Central Petroleum Limited · ASX:CTP
Central Petroleum — Queensland Investors Club Dinner (June 2015)
19 slides from Central Petroleum's conference presentation, Jun 10, 2015
Slide 1: Mereenie Acquisition: Consolidation & Catalyst
June 09, 2015. For personal use only MEREENIE ACQUISITION “CONSOLIDATION & CATALYST” Queensland Investors Club Dinner Presentation
Slide 2: Disclaimer
DISCLAIMER 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 For personal use only to investigate the affairs of Central Petroleum Ltd (“Company”). This presentation does not attempt to produc
Slide 3: The Asset: Mereenie Oil & Gas Field
THE ASSET Mereenie Oil & Gas Field For personal use only Discovered in 1963 | Production in 1984 123 PJ internal estimate of 2P Reserves with 120 PJ of internal estimate of 2C* Gas accumulation with an oil rim Present production capacity of 45 TJ/d (15PJ p.a.) Recent Focus as Oil producer
Slide 4: Mereenie Acquisition Strategy
MEREENIE ACQUISITION STRATEGY For personal use only The immediate objective of this acquisition is to: ➀ Provide immediate financial underpinning to Central AND ➁ Maximise uncontracted gas reserves as a catalyst for NEGI Thereby re-rating our production assets and surrounding exploration acreage. 4
Slide 5: Part I: Consolidation - The Immediate Benefits
For personal use only PART I: CONSOLIDATION - THE IMMEDIATE BENEFITS - 5
Slide 6: Acquisition Overview
ACQUISITION OVERVIEW For personal use only CTP will acquire a 50% interest in the Mereenie Oil & Gas Field from Santos and assume Operatorship CTP will become Operator across all 3 producing gas fields in Central Australia Total acquisition cost of A$55m funded by debt and available cash Com
Slide 7: Mereenie Acquisition: Sources and Uses of Funds
MEREENIE ACQUISITION $55M total acquisition cost For personal use only Sources and Uses of Funds – $35M Up-Front Cash Sources – $5M Pre-NEGI Free-Carry Available Cash* 5,000,000 Debt Finance 40,000,000 – $10M 12-Month Deferred Payment Total Sources of Funds 45,000,000 – Notional Non-Cash Considera
Slide 8: Compelling Acquisition Value Drivers
COMPELLING ACQUISITION VALUE DRIVERS Immediate Benefits: CTP Share For personal use only >600,000 boe sales (Year 1 forecast) 300,000 boe (yr 1) Reduced OpEx through field rationalisation $3.5M/yr Reduced reserve risk lowers interest rate by 1.70% $850k/yr Production coverage avoids planned
Slide 9: Benefits of Field Consolidation
BENEFITS OF FIELD CONSOLIDATION Opportunity to rationalise operating activity and gas For personal use only portfolio: Optimisation of all 3 gas fields in Central Australia (Mereenie / Palm Valley / Dingo) Potential to consolidate production across 3 fields Unit costs of production very volume
Slide 10: Operational Savings
OPERATIONAL SAVINGS For personal use only Quality control by blending Palm Valley and Mereenie: substantial cost reduction available through increased production – both selling around 5TJ/d Remote operations and modern technology are keys to future optimisation Mereenie reached production ra
Slide 11: Employment Philosophy
EMPLOYMENT PHILOSOPHY For personal use only 1. Family Values for Working Families Maximising the number of employees who can commute daily from their homes in Alice Springs 2. Northern Territory for Northern Territorians Maximising employees based at Alice Springs who can be “bused” in from ther
Slide 12: Pre-NEGI Free Carry
PRE-NEGI FREE CARRY For personal use only $10M Scope of Works to influence NEGI outcome: Review all data acquired since 2009 (when field converted to oil focus) Conduct review on the basis of access to high value East Coast market Workover wells where gas producing zones are behind pipe and pe
Slide 13: Target Zones
For personal use only TARGET ZONES Developed reservoirs Under-developed reservoirs Total 66 wells to date Main producing reservoirs Pacoota P1-80 (Gas) Pacoota P1-280 (Gas) Pacoota P3-120/130 (Gas/Oil) 13
Slide 14: Acquired 100% in Dingo Area Targets
ACQUIRED 100% IN DINGO AREA TARGETS For personal use only Re-acquired 1,492 km2, excised from EP82 (Santos at 40% and earning) Rationale to mature leads identified around Dingo and Central’s 100% infrastructure Attractive to find incremental fields Seismic acquisition required Assess Orang
Slide 15: Part II: Catalyst - The Future Upside Is Enormous
For personal use only PART II: CATALYST - THE FUTURE UPSIDE IS ENORMOUS - 15
Slide 16: Major Upside Opportunities
MAJOR UPSIDE OPPORTUNITIES 123PJs internal estimate of existing 2P gas reserves at Mereenie*, target of 280PJs by end of 2015 For personal use only The NEGI pipeline will add substantial value to CTP ⁻ NEGI contingent cost of $15M cash and $55M - $75M work program is contingent on CTP benefittin
Slide 17: Why Domestic Gas?
WHY DOMESTIC GAS? For personal use only The Gas Industry is in a state of flux and change. “Out of all the fossil fuels, natural gas has the highest absolute growth. The global demand for natural gas increases by half over the period to 2035” Keisuke Sadamori IEA – 29/13/2013 Oil and Domestic
Slide 18: What NEGI Means for Central
WHAT NEGI MEANS FOR CENTRAL For personal use only 10 October 2014: COAG appoints NT Government to NEGI would unlock value in CTP’s production assets lead the process and surrounding exploration portfolio: 7 November 2014: NSW & NT sign gas pipeline MOU East Coast market demand unsatisfied si
Slide 19: 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 Ph: +61 (0) 7 3181 3800 | Fx: +61 (0) 7 3181 3855 Level 32, 400 George Street, Brisbane, Queensland 4000, Australia PO Box 12214, Ge
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