the share price. Central Petroleum will focus on operating the business and conveying the message to shareholde
Slide 14: Company Operations – Transition to Production
Company Operations ‐ Transition to Production Intro Strategy Valuation Management Assets For personal use only Central Petroleum is entering a transition stage from acreage accumulation and exploration to Exploration and Production. Three broad areas of focus. 1. First Reserves & Production – Surpri
Slide 15: First Reserves & Production – Surprise-1
1. First Reserves & Production ‐ Surprise‐1 Intro Strategy Valuation Management Assets For personal use only Overview Surprise‐1 confirms that the western flank of the Amadeus basin is oil saturated (Meerinie field in the east is filled with oil to spill point, oil is found to fully saturate section
Slide 16: Expanding Reserves & Production – Inventory & Reserves
2. Expanding Reserves & Production ‐ Inventory & Reserves Intro Strategy Valuation Management Assets For personal use only Develop Inventory Prioritise large acreage on basis of prospectivity to cost effectively increase prospects for success. Utilise state of the art techniques to develop high qu
Slide 17: Expanding Reserves & Production – Acreage Retention
2. Expanding Reserves & Production ‐ Acreage Retention Intro Strategy Valuation Management Assets For personal use only Central Petroleum has built a world class acreage holding. An acreage of this size comes with material obligations and expenses. Cost effective retention and exploitation of these
Slide 18: Expanding Reserves & Production – Farm-outs
2. Expanding Reserves & Production ‐ Farm‐outs Intro Strategy Valuation Management Assets For personal use only Interest from Global Majors in Non‐Conventional space Majors looking actively at global non‐conventional acreage Very active in US and increasingly in Australia, particularly Northern
Slide 19: Valuation Comparisons
Intro Strategy Valuation Management Assets For personal use only Valuation Comparisons 17
Slide 20: Attractive Comparative Valuations
Attractive Comparative Valuations Intro Strategy Valuation Management Assets For personal use only Comparative Regional Transactions – “Big Oil” paying high price for developed or proven acreage Date Unconventional Transactions – Farm‐ins & Acquisitions A$/Acre 7 Nov 2011 Beach Petroleum $94 million
Slide 21: Case Study – Buru Energy
Case Study – Buru Energy Intro Strategy Valuation Management Assets 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/ acre CTP is trading at
Slide 22: Board & Management
Intro Strategy Valuation Management Assets For personal use only Board & Management 20
Slide 23: Board of Directors (proposed)
Board of Directors (proposed) Intro Strategy Valuation Management Assets For personal use only Highly experienced Board of Directors Dr. Henry Askin Over 40 years of experience in the oil exploration industry Geophysicist, BSc (Hons), PhD Previously Australian Exploration Manager at Shell Non‐
Slide 24: Management Team
Management Team Intro Strategy Valuation Management Assets For personal use only Internationally experienced management team Dalton Hallgren 20+ years relevant experience BEng Specialist in drilling, operations, production Bakken, Marcellus & Haynesville & Barnett Shales Chief Operating Office
Slide 25: Company Assets
Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Company Assets 23
Slide 26: Asset Overview – Centralian Superbasin
Asset Overview – Centralian Superbasin Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Central Petroleum holds or has applications over some of the largest prospective exploration acreage in the developed world. Accumulated ov
Slide 27: Asset Details – Underexplored and Highly Prospective
Asset Details – Underexplored and Highly Prospective Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only 25
Slide 28: Amadeus Basin
Amadeus Basin Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Land position of 47 million acres at 100% working interest * Amadeus Location – Virtually covers the entire Amadeus Basin – * c.0.7 million acres JV 75% CTP Eno
Slide 29: Amadeus Basin: Surprise
Amadeus Basin: Surprise Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Surprise‐1 Discovery Surprise Oil Discovery – New Oil Province? Surprise‐1 valuation potential significant proportion of entire CTP market capitalisation
Slide 30: Surprise Volumetrics: Upside Potential – OIIP
Surprise Volumetrics: Upside Potential ‐ OIIP Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Case 1 Case 2 Case 3 Case 1 Case 2 • Might be one large structure •Parameters from Surprise well • Assumed parameters from well • As
Slide 31: Southern Georgina
Southern Georgina Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Southern Georgina Location Land position of over 6 million acres at 100% working interest – Independent mean prospective resource of 5 Billion bbls and 33 TCF
Slide 32: Southern Georgina – In Greater Detail
Southern Georgina – In Greater Detail Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only 30
Slide 33: Wiso Basin (Lander Trough)
Wiso Basin (Lander Trough) Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Lander Trough Location Land position of 11 million acres at 100% working interest – All acreage in the early oil to very early gas window (focused in
Slide 34: Pedirka Basin
Pedirka Basin Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Pedirka Location Land position of 13 million acres of petroleum and mineral rights (100% working interest) – Six wells drilled to‐date have good oil shows in thre
Slide 35: Pedirka Basin – Madigan
Pedirka Basin – Madigan Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Madigan Prospect Madigan Prospect E W – Oil target defined on new seismic – Targeting large prospective resource – Encouraging oil shows nearby at Blamo
Slide 36: Pedirka Basin – Coal
Pedirka Basin – Coal Intro Strategy Valuation Management Assets Amadeus Surprise 1 S. Georgina Wiso Pedirka Pedirka Coal For personal use only Pedirka licenses also prospective for coal – 100% acreage position – Company controls both petroleum and mineral permits over the coal package Enormous c
Slide 37: Appendices
Intro Strategy Valuation Management Assets For personal use only Appendices 35
Slide 38: App 1. Freestone Proposal Details
App 1. Freestone Proposal Details Intro Strategy Valuation Management Assets For personal use only Key Employment Services Terms A$500,000 per annum (plus superannuation at the statutory entitlement level) for executive services. Initial 3 year term A$250,000 sign‐on fee subject to and post shareh
Slide 39: App 2. Non-Conventional Extraction Process
App 2. Non‐Conventional Extraction Process Intro Strategy Valuation Management Assets For personal use only The economic extraction of hydrocarbons from low‐permeability geological plays, particularly shale plays, has been made possible by the combined use of horizontal drilling and hydraulic fractu
Slide 40: App 3. Northern Territory Exploration Activity
App 3. Northern Territory Exploration Activity Intro Strategy Valuation Management Assets For personal use only 38
Slide 41: Contact Details
Contact Details Intro Strategy Valuation Management Assets For personal use only Central Petroleum Limited Phone: +61 8 9474 1444 Website: www.centralpetroleum.com.au 39
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