Central Petroleum Limited · ASX:CTP
Central Petroleum — Gold Coast Investment Showcase (June 2015)
21 slides from Central Petroleum's conference presentation, Jun 23, 2015
Slide 1: Mereenie Acquisition: Consolidation & Catalyst
June 18, 2015 For personal use only MEREENIE ACQUISITION “CONSOLIDATION & CATALYST” The foundations are laid Gold Coast Investment Showcase Presentation
Slide 2: 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
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
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: 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 8: 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 9: 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 10: 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 11: Part II: Catalyst
For personal use only PART II: CATALYST - THE FUTURE UPSIDE IS ENORMOUS - 11
Slide 12: Major Upside Opportunities
MAJOR UPSIDE OPPORTUNITIES For personal use only 123PJs internal estimate of existing 2P gas reserves at Mereenie*, target of 280PJs by end of 2015 ⁻ Sufficient to underpin future supply requirements of proposed NEGI pipeline for domestic market The NEGI pipeline will add substantial value to CT
Slide 13: 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 14: What NEGI Means for Central
WHAT NEGI MEANS FOR CENTRAL For personal use only NEGI would unlock value in CTP’s production assets 10 October 2014: COAG appoints NT Government to and surrounding exploration portfolio: lead the process East Coast market demand unsatisfied significant 7 November 2014: NSW & NT sign gas pip
Slide 15: Part III: Outlook
For personal use only PART III: OUTLOOK - THE FOUNDATIONS ARE LAID - 15
Slide 16: The Foundations of Success
THE FOUNDATIONS OF SUCCESS For personal use only In the last three years Central has laid the foundations necessary for market success by establishing supply contracts, field development, certified reserves and financing ahead of the NEGI domestic supply pipeline. Similarly, QGC took two years t
Slide 17: The Foundations of Success: Supply Contracts and Field Development
THE FOUNDATIONS OF SUCCESS For personal use only Supply Contracts: CTP has 13 TJ/day of existing gas contracts under its operatorship (cf 11 TJ/day at QGC in May 2006)(1) and on an equity accounted basis 10.5 TJ/day (cf QGC 10 TJ/day in May 2006) (2) CTP has NEGI catalyst to come (QGC had PNG Pi
Slide 18: The Foundations of Success: Reserves Certification
THE FOUNDATIONS OF SUCCESS For personal use only Reserves Certification: CTP is presently undertaking baseline for certified reserves starting with Palm Valley then Dingo then Mereenie (target by August 170 PJ and by end of the year 400 PJ). Source: QGC Prospectus 04-Aug-2006 17
Slide 19: The Foundations of Success: Financing
THE FOUNDATIONS OF SUCCESS For personal use only Financing: CTP has 368 million shares on issue (cf QGC 353 million as at 30 June 2005)(1) CTP has $47 million in debt (cf QGC $43 million as at 30 June 2006) (2) In fiscal year 2015-2016 will begin eating into tax losses (cf QGC in 2006/2007) (1
Slide 20: Extract from QGC Prospectus: Energy Outlook
EXTRACT FROM QGC PROSPECTUS For personal use only Energy Outlook In the last 5 years, the price of Australian thermal coal for export has approximately doubled, and oil prices have trebled. However, gas prices in Australia have remained relatively static, so much so that the price is now only about
Slide 21: 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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